Nebius Group (NASDAQ:NBIS) Shares Gap Down – Here’s Why

Nebius Group N.V. (NASDAQ:NBIS) gapped down before the market opened on Wednesday . The stock had previously closed at $276.17, but opened at $240.27. Nebius Group shares last traded at $239.8160, with a volume of 8,461,688 shares trading hands.

Key Stories Impacting Nebius Group

Here are the key news stories impacting Nebius Group this week:

• Positive Sentiment: Nebius highlighted growing demand for its AI infrastructure business, announcing winners of its expanded AI Discovery Awards and showcasing momentum in healthcare and life sciences AI use cases. Nebius celebrates healthcare and life sciences innovators at expanded AI Discovery Awards
• Positive Sentiment: Some commentary points to continued strong customer demand and a record pipeline, suggesting Nebius still has growth support even after the recent pullback. Will Nebius’ Strong Customer Pipeline Drive Future Growth?
• Neutral Sentiment: Meta’s push into selling AI computing capacity is also being framed as evidence of strong industry demand, which could support the long-term AI infrastructure market even if it pressures current neocloud valuations. Meta Stock Rallies On Reported Plan For AI Cloud Business; CoreWeave Slides
• Negative Sentiment: Investors are worried Meta’s cloud ambitions could directly compete with Nebius and other AI cloud providers, which has triggered a sharp selloff in the stock. Meta Stock Falls as AI Cloud Plans Hit an Immediate Snag
• Negative Sentiment: Market coverage also says Nebius remains vulnerable to valuation pressure, with recent gains in AI demand not enough to offset concerns about its elevated multiple. Nebius Group (NBIS) Stock Looks Overvalued On Earnings While AI Growth Stays Strong

Wall Street Analyst Weigh In

NBIS has been the topic of several research analyst reports. BNP Paribas Exane assumed coverage on shares of Nebius Group in a research report on Tuesday, June 2nd. They issued a “neutral” rating and a $255.00 target price on the stock. BWS Financial increased their price target on shares of Nebius Group from $130.00 to $200.00 and gave the stock a “buy” rating in a research note on Monday, March 16th. Freedom Capital lowered shares of Nebius Group from a “strong-buy” rating to a “hold” rating in a report on Monday, April 13th. DA Davidson lowered shares of Nebius Group from a “buy” rating to a “neutral” rating and lifted their price target for the company from $200.00 to $250.00 in a report on Monday, May 18th. Finally, Cantor Fitzgerald assumed coverage on shares of Nebius Group in a research note on Thursday, April 9th. They set an “overweight” rating and a $129.00 price objective for the company. Nine research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Nebius Group presently has an average rating of “Moderate Buy” and a consensus price target of $203.25.

Nebius Group Trading Down 5.9%

The company has a market capitalization of $54.56 billion, a PE ratio of 69.56 and a beta of 4.10. The company has a debt-to-equity ratio of 1.16, a quick ratio of 8.33 and a current ratio of 8.33. The business has a fifty day moving average price of $218.50 and a 200 day moving average price of $144.33.

Nebius Group (NASDAQ:NBIS) last issued its earnings results on Thursday, May 14th. The company reported ($0.23) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.77) by $0.54. The business had revenue of $399.00 million during the quarter, compared to analysts’ expectations of $375.13 million. Nebius Group had a negative return on equity of 9.11% and a net margin of 95.27%.The company’s revenue was up 684.0% compared to the same quarter last year. Analysts expect that Nebius Group N.V. will post -1.91 EPS for the current fiscal year.

Insider Activity at Nebius Group

In related news, General Counsel Boaz Tal sold 5,100 shares of Nebius Group stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $199.39, for a total transaction of $1,016,889.00. Following the transaction, the general counsel owned 80,754 shares in the company, valued at approximately $16,101,540.06. The trade was a 5.94% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Danila Shtan sold 15,678 shares of Nebius Group stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $238.96, for a total transaction of $3,746,414.88. Following the transaction, the chief technology officer owned 291,700 shares in the company, valued at $69,704,632. The trade was a 5.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 626,887 shares of company stock valued at $124,696,143 over the last quarter.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in NBIS. Silverleafe Capital Partners LLC purchased a new stake in shares of Nebius Group in the second quarter worth about $934,000. MassMutual Private Wealth & Trust FSB grew its position in Nebius Group by 95.7% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 229 shares of the company’s stock valued at $63,000 after acquiring an additional 112 shares in the last quarter. Sarver Vrooman Wealth Advisors acquired a new stake in Nebius Group in the second quarter valued at approximately $28,000. Confluence Investment Management LLC raised its stake in shares of Nebius Group by 2.0% during the second quarter. Confluence Investment Management LLC now owns 2,475 shares of the company’s stock valued at $684,000 after purchasing an additional 48 shares during the period. Finally, VectorGlobal IAG Inc. purchased a new stake in shares of Nebius Group during the first quarter valued at approximately $461,000. 21.90% of the stock is owned by hedge funds and other institutional investors.

Nebius Group Company Profile

Nebius Group N.V., a technology company, builds intelligent products and services powered by machine learning and other technologies to help consumers and businesses navigate the online and offline world. The company’s services include Nebius AI, an AI-centric cloud platform that offers infrastructure and computing capability for AI deployment and machine-learning oriented solutions; and Toloka AI that offers generative AI (GenAI) solutions at every stage of the GenAI lifecycle, such as data annotation and generation, model training and fine-tuning, and quality assessment of large language model for accuracy and reliability.