Nebius Group (NASDAQ:NBIS) Stock Price Down 3.6% – Here’s Why

Nebius Group N.V. (NASDAQ:NBIS)’s stock price dropped 3.6% during trading on Wednesday . The stock traded as low as $213.60 and last traded at $213.93. Approximately 8,973,211 shares were traded during mid-day trading, a decline of 50% from the average daily volume of 18,085,938 shares. The stock had previously closed at $221.97.

Nebius Group News Roundup

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

• Positive Sentiment: Funding concerns appear to be easing, helping NBIS rebound after six consecutive declining sessions that erased approximately 24% of its value. Nebius Group stock surges as funding concerns ease
• Positive Sentiment: Strong Nvidia results and an optimistic outlook for AI demand lifted the broader AI trade and increased investor interest in Nebius as a provider of computing capacity and data-center infrastructure. Nebius stock outlook as Nvidia predicts robust AI growth
• Positive Sentiment: Palo Alto Networks’ CEO described Nebius as being in “a different league,” reinforcing the view that scarce GPUs and data-center capacity could give AI-cloud providers pricing power. Palo Alto Networks’ CEO Says Nebius Is in a Different League
• Positive Sentiment: Analysts highlighted Q2 revenue growth of 454% year over year to $582.3 million, nearly 600% ARR growth and a 49.7% EBITDA margin. Nvidia’s 9.3% stake and favorable debt terms were cited as reducing expansion and financing risks. Nebius: A Powerful 5-Year Opportunity
• Positive Sentiment: Goldman Sachs reaffirmed its Buy rating, providing additional institutional validation. Goldman Sachs Reaffirms Their Buy Rating on Nebius Group
• Positive Sentiment: Commentary points to large customer commitments, substantial prepayments and multi-year AI infrastructure contracts as potential funding sources for capacity expansion. Nebius Is Becoming Much More Than An AI Cloud
• Neutral Sentiment: All resolutions at Nebius’s August 25 annual meeting were approved, indicating shareholder support but no immediate operating change. Nebius Group announces Annual General Meeting results
• Neutral Sentiment: Broader market commentary suggests improving technical trends, sentiment and technology fundamentals could support a post-summer equity rally. Why the Summer Slump is Setting Up Wall Street’s Next Rally
• Negative Sentiment: Despite bullish long-term views, NBIS carries a rich valuation—about 25 times projected current-year revenue—leaving the stock vulnerable if growth, margins or capacity expansion disappoint. Nebius: Riding At The Front Of The AI Buildout

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the company. Zacks Research downgraded Nebius Group from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 31st. Freedom Capital raised Nebius Group from a “hold” rating to a “strong-buy” rating in a report on Monday, July 20th. Citizens Jmp lifted their price target on Nebius Group from $175.00 to $270.00 and gave the company a “market outperform” rating in a research report on Thursday, May 14th. Robert W. Baird boosted their price objective on Nebius Group from $250.00 to $340.00 and gave the stock an “outperform” rating in a report on Thursday, August 13th. Finally, Morgan Stanley upped their price objective on shares of Nebius Group from $126.00 to $144.00 and gave the stock an “equal weight” rating in a research report on Thursday, May 14th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $226.00.

Nebius Group Price Performance

The business’s fifty day moving average price is $219.50 and its 200-day moving average price is $177.45. The company has a market capitalization of $55.28 billion, a P/E ratio of -7,280.24 and a beta of 4.23. The company has a current ratio of 4.03, a quick ratio of 4.03 and a debt-to-equity ratio of 0.82.

Nebius Group (NASDAQ:NBIS) last released its earnings results on Thursday, August 13th. The company reported ($0.12) EPS for the quarter, beating analysts’ consensus estimates of ($0.67) by $0.55. Nebius Group had a negative return on equity of 6.03% and a net margin of 4.55%.The business had revenue of $582.30 million for the quarter, compared to analysts’ expectations of $567.91 million. During the same quarter in the prior year, the firm earned $2.38 earnings per share. The firm’s revenue was up 454% on a year-over-year basis. As a group, sell-side analysts predict that Nebius Group N.V. will post -3.76 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Arkadiy Volozh sold 46,627 shares of the stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $235.45, for a total transaction of $10,978,327.15. Following the transaction, the chief executive officer directly owned 821,662 shares in the company, valued at approximately $193,460,317.90. This represents a 5.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CRO Marc Boroditsky sold 10,776 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $276.20, for a total value of $2,976,331.20. Following the transaction, the executive directly owned 26,886 shares in the company, valued at approximately $7,425,913.20. This represents a 28.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 186,506 shares of company stock worth $46,264,387.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of NBIS. Royal Bank of Canada bought a new stake in shares of Nebius Group in the 1st quarter worth approximately $1,628,000. Millennium Management LLC bought a new position in shares of Nebius Group during the 1st quarter valued at $11,563,000. NewEdge Advisors LLC bought a new position in shares of Nebius Group during the 1st quarter valued at $40,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC bought a new position in shares of Nebius Group during the 1st quarter valued at $9,084,000. Finally, Daiwa Securities Group Inc. purchased a new position in Nebius Group in the 2nd quarter worth $68,000. 21.90% of the stock is currently owned by 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.