Nebius Group (NASDAQ:NBIS) Shares Down 12.2% – Here’s Why

Shares of Nebius Group N.V. (NASDAQ:NBIS) dropped 12.2% during mid-day trading on Friday. The stock traded as low as $163.27 and last traded at $165.47. Approximately 34,601,296 shares were traded during mid-day trading, an increase of 93% from the average session volume of 17,929,672 shares. The stock had previously closed at $188.41.

Key Headlines Impacting Nebius Group

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

• Positive Sentiment: Nebius continues to show stronger revenue generation and faster quarter-over-quarter growth than Innodata across the available periods, supporting the company’s long-term AI infrastructure story. Innodata vs. Nebius: Here’s What Revenue Trends Tell Investors About These Artificial Intelligence Companies
• Positive Sentiment: Analysts note that customer capacity requests reportedly extend into 2028, while a $775 million secured financing facility could help fund expansion through contracted cash flows and reduce Nebius’ need for corporate capital. Its move into managed inference and newer infrastructure may also improve economics beyond basic GPU rental. Nebius: The Real Test Starts After This Selloff
• Positive Sentiment: Some market commentary identifies Nebius as a potential dip-buying opportunity because of strong AI demand and rapid revenue growth, although this view is speculative and countered by broader market risks. AI Stocks Bleed as Inflation Bites: Any Buying Opportunities?

Analyst Ratings Changes

NBIS has been the subject of a number of research analyst reports. Robert W. Baird boosted their target price on Nebius Group from $250.00 to $340.00 and gave the company an “outperform” rating in a research note on Thursday, August 13th. Weiss Ratings downgraded shares of Nebius Group from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday. President Capital started coverage on shares of Nebius Group in a research report on Tuesday, June 30th. They set a “buy” rating for the company. William Blair started coverage on shares of Nebius Group in a research note on Wednesday, September 30th. They issued an “outperform” rating for the company. Finally, Truist Financial raised Nebius Group to a “strong-buy” rating in a research report on Thursday, September 10th. Three research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, five have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $245.69.

Nebius Group Stock Performance

The company has a current ratio of 4.03, a quick ratio of 4.03 and a debt-to-equity ratio of 0.82. The stock’s 50 day moving average price is $224.02 and its 200 day moving average price is $206.95. The company has a market capitalization of $41.87 billion, a price-to-earnings ratio of -5,513.83 and a beta of 4.18.

Nebius Group (NASDAQ:NBIS) last posted its quarterly earnings results on Thursday, August 13th. The company reported ($0.12) earnings per share 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 firm had revenue of $582.30 million during the quarter, compared to the consensus estimate of $567.91 million. During the same period last year, the company earned $2.38 earnings per share. The business’s revenue was up 454% compared to the same quarter last year. Analysts expect that Nebius Group N.V. will post -3.48 earnings per share for the current year.

Insider Transactions at Nebius Group

In other news, CRO Marc Boroditsky sold 7,000 shares of the company’s stock in a transaction that occurred on Monday, October 12th. The shares were sold at an average price of $211.23, for a total transaction of $1,478,610.00. Following the completion of the sale, the executive owned 7,000 shares of the company’s stock, valued at approximately $1,478,610. This represents a 50.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Arkadiy Volozh sold 37,778 shares of the stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $234.16, for a total transaction of $8,846,096.48. Following the sale, the chief executive officer owned 785,236 shares in the company, valued at $183,870,861.76. This represents a 4.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 151,230 shares of company stock worth $36,821,606.

Institutional Investors Weigh In On Nebius Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Saudi Central Bank boosted its stake in Nebius Group by 110.0% in the second quarter. Saudi Central Bank now owns 167,819 shares of the company’s stock valued at $46,347,000 after buying an additional 87,896 shares in the last quarter. Lombard Odier Asset Management Switzerland SA acquired a new position in Nebius Group during the first quarter worth about $1,087,000. Situational Awareness LP bought a new position in shares of Nebius Group in the second quarter worth about $1,232,895,000. HB Wealth Management LLC bought a new position in shares of Nebius Group in the first quarter worth about $735,000. Finally, Amundi boosted its stake in shares of Nebius Group by 10.6% in the 1st quarter. Amundi now owns 1,343,954 shares of the company’s stock valued at $139,449,000 after purchasing an additional 128,380 shares in the last quarter. 21.90% of the stock is currently owned by institutional investors.

About Nebius Group

Nebius Group N.V. is a technology company focused on artificial intelligence infrastructure and related services. Through its Nebius AI business, the company provides cloud-based computing infrastructure designed for developing, training and deploying machine-learning and generative AI applications, including access to accelerated computing, data storage, networking and managed cloud services.

The company also develops tools and services intended to support AI developers and businesses, including data and machine-learning infrastructure.