Nebius Group (NASDAQ:NBIS) Shares Down 4.9% – Here’s Why

Nebius Group N.V. (NASDAQ:NBIS) dropped 4.9% during mid-day trading on Friday . The company traded as low as $100.27 and last traded at $100.82. Approximately 11,439,376 shares traded hands during trading, a decline of 24% from the average daily volume of 14,957,887 shares. The stock had previously closed at $105.97.

Trending Headlines about Nebius Group

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

• Positive Sentiment: Large backlog and enterprise deals underpin growth thesis — multiple write-ups highlight a roughly $45–46B backlog (big Meta and Microsoft contracts) that management says supports $7–9B ARR and targets ~40% adjusted EBITDA by FY2026; that backlog gives revenue visibility if execution continues. Nebius: The $45 Billion Backlog Nobody Is Pricing In
• Positive Sentiment: Product expansion — Nebius AI Cloud 3.5 adds serverless capabilities and new NVIDIA GPU options (targeting robotics, physical AI and inference), which can accelerate customer onboarding and higher‑value workloads. Product traction supports long‑term revenue conversion of the backlog. Nebius AI Cloud 3.5 Introduces Serverless AI
• Positive Sentiment: Institutional/analyst support rising — recent coverage and price‑target updates (including Bank of America initiation/reviews) have reinforced the bullish case and provide buy‑side validation that can support buying interest. Bank of America revamps price targets on CoreWeave, Nebius stocks
• Positive Sentiment: Short‑squeeze narrative persists — several commentaries point to elevated short interest and mechanics that could amplify moves if sentiment shifts, creating upward pressure independent of fundamentals. Nebius: Short Squeeze Potential Is Mounting
• Neutral Sentiment: Peer comparisons highlight both opportunity and risk — coverage comparing Nebius to peers like CoreWeave emphasizes outsized revenue growth but also flags differences in capital structure and execution timing; useful context for relative valuation and risk. Nebius vs. CoreWeave: Which AI Cloud Stock is the Better Bet?
• Negative Sentiment: Material funding and dilution risk — reporting shows sizable recent convertible issuance (~$4.6B) and analyses estimate total future raises could exceed $20B to fund capex and expansion, which raises dilution and financing‑cost concerns for shareholders. Nebius: Massive AI Deals Drive Growth, But Dilution Risks Loom
• Negative Sentiment: Recent quarterly miss and heavy near‑term spending — Nebius missed Q4 revenue/EPS estimates (late capacity ramp) and continues high CapEx and operating losses; execution timing and cash burn are the main near‑term downside risks investors are pricing.

Wall Street Analyst Weigh In

A number of research analysts recently commented on NBIS shares. Citigroup assumed coverage on Nebius Group in a report on Monday, March 16th. They issued a “buy” rating and a $169.00 price target for the company. BWS Financial upped their target price on Nebius Group from $130.00 to $200.00 and gave the company a “buy” rating in a research report on Monday, March 16th. Bank of America began coverage on Nebius Group in a research note on Tuesday. They set a “buy” rating and a $150.00 target price for the company. Compass Point began coverage on shares of Nebius Group in a research report on Wednesday, February 18th. They set a “buy” rating and a $150.00 price target for the company. Finally, Weiss Ratings lowered shares of Nebius Group from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday, January 15th. Two investment analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Nebius Group currently has a consensus rating of “Moderate Buy” and a consensus target price of $157.09.

Nebius Group Stock Down 4.9%

The company has a quick ratio of 6.57, a current ratio of 3.08 and a debt-to-equity ratio of 0.89. The firm has a market capitalization of $25.39 billion, a price-to-earnings ratio of -69.05 and a beta of 4.02. The stock has a 50 day moving average of $100.11 and a 200 day moving average of $101.16.

Nebius Group (NASDAQ:NBIS) last announced its quarterly earnings data on Thursday, February 12th. The company reported ($0.69) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.42) by ($0.27). The firm had revenue of $227.70 million for the quarter, compared to analyst estimates of $246.05 million. Nebius Group had a net margin of 19.02% and a negative return on equity of 11.70%. As a group, analysts expect that Nebius Group N.V. will post -1.1 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Nebius Group

Hedge funds have recently added to or reduced their stakes in the business. Parkside Financial Bank & Trust acquired a new stake in shares of Nebius Group during the fourth quarter worth $25,000. SHP Wealth Management acquired a new position in shares of Nebius Group in the 4th quarter valued at about $26,000. Root Financial Partners LLC bought a new stake in shares of Nebius Group during the 4th quarter valued at about $26,000. Blue Trust Inc. grew its position in shares of Nebius Group by 73.8% during the 4th quarter. Blue Trust Inc. now owns 332 shares of the company’s stock valued at $28,000 after buying an additional 141 shares during the last quarter. Finally, Armstrong Advisory Group Inc. raised its stake in Nebius Group by 500.0% during the fourth quarter. Armstrong Advisory Group Inc. now owns 360 shares of the company’s stock worth $30,000 after acquiring an additional 300 shares during the period. Institutional investors and hedge funds own 21.90% of the company’s stock.

About Nebius Group

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.