Nebius Group (NASDAQ:NBIS) Stock Falls 7.4% – Here’s What Happened

Nebius Group N.V. (NASDAQ:NBIS) traded down 7.4% on Thursday. The company traded as low as $217.73 and last traded at $219.71. Approximately 21,509,358 shares were traded during mid-day trading, an increase of 22% from the average session volume of 17,667,910 shares. The stock had previously closed at $237.15.

Key Headlines Impacting Nebius Group

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

• Positive Sentiment: Rosenblatt Securities initiated coverage with a Buy rating and a $304 price target, implying substantial upside from the referenced share price. William Blair also assigned NBIS an Outperform rating, adding to bullish Wall Street sentiment. Wall Street analyst prediction for Nebius stock
• Positive Sentiment: Nebius has signed tens of billions of dollars in AI-compute contracts and has delivered exceptionally rapid revenue growth, making it attractive to investors seeking a pure-play alternative to mega-cap technology companies. Nebius captures pure-play AI investors
• Neutral Sentiment: Coverage comparing Nebius with CoreWeave highlights strong growth at both cloud-AI providers, but does not establish a clear near-term advantage for NBIS. Better cloud AI pick: CoreWeave or Nebius Group
• Negative Sentiment: Investors are increasingly concerned about Nebius’s balance sheet and the risks of financing an aggressive AI-data-center buildout. A sector-wide selloff in highly leveraged AI infrastructure names pressured NBIS alongside CoreWeave and Oracle. AI infrastructure stocks sell off
• Negative Sentiment: COO Ophir Nave sold 500,000 shares, reportedly worth about $25 million and representing roughly half of his stake. Although the transaction occurred under a preset trading plan, its timing has raised fresh questions about insider confidence and added selling pressure. Nebius insider selling and valuation

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on NBIS shares. Truist Financial upgraded Nebius Group to a “strong-buy” rating in a report on Thursday, September 10th. Piper Sandler assumed coverage on shares of Nebius Group in a research report on Monday, August 3rd. They set a “neutral” rating and a $224.00 price target on the stock. Wall Street Zen raised shares of Nebius Group from a “strong sell” rating to a “sell” rating in a research note on Sunday, August 16th. Robert W. Baird lifted their price objective on shares of Nebius Group from $250.00 to $340.00 and gave the company an “outperform” rating in a report on Thursday, August 13th. Finally, Freedom Capital upgraded shares of Nebius Group from a “hold” rating to a “strong-buy” rating in a report on Monday, July 20th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Nebius Group has a consensus rating of “Moderate Buy” and an average target price of $245.69.

Nebius Group Stock Performance

The stock’s 50-day simple moving average is $223.90 and its 200 day simple moving average is $202.98. The company has a market capitalization of $55.59 billion, a PE ratio of -7,321.23 and a beta of 4.18. The company has a debt-to-equity ratio of 0.82, a quick ratio of 4.03 and a current ratio of 4.03.

Nebius Group (NASDAQ:NBIS) last released its quarterly earnings data on Thursday, August 13th. The company reported ($0.12) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.67) by $0.55. The business had revenue of $582.30 million during the quarter, compared to analysts’ expectations of $567.91 million. Nebius Group had a net margin of 4.55% and a negative return on equity of 6.03%. The company’s revenue for the quarter was up 454% on a year-over-year basis. During the same period in the previous year, the company earned $2.38 EPS. As a group, research analysts expect that Nebius Group N.V. will post -3.48 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Andrey Korolenko sold 29,090 shares of the stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $234.16, for a total value of $6,811,714.40. Following the transaction, the insider owned 522,248 shares in the company, valued at approximately $122,289,591.68. This represents a 5.28% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CRO Marc Boroditsky sold 7,000 shares of the firm’s stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $209.08, for a total value of $1,463,560.00. Following the sale, the executive directly owned 5,000 shares in the company, valued at $1,045,400. This trade represents a 58.33% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 166,616 shares of company stock valued at $39,753,038 over the last 90 days.

Hedge Funds Weigh In On Nebius Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Titleist Asset Management LLC increased its stake in Nebius Group by 17.7% in the third quarter. Titleist Asset Management LLC now owns 2,242 shares of the company’s stock valued at $529,000 after purchasing an additional 337 shares during the last quarter. Gradient Investments LLC lifted its position in shares of Nebius Group by 2.2% during the 3rd quarter. Gradient Investments LLC now owns 7,375 shares of the company’s stock worth $1,740,000 after buying an additional 159 shares during the last quarter. Fig Financial Advisory Services Inc. ADV purchased a new stake in shares of Nebius Group during the 3rd quarter worth approximately $663,000. Wealth Enhancement Trust Services Inc. boosted its holdings in shares of Nebius Group by 227.1% in the 3rd quarter. Wealth Enhancement Trust Services Inc. now owns 157 shares of the company’s stock valued at $37,000 after buying an additional 109 shares in the last quarter. Finally, Central Pacific Bank Trust Division acquired a new position in shares of Nebius Group in the 3rd quarter valued at $779,000. 21.90% of the stock is owned by institutional investors and hedge funds.

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.