Nebius Group (NASDAQ:NBIS) Trading Down 3.8% – Here’s Why

Nebius Group N.V. (NASDAQ:NBIS) traded down 3.8% on Monday . The stock traded as low as $201.89 and last traded at $210.91. 16,712,392 shares changed hands during trading, a decline of 8% from the average session volume of 18,170,076 shares. The stock had previously closed at $219.13.

Key Nebius Group News

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

• Positive Sentiment: Nebius reported explosive AI-cloud growth, with second-quarter cloud revenue up 514% year over year and total revenue reaching $582.3 million, ahead of analyst expectations. The results reinforce the company’s position as a rapidly growing alternative to CoreWeave. Nebius Group Just Posted 514% Revenue Growth
• Positive Sentiment: Commentary highlights hyperscaler partnerships reportedly worth tens of billions of dollars, supporting the long-term revenue outlook and suggesting Nebius may be able to expand without the heavier debt burden associated with some competitors. Forget CoreWeave This Is the AI Stock You Should Instead Be Buying
• Positive Sentiment: Soros Fund Management disclosed a new position of approximately 310,000 shares, valued at about $85.6 million, providing a favorable institutional-investor signal. Soros Fund Management Opened a New Position in Nebius
• Neutral Sentiment: Investors are weighing whether Nebius’s exceptional growth and contracted backlog justify its elevated valuation, particularly after a sharp weekly pullback. The debate creates both significant upside potential and heightened volatility. Is Nebius Overvalued or Digesting Debt for Something Bigger and Better?
• Negative Sentiment: The settlement of Nebius’s newly issued $5 billion convertible notes is creating a major supply overhang. Although conversion prices are roughly 40%–45% above the pricing reference, the financing increases dilution concerns and is weighing on the stock today. Nebius Raised $5 Billion in Convertible Notes

Wall Street Analyst Weigh In

A number of research firms have commented on NBIS. Citigroup lifted their price objective on shares of Nebius Group from $278.00 to $324.00 and gave the company a “buy” rating in a research note on Friday, August 14th. Wall Street Zen raised Nebius Group from a “strong sell” rating to a “sell” rating in a research note on Sunday, August 16th. Northland Securities upped their price objective on Nebius Group from $248.00 to $410.00 and gave the company an “outperform” rating in a research note on Monday, July 20th. Weiss Ratings downgraded Nebius Group from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, August 11th. Finally, Morgan Stanley boosted their target price on Nebius Group from $126.00 to $144.00 and gave the company an “equal weight” rating in a report on Thursday, May 14th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Nebius Group presently has a consensus rating of “Moderate Buy” and a consensus price target of $226.00.

Nebius Group Trading Down 3.8%

The firm has a market capitalization of $53.36 billion, a price-to-earnings ratio of -7,027.99 and a beta of 4.23. The business’s 50 day moving average price is $224.05 and its 200-day moving average price is $173.70. The company has a debt-to-equity ratio of 0.82, a current ratio of 4.03 and a quick ratio of 4.03.

Nebius Group (NASDAQ:NBIS) last announced its quarterly earnings data 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 company had revenue of $582.30 million for the quarter, compared to analyst estimates of $567.91 million. During the same quarter in the previous year, the company earned $2.38 EPS. The firm’s revenue for the quarter was up 454% compared to the same quarter last year. Equities analysts forecast that Nebius Group N.V. will post -4.24 EPS for the current fiscal year.

Insider Buying and Selling at Nebius Group

In related news, CTO Danila Shtan sold 16,937 shares of Nebius Group stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $235.45, for a total transaction of $3,987,816.65. Following the completion of the transaction, the chief technology officer directly owned 274,763 shares of the company’s stock, valued at approximately $64,692,948.35. The trade was a 5.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Arkadiy Volozh sold 46,627 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $235.45, for a total transaction of $10,978,327.15. Following the completion of the sale, the chief executive officer directly owned 821,662 shares in the company, valued at approximately $193,460,317.90. The trade was a 5.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 186,506 shares of company stock worth $46,264,387.

Hedge Funds Weigh In On Nebius Group

Several hedge funds have recently bought and sold shares of NBIS. California State Teachers Retirement System boosted its stake in shares of Nebius Group by 23,011.0% during the second quarter. California State Teachers Retirement System now owns 62,163,381 shares of the company’s stock valued at $17,167,661,000 after acquiring an additional 61,894,404 shares during the last quarter. Orbis Allan Gray Ltd lifted its holdings in Nebius Group by 12.4% in the 2nd quarter. Orbis Allan Gray Ltd now owns 17,651,930 shares of the company’s stock valued at $976,681,000 after purchasing an additional 1,949,708 shares in the last quarter. BlackRock Inc. lifted its stake in shares of Nebius Group by 16.0% during the second quarter. BlackRock Inc. now owns 11,531,270 shares of the company’s stock valued at $3,184,591,000 after buying an additional 1,593,684 shares during the period. Situational Awareness LP acquired a new stake in Nebius Group during the second quarter worth approximately $1,232,895,000. Finally, Jennison Associates LLC boosted its position in Nebius Group by 134.3% during the second quarter. Jennison Associates LLC now owns 3,983,899 shares of the company’s stock worth $1,100,233,000 after acquiring an additional 2,283,676 shares during the last quarter. Hedge funds and other institutional investors 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.