Nebius Group (NASDAQ:NBIS) Trading Down 5.9% – What’s Next?

Nebius Group N.V. (NASDAQ:NBIS)’s stock price dropped 5.9% during mid-day trading on Thursday . The company traded as low as $207.30 and last traded at $215.62. 24,693,826 shares changed hands during trading, an increase of 50% from the average session volume of 16,430,836 shares. The stock had previously closed at $229.18.

Key Stories Impacting Nebius Group

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

• Negative Sentiment: Meta’s cloud infrastructure ambitions sparked a selloff in Nebius and other AI cloud stocks, as investors worried a well-funded competitor could pressure future demand and pricing. Nebius (NBIS) Stock Plunges 17% on Meta’s Cloud Infrastructure Ambitions
• Negative Sentiment: BNP Paribas issued a fresh cautious note on Nebius and CoreWeave, adding to the pressure on AI cloud names and reinforcing fears that the sector’s valuations have gotten ahead of fundamentals. BNP Paribas Sends Fresh Message on CoreWeave and Nebius Stocks
• Neutral Sentiment: Coverage around Nebius this week focused on the tension between its strong revenue growth and its expensive valuation, suggesting the stock may stay volatile as investors debate whether the growth can justify the price. AI Fears Hit Nebius Stock, But Has the Growth Thesis Changed?
• Neutral Sentiment: Nebius also highlighted its AI Discovery Awards for healthcare and life sciences startups, a sign of continued product and ecosystem investment, but the announcement appears unlikely to offset the broader valuation and competition concerns. Nebius celebrates healthcare and life sciences innovators at expanded AI Discovery Awards

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on NBIS shares. DA Davidson downgraded shares of Nebius Group from a “buy” rating to a “neutral” rating and lifted their price target for the company from $200.00 to $250.00 in a research report on Monday, May 18th. Wolfe Research initiated coverage on Nebius Group in a research note on Thursday, April 16th. They set a “peer perform” rating on the stock. Wall Street Zen upgraded Nebius Group from a “strong sell” rating to a “sell” rating in a research note on Saturday, May 16th. BNP Paribas Exane started coverage on Nebius Group in a report on Tuesday, June 2nd. They issued a “neutral” rating and a $255.00 price objective for the company. Finally, Weiss Ratings upgraded Nebius Group from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, May 20th. Nine analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $203.25.

Nebius Group Stock Performance

The company has a current ratio of 8.33, a quick ratio of 8.33 and a debt-to-equity ratio of 1.16. The firm has a market capitalization of $54.56 billion, a P/E ratio of 69.56 and a beta of 4.10. The firm has a 50-day moving average of $219.69 and a two-hundred day moving average of $144.83.

Nebius Group (NASDAQ:NBIS) last released its earnings results on Thursday, May 14th. The company reported ($0.23) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.77) by $0.54. The firm had revenue of $399.00 million for the quarter, compared to analysts’ expectations of $375.13 million. Nebius Group had a negative return on equity of 9.11% and a net margin of 95.27%.The business’s quarterly revenue was up 684.0% on a year-over-year basis. On average, analysts anticipate that Nebius Group N.V. will post -1.91 EPS for the current year.

Insider Buying and Selling

In related news, CRO Marc Boroditsky sold 10,776 shares of Nebius Group stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $276.20, for a total transaction of $2,976,331.20. Following the sale, the executive directly owned 26,886 shares of the company’s stock, valued at approximately $7,425,913.20. The trade was a 28.61% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director John Wilson Iv Boynton sold 5,812 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $253.29, for a total transaction of $1,472,121.48. Following the transaction, the director owned 378,665 shares of the company’s stock, valued at approximately $95,912,057.85. This represents a 1.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 626,887 shares of company stock worth $124,696,143 in the last quarter.

Institutional Trading of Nebius Group

Hedge funds and other institutional investors have recently modified their holdings of the stock. Orbis Allan Gray Ltd lifted its stake in shares of 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 acquiring an additional 1,949,708 shares during the last quarter. Fred Alger Management LLC grew its position in Nebius Group by 33.4% during the 3rd quarter. Fred Alger Management LLC now owns 10,132,279 shares of the company’s stock worth $1,137,551,000 after acquiring an additional 2,536,832 shares during the last quarter. Jericho Capital Asset Management L.P. increased its holdings in Nebius Group by 55.7% in the 3rd quarter. Jericho Capital Asset Management L.P. now owns 4,607,497 shares of the company’s stock worth $517,284,000 after purchasing an additional 1,648,497 shares in the last quarter. Morgan Stanley increased its holdings in Nebius Group by 35.2% in the 4th quarter. Morgan Stanley now owns 3,704,659 shares of the company’s stock worth $310,099,000 after purchasing an additional 964,984 shares in the last quarter. Finally, Clear Street Group Inc. raised its position in Nebius Group by 95.0% in the fourth quarter. Clear Street Group Inc. now owns 3,511,656 shares of the company’s stock valued at $293,943,000 after purchasing an additional 1,710,924 shares during the last quarter. 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.