Key Takeaways
- Shares of Nebius Group (NBIS) tumbled 13.1% on Friday, hitting an intraday low of $88.40 and settling at $91.19
- Fourth-quarter earnings per share of -$0.69 came in worse than the -$0.42 consensus, while revenue of $227.7M underperformed the $246M expectation
- Capital spending for Q4 reached approximately $2.06B, sparking investor worries about cash runway
- Sector-wide weakness intensified as CoreWeave (CRWV) reported disappointing results, pulling down neocloud stocks across the board
- Wall Street analysts continue to rate NBIS as a “Moderate Buy” on average, with a consensus price target of $143.22
Shares of Nebius Group (NBIS) endured a punishing session Friday, shedding 13.1% to finish at $91.19 after dipping to $88.40 earlier in the day. The previous close stood at $104.88.
Volume surged alongside the selloff. Approximately 22.8 million shares traded hands — representing a 68% increase over the typical daily volume of 13.6 million.
The sharp decline followed NBIS’s February 12th release of fourth-quarter financial results that failed to meet Street expectations across key metrics.
The company recorded a loss of $0.69 per share versus the anticipated loss of $0.42 — marking a $0.27 shortfall. Meanwhile, quarterly revenue registered at $227.7 million, trailing the $246 million analyst projection.
While the earnings miss certainly rattled shareholders, the real alarm bells centered on spending levels.
NBIS disclosed capital expenditures totaling roughly $2.06 billion for the quarter. With plans for continued multi-billion dollar annual investments ahead, concerns have mounted regarding funding strategies and the pace of cash consumption.
CoreWeave Earnings Drag Down Neocloud Names
The NBIS decline wasn’t an isolated event. Fellow neocloud provider CoreWeave (NASDAQ: CRWV) plummeted as much as 21.9% the same day following its own lackluster quarterly report.
Both firms compete in the same arena — purchasing GPUs and leasing AI computing infrastructure to hyperscalers and artificial intelligence companies. Negative sentiment toward one frequently spills over to the other.
This correlation has become increasingly evident. These equities attract significant attention, remain poorly understood by mainstream investors, and demonstrate heightened sensitivity to negative developments in AI infrastructure markets.
NBIS sports a beta coefficient of 3.90, underscoring its extreme price swings compared to broader market movements.
Wall Street Maintains Bullish Outlook
Notwithstanding Friday’s sharp selloff, analyst sentiment remains largely constructive. Among 11 analysts tracking the name, two rate it Strong Buy, seven assign a Buy rating, one rates it Hold, and one recommends Sell.
The consensus price target stands at $143.22 — substantially above Friday’s closing level. Morgan Stanley launched coverage in January with an Equal Weight stance and $126 target. Freedom Capital elevated the stock to Strong Buy earlier this month.
However, not all voices are optimistic. Wall Street Zen and Weiss Ratings have both downgraded NBIS to Sell in recent months.
CICC Research initiated coverage last November with an Outperform recommendation and $143 price objective.
The stock trades near its 50-day moving average of $95.00 and 200-day moving average of $95.95. Current market capitalization approximates $22.96 billion.
Analysts project 2026 revenue reaching $3.35 billion, implying dramatic year-over-year expansion of 531%.
The company maintains strategic cloud partnerships with Meta and Microsoft, relationships analysts cite as fundamental to its long-term revenue trajectory.
For the ongoing fiscal year, Wall Street forecasts a per-share loss of $1.10.
Institutional ownership stands at 21.90%, with multiple funds gradually increasing their positions over recent quarters.
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