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

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

Key Stories Impacting 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.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on NBIS shares. Weiss Ratings cut Nebius Group from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, January 15th. Citigroup began coverage on Nebius Group in a research report on Monday, March 16th. They set a “buy” rating and a $169.00 price objective for the company. Compass Point began coverage on Nebius Group in a research note on Wednesday, February 18th. They set a “buy” rating and a $150.00 price objective for the company. DA Davidson increased their target price on Nebius Group from $150.00 to $200.00 and gave the stock a “buy” rating in a research report on Monday, March 16th. Finally, Morgan Stanley initiated coverage on Nebius Group in a research note on Thursday, January 15th. They issued an “equal weight” rating and a $126.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $157.09.

Nebius Group Trading Down 4.9%

The firm has a market capitalization of $25.39 billion, a P/E ratio of -69.05 and a beta of 4.02. The business’s 50 day moving average is $100.11 and its two-hundred day moving average is $101.16. The company has a quick ratio of 6.57, a current ratio of 3.08 and a debt-to-equity ratio of 0.89.

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. State Street Corp lifted its position in Nebius Group by 2,391.3% in the fourth quarter. State Street Corp now owns 3,219,326 shares of the company’s stock worth $269,474,000 after purchasing an additional 3,090,103 shares during the period. Capital Research Global Investors bought a new position in Nebius Group during the 4th quarter valued at $231,635,000. Fred Alger Management LLC increased its position in shares of Nebius Group by 33.4% during the 3rd quarter. Fred Alger Management LLC now owns 10,132,279 shares of the company’s stock valued at $1,137,551,000 after purchasing an additional 2,536,832 shares during the period. Accel Leaders 3 Associates L.P. acquired a new position in shares of Nebius Group during the 4th quarter valued at $188,496,000. Finally, Qube Research & Technologies Ltd bought a new stake in shares of Nebius Group in the 3rd quarter worth $238,511,000. 21.90% of the stock is currently owned by institutional investors.

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.