Nebius Group (NASDAQ:NBIS) Shares Gap Up Following Earnings Beat

Nebius Group N.V. (NASDAQ:NBIS) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $193.23, but opened at $226.00. Nebius Group shares last traded at $230.9770, with a volume of 16,799,671 shares changing hands.

The company reported ($0.12) earnings per share for the quarter, beating the consensus estimate of ($0.67) by $0.55. Nebius Group had a net margin of 4.55% and a negative return on equity of 7.33%. The company had revenue of $582.30 million during the quarter, compared to the consensus estimate of $567.91 million. During the same quarter last year, the firm earned $2.38 earnings per share. The firm’s quarterly revenue was up 454% compared to the same quarter last year.

More Nebius Group News

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

• Positive Sentiment: Exceptional Q2 growth: Revenue rose 454% year over year to $582.3 million, exceeding analyst expectations, while AI-cloud revenue increased roughly 500% and annualized run-rate revenue reached approximately $3 billion. Nebius beats quarterly revenue estimates as AI demand fuels growth
• Positive Sentiment: Strong demand visibility: Nebius reportedly has a backlog exceeding $40 billion, rising contracted-power guidance of 5 gigawatts and four large AI customer agreements, supporting expectations for substantial future capacity growth. Nebius Surges 34% Post Q2: Will $40B Backlog Power Further Growth?
• Positive Sentiment: Improved funding model: Customer prepayments, cheaper debt financing and an asset-light capacity strategy could reduce the capital burden of expanding AI infrastructure. Management is also keeping some 2027 capacity uncommitted to preserve pricing power. Nebius Has Found a New Way to Finance AI Infrastructure
• Positive Sentiment: Expansion continues: Nebius and Vantage Data Centers agreed to deploy NVIDIA-powered AI infrastructure in Wales, expanding the company’s presence in the UK and addressing regional demand for domestic compute capacity. Vantage Data Centers and Nebius Expand UK AI Infrastructure

Analyst Ratings Changes

NBIS has been the topic of a number of recent analyst reports. Weiss Ratings downgraded shares of Nebius Group from a “hold (c)” rating to a “hold (c-)” rating in a report on Tuesday. Citizens Jmp boosted their price objective on shares of Nebius Group from $175.00 to $270.00 and gave the company a “market outperform” rating in a report on Thursday, May 14th. Morgan Stanley increased their price objective on shares of Nebius Group from $126.00 to $144.00 and gave the company an “equal weight” rating in a research report on Thursday, May 14th. Freedom Capital upgraded shares of Nebius Group from a “hold” rating to a “strong-buy” rating in a report on Monday, July 20th. Finally, Wolfe Research initiated coverage on shares of Nebius Group in a research report on Thursday, April 16th. They issued a “peer perform” rating for the company. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, Nebius Group has a consensus rating of “Moderate Buy” and an average target price of $222.71.

Insider Buying and Selling at Nebius Group

In other Nebius Group news, insider Andrey Korolenko sold 33,871 shares of the firm’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $235.45, for a total transaction of $7,974,926.95. Following the completion of the transaction, the insider owned 551,338 shares in the company, valued at $129,812,532.10. This trade represents a 5.79% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Sanchez Maria Del Dado Alonso sold 1,509 shares of the firm’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $276.20, for a total transaction of $416,785.80. Following the completion of the transaction, the chief financial officer directly owned 12,672 shares of the company’s stock, valued at approximately $3,500,006.40. This trade represents a 10.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 136,310 shares of company stock worth $32,569,613.

Institutional Trading of Nebius Group

Several hedge funds and other institutional investors have recently bought and sold shares of NBIS. Orbis Allan Gray Ltd boosted its stake in shares of Nebius Group by 12.4% during the 2nd quarter. Orbis Allan Gray Ltd now owns 17,651,930 shares of the company’s stock worth $976,681,000 after purchasing an additional 1,949,708 shares during the period. BlackRock Inc. grew its holdings in shares of Nebius Group by 16.0% in the second quarter. BlackRock Inc. now owns 11,531,270 shares of the company’s stock worth $3,184,591,000 after purchasing an additional 1,593,684 shares during the last quarter. Jennison Associates LLC boosted its position in Nebius Group by 134.3% in the 2nd quarter. Jennison Associates LLC now owns 3,983,899 shares of the company’s stock valued at $1,100,233,000 after buying an additional 2,283,676 shares during the period. Morgan Stanley raised its stake in shares of Nebius Group by 35.2% during the fourth quarter. Morgan Stanley now owns 3,704,659 shares of the company’s stock valued at $310,099,000 after acquiring an additional 964,984 shares in the last quarter. Finally, Accel Leaders 4 Associates L.P. purchased a new position in Nebius Group during the 2nd quarter worth $1,012,097,322,000. Hedge funds and other institutional investors own 21.90% of the company’s stock.

Nebius Group Trading Down 1.6%

The firm has a market capitalization of $64.53 billion, a P/E ratio of -8,498.50 and a beta of 4.23. The stock has a 50-day simple moving average of $221.54 and a two-hundred day simple moving average of $167.36. The company has a current ratio of 8.33, a quick ratio of 8.33 and a debt-to-equity ratio of 1.16.

Nebius Group Company Profile

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.