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

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

Key Headlines Impacting Nebius Group

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

Analysts Set New Price Targets

A number of research firms have recently commented on NBIS. Citigroup raised their price objective on Nebius Group from $278.00 to $324.00 and gave the stock a “buy” rating in a report on Friday, August 14th. Weiss Ratings downgraded shares of Nebius Group from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, August 11th. Robert W. Baird upped their price target on shares of Nebius Group from $250.00 to $340.00 and gave the stock an “outperform” rating in a research report on Thursday, August 13th. Citizens Jmp increased their price target on Nebius Group from $175.00 to $270.00 and gave the company a “market outperform” rating in a report on Thursday, May 14th. Finally, Zacks Research lowered Nebius Group from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $226.00.

Nebius Group Price Performance

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 quick ratio of 4.03, a current ratio of 4.03 and a debt-to-equity ratio of 0.82. The company has a market cap of $53.36 billion, a PE ratio of -7,027.99 and a beta of 4.23.

Nebius Group (NASDAQ:NBIS) last released its quarterly earnings results on Thursday, August 13th. The company reported ($0.12) earnings per share (EPS) for the quarter, topping 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 6.03%. The firm had revenue of $582.30 million for the quarter, compared to the consensus estimate of $567.91 million. During the same quarter in the previous year, the firm posted $2.38 EPS. The firm’s quarterly revenue was up 454% on a year-over-year basis. As a group, analysts forecast that Nebius Group N.V. will post -4.24 earnings per share for the current year.

Insider Activity

In other news, CTO Danila Shtan sold 16,937 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 $3,987,816.65. Following the transaction, the chief technology officer owned 274,763 shares of the company’s stock, valued at approximately $64,692,948.35. This trade represents a 5.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Charles E. Ryan sold 50,000 shares of the business’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $265.53, for a total value of $13,276,500.00. Following the completion of the sale, the director directly owned 272,533 shares of the company’s stock, valued at approximately $72,365,687.49. This represents a 15.50% 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 186,506 shares of company stock worth $46,264,387 over the last ninety days.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of NBIS. California State Teachers Retirement System raised its stake in 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 worth $17,167,661,000 after acquiring an additional 61,894,404 shares during the period. Orbis Allan Gray Ltd boosted its stake in Nebius Group by 12.4% in the second 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 period. BlackRock Inc. boosted its stake in Nebius Group by 16.0% in the second quarter. BlackRock Inc. now owns 11,531,270 shares of the company’s stock valued at $3,184,591,000 after acquiring an additional 1,593,684 shares during the period. Situational Awareness LP bought a new position in shares of Nebius Group during the second quarter valued at approximately $1,232,895,000. Finally, Jennison Associates LLC lifted its holdings in shares of Nebius Group by 134.3% in the 2nd quarter. Jennison Associates LLC now owns 3,983,899 shares of the company’s stock worth $1,100,233,000 after purchasing an additional 2,283,676 shares during the last quarter. 21.90% of the stock is owned by institutional investors and hedge funds.

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.