TLDR
- Shares of Nebius Group (NBIS) plummeted 13.1% on Friday, hitting an intraday low of $88.40 before settling at $91.19
- Fourth-quarter earnings per share of -$0.69 underperformed analyst expectations of -$0.42; sales of $227.7M missed the $246M consensus
- Fourth-quarter capex totaled approximately $2.06B, sparking investor anxiety over cash consumption rates
- Weakness intensified as competitor CoreWeave’s (CRWV) lackluster results pulled down the entire neocloud infrastructure space
- Wall Street maintains a consensus “Moderate Buy” stance with a mean price objective of $143.22
Nebius Group (NBIS) experienced a challenging trading session Friday, shedding 13.1% to finish at $91.19 after touching $88.40 at its lowest point. Shares had ended Thursday at $104.88.
Volume activity painted a picture of intense investor sentiment. Approximately 22.8 million shares traded hands — representing a 68% surge compared to the typical daily average of 13.6 million.
The decline followed NBIS’s February 12th release of fourth-quarter financial results that fell short of Street expectations across key metrics.
The AI infrastructure provider delivered an earnings per share loss of $0.69 versus the analyst consensus calling for a $0.42 loss — representing a shortfall of $0.27. Top-line results of $227.7 million came in beneath the $246 million forecast.
While the earnings miss concerned investors, the capital spending figures generated even greater unease.
NBIS disclosed capital expenditures totaling roughly $2.06 billion during the fourth quarter. Management’s guidance for continued multi-billion dollar annual investments has sparked debate regarding funding strategies and short-term liquidity dynamics.
Sector Pressure From CoreWeave
The NBIS decline occurred alongside broader sector weakness. Competitor neocloud provider CoreWeave (NASDAQ: CRWV) plunged as much as 21.9% during the same session following its own disappointing quarterly report.
Both companies compete in the same market segment — acquiring GPUs and leasing AI computing infrastructure to cloud hyperscalers and artificial intelligence ventures. Negative developments affecting one player frequently impact the other.
This correlation has emerged as a recurring theme. These equities attract significant attention, remain imperfectly understood by mainstream investors, and demonstrate heightened sensitivity to adverse developments within the AI infrastructure ecosystem.
NBIS exhibits a beta coefficient of 3.90, underscoring the stock’s pronounced volatility compared to broader market movements.
Analyst Views Still Mostly Positive
Notwithstanding Friday’s selloff, the analyst community maintains a generally constructive outlook. Among 11 firms covering the name, two rate it Strong Buy, seven assign Buy ratings, one maintains Hold, and one recommends Sell.
The consensus price objective stands at $143.22 — substantially above Friday’s closing level. Morgan Stanley launched coverage in January with an Equal Weight recommendation and $126 target. Freedom Capital elevated the stock to Strong Buy earlier this month.
Not all voices agree, however. Both Wall Street Zen and Weiss Ratings have downgraded shares to Sell in recent months.
CICC Research initiated coverage in November with an Outperform rating and $143 price objective.
The equity’s 50-day moving average registers at $95.00, while the 200-day moving average sits at $95.95. Current market capitalization approximates $22.96 billion.
Analyst projections call for revenue of $3.35 billion in 2026, implying year-over-year expansion of 531%.
The firm maintains cloud infrastructure partnerships with Meta and Microsoft, relationships that analysts cite as underpinning the long-term revenue outlook.
For the current fiscal period, the Street anticipates a per-share loss of $1.10.
Institutional ownership represents 21.90% of outstanding shares, with multiple funds gradually increasing positions in recent quarters.
Remember: Preserve all tokens like [[EMBED_0]], [[IMG_0]], [[LINK_START_0]], [[LINK_END_0]], [[SCRIPT_0]], [[FIGURE_0]] etc. exactly as they appear. These are placeholders for embeds, images, and links that must not be changed.
