TLDR
- Nebius Group (NBIS) declined 13.1% on Friday, hitting a low of $88.40 before finishing at $91.19
- Q4 EPS of -$0.69 fell short of the -$0.42 consensus; revenue of $227.7M missed the $246M projection
- Q4 capital expenditure reached approximately $2.06B, sparking investor concerns about cash burn
- The decline was worsened by fellow neocloud firm CoreWeave’s (CRWV) weak earnings, which pulled down the entire sector
- Analysts continue to hold an average “Moderate Buy” recommendation with a $143.22 mean price target
Nebius Group (NBIS) experienced a difficult Friday, ending the session down 13.1% at $91.19 after dropping to a low of $88.40. Shares had finished the prior day at $104.88.
Trading volume revealed significant activity. Approximately 22.8 million shares were traded — about 68% higher than the typical daily average of 13.6 million.
The decline followed NBIS’s Q4 earnings report on February 12th, which fell short of Wall Street expectations across several metrics.
The company recorded an EPS loss of $0.69, missing the consensus forecast of a $0.42 loss by $0.27. Revenue totaled $227.7 million, falling short of analyst projections of $246 million.
While that alone unsettled investors, the expenditure figures drew particular scrutiny.
NBIS disclosed capital expenditures of roughly $2.06 billion for Q4. The firm’s plans for multi-billion dollar annual spending moving forward have triggered concerns about financing and immediate cash consumption.
Sector Pressure From CoreWeave
The sell-off didn’t occur in a vacuum. Fellow neocloud provider CoreWeave (NASDAQ: CRWV) plunged as much as 21.9% on the same day following its own underwhelming earnings release.
Both firms compete in the same market — purchasing GPUs and leasing AI computing power to hyperscalers and AI startups. When one falters, the other typically follows suit.
This has developed into a recurring trend. These equities are closely monitored, poorly comprehended by the general market, and extremely reactive to any adverse developments in the AI infrastructure sector.
The stock carries a beta of 3.90, indicating its high volatility compared to the broader market.
Analyst Views Still Mostly Positive
Even after the sell-off, Wall Street sentiment hasn’t shifted to bearish. Among 11 analysts tracking the stock, two rate it Strong Buy, seven rate it Buy, one rates it Hold, and one rates it Sell.
The mean price target stands at $143.22 — significantly higher than Friday’s closing price. Morgan Stanley launched coverage in January with an Equal Weight rating and $126 target. Freedom Capital raised its rating to Strong Buy earlier this month.
However, not all analysts are bullish. Both Wall Street Zen and Weiss Ratings have cut their ratings to Sell in recent months.
CICC Research initiated coverage in November with an Outperform rating and $143 price objective.
The shares’ 50-day moving average is $95.00, while the 200-day moving average is $95.95. Market capitalization stands at roughly $22.96 billion.
Analysts project revenue of $3.35 billion for 2026, which would mark a 531% year-over-year increase.
The firm maintains cloud partnerships with Meta and Microsoft, which analysts believe bolster its long-term revenue prospects.
For the current fiscal year, analysts anticipate a loss of $1.10 per share.
Institutional investors own 21.90% of the shares, with several funds gradually increasing their holdings in recent quarters.
