Nebius (NBIS) Plunges 13% After Earnings Miss and Massive Capex Spend

Nebius Group N.V., NBIS

Volume metrics painted a picture of heightened investor activity. Approximately 22.8 million shares traded hands — representing a 68% surge compared to the typical daily volume of 13.6 million.

The sharp decline followed NBISs February 12th fourth-quarter earnings release that fell short of analyst projections across key metrics.

The neocloud provider reported a per-share loss of $0.69, substantially wider than the Streets forecast of a $0.42 deficit — representing a $0.27 shortfall. Top-line performance also underwhelmed, with revenue reaching $227.7 million versus the $246 million consensus.

While the earnings disappointment initially triggered selling, the investment spending figures ultimately amplified concerns.

The company disclosed capital expenditures totaling roughly $2.06 billion during Q4. Managements outlook for sustained multi-billion dollar annual investments has prompted investor scrutiny regarding financing strategies and short-term liquidity management.

Sector Pressure From CoreWeave

The NBIS decline wasnt an isolated incident. Competing neocloud provider CoreWeave (NASDAQ: CRWV) plunged up to 21.9% the same session following its own earnings disappointment.

Both enterprises compete in an identical market segment — acquiring GPU infrastructure and leasing AI computing resources to hyperscalers and emerging artificial intelligence companies. Market sentiment tends to correlate between these players.

This dynamic has emerged as a recurring theme. These equities attract intense scrutiny, remain opaque to mainstream investors, and demonstrate acute sensitivity to adverse developments within the AI infrastructure ecosystem.

NBIS exhibits a beta coefficient of 3.90, underscoring its pronounced volatility relative to broader market movements.

Analyst Views Still Mostly Positive

Notwithstanding Fridays retreat, Street sentiment remains constructive. Among 11 analysts tracking 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 Fridays closing level. Morgan Stanley launched coverage in January with an Equal Weight stance and $126 target. Freedom Capital elevated its recommendation to Strong Buy this month.

Skepticism exists in certain quarters. Both Wall Street Zen and Weiss Ratings have recently downgraded shares to Sell.

CICC Research initiated coverage last November with an Outperform recommendation and $143 price objective.

Technical indicators show the 50-day moving average at $95.00, while the 200-day moving average rests at $95.95. The companys market capitalization approximates $22.96 billion.

Street forecasts project 2026 revenue at $3.35 billion, implying year-over-year expansion of 531%.

Strategic cloud collaborations with Meta and Microsoft underpin analyst confidence in the long-term revenue trajectory.

For the ongoing fiscal period, consensus estimates anticipate a $1.10 per-share loss.

Institutional ownership accounts for 21.90% of outstanding shares, with multiple funds gradually increasing their allocations in recent reporting periods.

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