Key Takeaways
- Nebius Group (NBIS) experienced a 13.1% decline on Friday, reaching an intraday low of $88.40 and settling at $91.19
- Fourth-quarter earnings per share of -$0.69 underperformed versus the -$0.42 consensus; sales of $227.7M missed the $246M projection
- Fourth-quarter capex totaled approximately $2.06B, sparking investor worries about cash consumption
- Weakness in peer CoreWeave’s (CRWV) results contributed to sector-wide pressure on neocloud stocks
- Wall Street maintains a collective “Moderate Buy” stance with a mean price objective of $143.22
Shares of Nebius Group (NBIS) took a significant hit on Friday, declining 13.1% to finish at $91.19 after touching a session low of $88.40. The previous trading session had seen the stock close at $104.88.
The elevated trading activity was notable. Approximately 22.8 million shares were exchanged — representing a 68% surge above the typical daily volume of 13.6 million.
The sharp decline followed NBIS’s February 12th release of fourth-quarter financial results that fell short of Wall Street’s expectations across key metrics.
The firm reported a per-share loss of $0.69, overshooting the anticipated $0.42 loss by $0.27. Top-line revenue registered at $227.7 million, trailing the analyst consensus of $246 million.
While these misses concerned market participants, the capital expenditure figures particularly alarmed investors.
NBIS disclosed capital expenditures of roughly $2.06 billion for the fourth quarter. With plans for continued multi-billion dollar annual investments, concerns have emerged regarding financing strategies and short-term liquidity.
CoreWeave Weakness Spreads Across Neocloud Space
The NBIS decline wasn’t an isolated incident. Fellow neocloud provider CoreWeave (NASDAQ: CRWV) experienced a 21.9% plunge the same session following its own underwhelming quarterly report.
Both firms operate in an identical niche — acquiring GPUs and leasing AI computing infrastructure to major cloud providers and artificial intelligence ventures. Market sentiment tends to treat them as proxies for one another.
This correlation has become increasingly evident. These equities attract significant attention, remain poorly understood by mainstream investors, and demonstrate extreme sensitivity to any headwinds affecting the AI infrastructure ecosystem.
NBIS shows a beta coefficient of 3.90, illustrating the stock’s pronounced volatility compared to broader market movements.
Wall Street Consensus Remains Constructive
Notwithstanding Friday’s downturn, analyst sentiment hasn’t shifted negative. Among 11 analysts tracking the name, two assign a Strong Buy rating, seven recommend Buy, one suggests Hold, and one advises Sell.
The consensus price target 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.
However, skeptics exist. Both Wall Street Zen and Weiss Ratings have recently downgraded shares to Sell ratings.
CICC Research initiated coverage last November with an Outperform rating and $143 price objective.
The stock’s 50-day moving average stands at $95.00, while the 200-day moving average registers at $95.95. Current market capitalization approximates $22.96 billion.
Analyst projections call for 2026 revenue of $3.35 billion, implying year-over-year expansion of 531%.
The firm maintains strategic cloud collaborations with Meta and Microsoft, which analysts cite as fundamental support for sustained revenue growth.
For the ongoing fiscal year, consensus estimates anticipate a per-share loss of $1.10.
Institutional ownership represents 21.90% of outstanding shares, with multiple funds gradually increasing positions in recent reporting periods.
