Key Takeaways
- Nebius Group (NBIS) shares crashed 13.1% on Friday, reaching an intraday bottom of $88.40 before closing at $91.19
- Q4 results revealed a per-share loss of $0.69 compared to Wall Street’s expected -$0.42; revenue came in at $227.7M versus forecasts of $246M
- The company spent approximately $2.06B on capital expenditures during the quarter, raising concerns about cash management
- Neocloud peer CoreWeave (CRWV) also disappointed with its earnings, dragging down the entire sector
- Despite the selloff, analyst consensus remains at “Moderate Buy” with an average price target of $143.22
Shares of Nebius Group (NBIS) took a substantial hit on Friday, plummeting 13.1% to close at $91.19 after dipping as low as $88.40 during intraday trading. The stock had ended the prior session at $104.88.
Trading activity surged notably during the session. Volume reached approximately 22.8 million shares — a 68% jump over the average daily volume of 13.6 million shares.
The steep selloff came after NBIS unveiled its fourth-quarter earnings results on February 12th, which disappointed Wall Street on multiple fronts.
The neocloud infrastructure company posted a loss of $0.69 per share, significantly worse than analyst expectations for a $0.42 loss — missing by $0.27 per share. Revenue figures also came up short, registering $227.7 million against the consensus estimate of $246 million.
However, the earnings miss alone wasn’t the primary catalyst for investor concern.
The company revealed capital expenditures of approximately $2.06 billion for the fourth quarter. Management’s guidance pointing to continued multi-billion dollar annual infrastructure investments has raised questions about funding mechanisms and near-term cash flow dynamics.
CoreWeave Results Add Sector-Wide Pressure
The NBIS stock decline didn’t occur in isolation. Fellow neocloud operator CoreWeave (NASDAQ: CRWV) crashed as much as 21.9% during the same trading day after delivering its own disappointing quarterly results.
Both companies operate in the same niche — purchasing GPU hardware and providing AI computing capacity to hyperscale cloud providers and artificial intelligence startups. Investor sentiment frequently moves in tandem for these stocks.
This pattern has become increasingly apparent. These companies face heightened scrutiny, lack transparency familiar to retail investors, and show extreme sensitivity to negative news affecting the AI infrastructure landscape.
NBIS sports a beta of 3.90, highlighting its significant volatility compared to the overall market.
Wall Street Maintains Optimistic Outlook
Despite Friday’s sharp decline, analyst sentiment leans positive. Of the 11 analysts covering the stock, two rate it Strong Buy, seven give it a Buy rating, one holds a Hold position, and one recommends Sell.
The mean price target sits at $143.22 — well above Friday’s closing price. Morgan Stanley initiated coverage in January with an Equal Weight rating and $126 price target. Freedom Capital upgraded the stock to Strong Buy earlier this month.
Some analysts express caution. Wall Street Zen and Weiss Ratings have both recently downgraded shares to Sell.
CICC Research started coverage last November with an Outperform rating and $143 price target.
Technical analysis shows the stock’s 50-day moving average at $95.00, with the 200-day moving average sitting at $95.95. Market capitalization currently stands around $22.96 billion.
Analysts forecast 2026 revenue of $3.35 billion, representing year-over-year growth of 531%.
Cloud partnerships with major players including Meta and Microsoft support analyst optimism regarding future revenue potential.
For the current fiscal year, consensus estimates call for a loss of $1.10 per share.
Institutional investors hold 21.90% of shares outstanding, with several funds steadily building positions in recent quarters.
