Nebius Group (NASDAQ:NBIS) Stock Price Up 1.4% – Still a Buy?
by Mitch Edgeman · The Markets DailyShares of Nebius Group N.V. (NASDAQ:NBIS – Get Free Report) were up 1.4% during mid-day trading on Tuesday . The company traded as high as $246.61 and last traded at $236.12. Approximately 15,191,372 shares were traded during trading, a decline of 15% from the average session volume of 17,802,424 shares. The stock had previously closed at $232.80.
Trending Headlines about Nebius Group
Here are the key news stories impacting Nebius Group this week:
- Positive Sentiment: Nebius joined the FTSE All-World Index, potentially increasing institutional awareness and demand for the stock. The inclusion follows substantial year-to-date and one-year gains despite its recent retreat from earlier highs. FTSE All-World Index inclusion article
- Positive Sentiment: Recent analysis highlights Nebius’s capacity auction and planned October 1 price increases as evidence of strong demand and near-term pricing power. Higher compute prices could improve revenue and margins if customers continue accepting elevated rates. AI compute expansion and pricing article
- Positive Sentiment: Bullish coverage points to a major improvement in operating performance, with operating margins moving from deeply negative in the first quarter toward breakeven in the second quarter. The company’s auction-based pricing model and higher-margin services could strengthen unit economics. Nebius pricing model rating upgrade
- Positive Sentiment: Some analysts view the 20% pullback from the high as a potential buying opportunity, arguing that Nebius remains one of the fastest-growing AI infrastructure companies. Nebius pullback analysis
- Neutral Sentiment: Comparisons with CoreWeave and other “neocloud” providers emphasize significant growth potential but also heavy capital requirements, financing needs and dependence on continued AI infrastructure demand. CoreWeave versus Nebius analysis
- Neutral Sentiment: Chief Revenue Officer Marc Boroditsky sold shares in multiple transactions under a pre-arranged Rule 10b5-1 plan. The sales may weigh on sentiment, although their scheduled nature limits their value as a signal about management’s outlook. SEC insider transaction filing
- Negative Sentiment: Rothschild & Co. Redburn initiated coverage with a Sell rating and an $84 price target, citing the risk that falling GPU prices could erode Nebius’s pricing power and compress its valuation. Rothschild Redburn Sell rating
Analysts Set New Price Targets
A number of brokerages recently commented on NBIS. DA Davidson reaffirmed a “neutral” rating and issued a $175.00 target price on shares of Nebius Group in a research report on Thursday, August 13th. Zacks Research lowered Nebius Group from a “strong-buy” rating to a “hold” rating in a report on Friday, July 31st. Northland Securities raised their price objective on Nebius Group from $248.00 to $410.00 and gave the company an “outperform” rating in a research note on Monday, July 20th. Weiss Ratings downgraded Nebius Group from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, September 9th. Finally, BNP Paribas Exane initiated coverage on Nebius Group in a research report on Tuesday, June 2nd. They set a “neutral” rating and a $255.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $232.20.
Check Out Our Latest Analysis on Nebius Group
Nebius Group Price Performance
The firm has a market cap of $59.74 billion, a price-to-earnings ratio of -7,868.04 and a beta of 4.23. The company has a debt-to-equity ratio of 0.82, a quick ratio of 4.03 and a current ratio of 4.03. The business has a 50 day simple moving average of $212.54 and a 200-day simple moving average of $192.07.
Nebius Group (NASDAQ:NBIS – Get Free Report) last issued its quarterly earnings data on Thursday, August 13th. The company reported ($0.12) EPS for the quarter, topping analysts’ consensus estimates of ($0.67) by $0.55. The firm had revenue of $582.30 million during the quarter, compared to analyst estimates of $567.91 million. Nebius Group had a negative return on equity of 6.03% and a net margin of 4.55%.The company’s revenue for the quarter was up 454% on a year-over-year basis. During the same period in the previous year, the company posted $2.38 EPS. Equities research analysts expect that Nebius Group N.V. will post -3.76 earnings per share for the current year.
Insider Activity at Nebius Group
In related news, CRO Marc Boroditsky sold 22,386 shares of the company’s stock in a transaction on Wednesday, July 15th. The stock was sold at an average price of $197.00, for a total transaction of $4,410,042.00. Following the completion of the sale, the executive owned 22,386 shares in the company, valued at approximately $4,410,042. This represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Arkadiy Volozh sold 46,627 shares of the stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $235.45, for a total value of $10,978,327.15. Following the completion of the sale, the chief executive officer directly owned 821,662 shares of the company’s stock, valued at $193,460,317.90. The trade was a 5.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 182,587 shares of company stock valued at $43,618,456 over the last 90 days.
Institutional Trading of Nebius Group
Several institutional investors and hedge funds have recently made changes to their positions in the company. Situational Awareness LP bought a new position in shares of Nebius Group during the second quarter valued at about $1,232,895,000. Accel Leaders 4 Associates L.P. purchased a new position in Nebius Group during the second quarter worth about $1,012,097,322. Capital Research Global Investors bought a new stake in Nebius Group in the 4th quarter worth about $231,635,000. Jennison Associates LLC grew its position in Nebius Group by 134.3% in the 2nd quarter. Jennison Associates LLC now owns 3,983,899 shares of the company’s stock worth $1,100,233,000 after purchasing an additional 2,283,676 shares in the last quarter. Finally, Accel Leaders 3 Associates L.P. bought a new stake in Nebius Group in the 2nd quarter worth about $621,908,604. Hedge funds and other institutional investors own 21.90% of the company’s stock.
About Nebius Group
Nebius Group N.V. (NASDAQ: NBIS) is a technology company focused on artificial intelligence infrastructure and related services. Its principal business is Nebius AI, a cloud platform that provides computing, storage, networking and managed infrastructure designed to support the development and deployment of AI applications, including access to accelerated computing resources.
The company also operates or develops businesses in adjacent technology markets. These include Toloka, which provides data and evaluation services for machine-learning systems; TripleTen, an online education platform offering technology-focused training; and Avride, a developer of autonomous driving and delivery technologies.