Key Takeaways
- Nebius Group (NBIS) experienced a 13.1% decline on Friday, hitting an intraday low of $88.40 and settling at $91.19
- Fourth-quarter earnings per share of -$0.69 underperformed the -$0.42 consensus; revenue of $227.7M missed the $246M projection
- Fourth-quarter capital spending reached approximately $2.06B, sparking investor worries about cash consumption
- The decline intensified as CoreWeave’s (CRWV) weak results weighed on the broader neocloud industry
- Wall Street analysts continue to favor the stock with a consensus “Moderate Buy” and average target of $143.22
Nebius Group (NBIS) endured a challenging Friday session, shedding 13.1% to finish at $91.19 after touching $88.40 earlier in the day. The stock had ended Thursday’s trading at $104.88.
Volume figures highlighted the intensity of the move. Approximately 22.8 million shares were exchanged — about 68% higher than the 13.6 million daily average.
The decline followed NBIS’s February 12th fourth-quarter earnings release, which underwhelmed on several key metrics.
The firm recorded a per-share loss of $0.69 versus the Street’s expectation of a $0.42 loss — representing a $0.27 shortfall. Revenue totaled $227.7 million, falling below the anticipated $246 million.
While the earnings miss concerned market participants, the capital expenditure figures drew even sharper scrutiny.
NBIS disclosed roughly $2.06 billion in Q4 capital spending. With plans for continued multi-billion dollar annual investments, investors are questioning the company’s funding strategy and short-term liquidity position.
CoreWeave’s Results Weigh on Neocloud Stocks
The NBIS downturn wasn’t an isolated event. Fellow neocloud provider CoreWeave (NASDAQ: CRWV) plummeted as much as 21.9% the same day following its own lackluster earnings announcement.
Both firms operate in identical territory — acquiring GPUs and leasing AI computing power to major tech companies and artificial intelligence ventures. When one company disappoints, market sentiment typically affects the other.
This correlation has emerged as a recurring theme. These equities face intense scrutiny, limited broader market comprehension, and heightened reactivity to negative developments in the AI infrastructure landscape.
NBIS demonstrates a beta coefficient of 3.90, underscoring the stock’s significant volatility compared to the overall market.
Wall Street Maintains Constructive Outlook
The sharp decline hasn’t prompted analysts to abandon their optimistic stance. Among 11 analysts tracking the stock, two recommend Strong Buy, seven suggest Buy, one advises Hold, and one rates it Sell.
The consensus price objective stands at $143.22 — substantially above Friday’s closing price. Morgan Stanley launched coverage in January with an Equal Weight designation and $126 target. Freedom Capital elevated the stock to Strong Buy in early February.
However, not all research firms share this enthusiasm. Wall Street Zen and Weiss Ratings have both moved to Sell recommendations in recent months.
CICC Research initiated coverage in November with an Outperform rating and $143 price objective.
The equity’s 50-day moving average stands at $95.00, while the 200-day moving average rests at $95.95. The company’s market capitalization approximates $22.96 billion.
Analysts project 2026 revenue reaching $3.35 billion, implying 531% year-over-year expansion.
The company maintains cloud infrastructure agreements with Meta and Microsoft, which analysts believe bolster its long-term revenue prospects.
For the present fiscal year, the Street anticipates a $1.10 per-share loss.
Institutional ownership accounts for 21.90% of shares outstanding, with multiple funds gradually increasing their positions in recent reporting periods.
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