Key Takeaways
- Nebius Group (NBIS) shares collapsed 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 analyst expectations of -$0.42; revenue came in at $227.7M versus $246M estimate
- The company invested roughly $2.06B in capital expenditures during the quarter, raising questions about cash position
- Broader neocloud weakness emerged as CoreWeave (CRWV) delivered disappointing results, triggering sector-wide selloff
- Analyst community maintains “Moderate Buy” rating with average price target of $143.22
Shares of Nebius Group (NBIS) endured a brutal trading session Friday, collapsing 13.1% to close at $91.19 after reaching a session low of $88.40. The stock had ended Thursday’s session at $104.88.
Trading activity surged significantly throughout the session. Volume reached approximately 22.8 million shares — a 68% increase above the stock’s average daily trading volume of 13.6 million.
The steep selloff came after NBIS released fourth-quarter financial results on February 12th that missed Wall Street expectations on multiple fronts.
The neocloud infrastructure company posted a loss of $0.69 per share, significantly worse than analyst estimates calling for a $0.42 loss — missing by $0.27. Revenue performance also disappointed, coming in at $227.7 million compared to consensus expectations of $246 million.
Beyond the initial earnings miss, investor anxiety intensified around the company’s capital investment figures.
Nebius revealed it spent approximately $2.06 billion on capital expenditures throughout the fourth quarter. Company guidance indicating continued multi-billion dollar annual spending has raised investor questions about funding mechanisms and near-term cash flow dynamics.
Contagion Effect From CoreWeave Weakness
The NBIS selloff didn’t occur in isolation. Rival neocloud infrastructure firm CoreWeave (NASDAQ: CRWV) crashed as much as 21.9% during the same trading session after releasing 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 across these names.
This correlation has become increasingly apparent. These stocks face heightened volatility, remain poorly understood by general investors, and show extreme sensitivity to negative news affecting the AI infrastructure space.
NBIS carries a beta of 3.90, indicating significant volatility compared to the overall market.
Wall Street Maintains Optimistic Stance
Despite Friday’s sharp downturn, analyst sentiment leans positive. Of 11 analysts covering the stock, two rate it Strong Buy, seven have Buy ratings, one holds a Hold rating, 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 target. Freedom Capital upgraded shares to Strong Buy earlier this month.
Some skepticism persists. Wall Street Zen and Weiss Ratings have both recently downgraded the stock to Sell.
CICC Research began coverage last November with an Outperform rating and $143 price target.
From a technical perspective, the 50-day moving average sits at $95.00, while the 200-day moving average is positioned at $95.95. The company carries a market capitalization of approximately $22.96 billion.
Analyst estimates project 2026 revenue reaching $3.35 billion, representing year-over-year growth of 531%.
Cloud infrastructure partnerships with Meta and Microsoft support analyst optimism regarding future revenue potential.
For the current fiscal year, consensus estimates predict a loss of $1.10 per share.
Institutional investors hold 21.90% of shares outstanding, with several funds incrementally building positions in recent quarters.
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