Key Takeaways
- NBIS shares declined 31.1% during July yet maintain a 125% year-to-date gain
- A short position disclosure by Michael Burry caused a 13.29% intraday plunge
- First quarter revenue exploded from approximately $50M to $400M compared to last year
- The company secured $775M in debt financing mid-July following a $6.3B Q1 capital raise
- Second quarter financial results release is scheduled for Wednesday, Aug. 12
July proved challenging for Nebius Group (NBIS), an AI cloud infrastructure provider. The company experienced a 31.1% monthly decline, highlighted by a sharp 13.29% drop in a single trading session following news that prominent hedge fund manager Michael Burry had taken a short position.
Even with July’s setback, NBIS maintains impressive year-to-date performance, climbing 125% in 2026. Recent trading showed shares at $187.97, within a 52-week trading band of $62.01 to $299.86, while the company commands approximately $47 billion in market capitalization.
Burry’s short position disclosure intensified ongoing debates surrounding Nebius’ aggressive data center buildout strategy and whether its current stock price reflects realistic fundamentals.
Research from Simply Wall St calculates a fair value target of $245.43, implying potential undervaluation of roughly 22.6% from present levels. This projection depends substantially on Nebius maintaining its aggressive expansion trajectory in AI computing infrastructure.
Current trading multiples show NBIS at a P/E ratio of 66.1x—more than twice the 31.4x US Software industry benchmark and significantly above the 39.4x peer group average.
Explosive Revenue Trajectory
First quarter results demonstrated remarkable momentum, with revenue soaring from approximately $50 million to $400 million year-over-year. Such acceleration commands attention from market participants.
Nebius continues expanding its contracted power infrastructure. Capacity projections have grown dramatically from a baseline 1 GW last August to projections exceeding 4 GW currently. A significant milestone includes securing up to 1.2 GW of power infrastructure and real estate for a Pennsylvania-based AI facility.
However, aggressive expansion demands substantial capital deployment. The company invested approximately $2.5 billion during Q1 primarily on GPU hardware and related technology. Management identified escalating co-location expenses, operating lease obligations, and talent acquisition as primary cost factors.
Significant Capital Injection
Mid-July saw Nebius complete a $775 million debt financing round aimed at funding continued expansion initiatives. This followed an enormous $6.3 billion capital raise in Q1, comprising a $2 billion equity stake from Nvidia alongside $4.3 billion through convertible instruments.
The magnitude of capital expenditure presents a critical consideration: will revenue expansion match the aggressive spending trajectory?
Trading at approximately 14 times projected sales indicates premium valuation territory. Any indication of weakening customer demand for cloud capacity could trigger additional downward pressure on shares.
Market attention shifts decisively to Wednesday, Aug. 12, when Nebius unveils Q2 financial performance. Key metrics include compute capacity expansion, customer acquisition momentum, and whether Q1’s elevated cost structure has shown improvement.
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