Key Takeaways
- Nebius Group (NBIS) declined 13.1% on Friday, hitting an intraday low of $88.40 and settling at $91.19
- Fourth quarter EPS registered at -$0.69 versus analyst expectations of -$0.42; revenue reached $227.7M against forecasts of $246M
- Capital expenditure for Q4 totaled approximately $2.06B, triggering investor concerns about cash management
- CoreWeave’s (CRWV) weak earnings report intensified selling pressure across the neocloud industry
- Wall Street analysts continue recommending the stock with a “Moderate Buy” consensus and $143.22 average target price
Nebius Group (NBIS) experienced significant downward pressure on Friday, ending the session 13.1% lower at $91.19 after touching $88.40 during intraday trading. The previous session had concluded at $104.88.
Trading activity surged notably. Approximately 22.8 million shares traded hands — representing a 68% increase compared to the typical daily volume of 13.6 million.
The decline followed NBIS’s February 12th release of fourth quarter financial results that fell short of Wall Street projections across key metrics.
The company recorded a per-share loss of $0.69, while analysts had anticipated a $0.42 loss — representing a shortfall of $0.27. Revenue reached $227.7 million, trailing analyst projections of $246 million.
These figures alone created investor unease, yet the capital expenditure numbers generated even greater concern.
NBIS disclosed capital expenditure of roughly $2.06 billion during Q4. The company’s plans call for continued multi-billion dollar annual investments, prompting questions regarding financing strategies and immediate-term cash consumption.
Industry-Wide Impact From CoreWeave Results
The NBIS decline occurred alongside broader industry weakness. Fellow neocloud provider CoreWeave (NASDAQ: CRWV) plummeted as much as 21.9% during the same trading session following its own underwhelming earnings announcement.
Both enterprises compete in identical markets — acquiring GPUs and leasing AI computing infrastructure to hyperscalers and artificial intelligence startups. Weakness in one typically spreads to the other.
This correlation has emerged as a recurring theme. These equities attract significant attention, remain poorly understood by mainstream investors, and demonstrate heightened sensitivity to adverse developments in AI infrastructure.
NBIS features a beta of 3.90, illustrating the substantial volatility the stock exhibits compared to broader market indices.
Wall Street Maintains Optimistic Outlook
The recent price decline hasn’t shifted Wall Street sentiment toward bearishness. Among 11 analysts tracking the stock, two assign Strong Buy ratings, seven recommend Buy, one rates it Hold, and one suggests Sell.
The consensus price target stands at $143.22 — substantially above Friday’s closing level. Morgan Stanley launched coverage in January with an Equal Weight recommendation and $126 target. Freedom Capital elevated its rating to Strong Buy this month.
Some dissenting voices exist. Wall Street Zen and Weiss Ratings have both downgraded the shares to Sell during recent months.
CICC Research initiated coverage last November with an Outperform designation and $143 price objective.
The stock’s 50-day moving average stands at $95.00, while the 200-day moving average registers at $95.95. Market capitalization approximates $22.96 billion.
Analysts project revenue of $3.35 billion for 2026, representing 531% year-over-year expansion.
The company maintains cloud infrastructure agreements with Meta and Microsoft, which analysts cite as supporting its extended-term revenue prospects.
For the present fiscal year, analysts anticipate a per-share loss of $1.10.
Institutional ownership comprises 21.90% of outstanding shares, with multiple funds gradually increasing their positions during recent quarters.
