Nebius (NBIS) Stock Drops Despite New Cloud Launch and Microsoft Partnership

TLDR

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Nebius Group stock fell 2.2% to $123.04 during Thursday trading despite recent positive developments
The company launched Aether AI Cloud 3.0, an enterprise-focused platform with enhanced security features
Nebius reported quarterly revenue of $105.10 million, beating analyst expectations of $95.60 million
Microsoft partnership commits $17.4 billion to AI infrastructure over five years
Analysts upgraded the stock to hold rating, with BWS Financial setting a $130 price target

Nebius Group shares declined 2.2% during Thursday’s mid-day trading session. The stock closed at $123.04, down from its previous close of $125.83.

Nebius Group N.V., NBIS

The decline came despite several recent developments that would typically support a stock price. Trading volume remained steady at 14,025,864 shares, matching the average session volume of 14,078,608 shares.

The company recently unveiled its Aether AI Cloud 3.0 platform. This new offering targets enterprise customers with secure and scalable AI services. The platform includes validated security certifications and comprehensive governance tools.

The launch follows a major partnership announcement with Microsoft. The deal involves $17.4 billion in AI infrastructure spending over the next five years. This represents a massive commitment to building out GPU clusters and cloud platforms.

Analyst Ratings Shift to More Cautious Stance

Several analysts recently changed their ratings on Nebius Group. Seaport Res Ptn upgraded the stock to a hold rating on September 15th. Wall Street Zen moved from a sell to a hold rating on September 30th.

BWS Financial took a more bullish stance. The firm lifted its price target from $90 to $130 and maintained a buy rating. This represents a 44% increase in their target price.

Goldman Sachs reaffirmed its buy rating with a $120 price target. The consensus among analysts now stands at buy, with two strong buy ratings, five buy ratings, and two hold ratings. The average price target sits at $91.20.

The stock saw a premarket bump of 2.54% on the Aether AI Cloud 3.0 news. Shares reached $129.03 before the regular trading session began. However, those gains didn’t hold through the day.

Financial Performance Shows Mixed Results

Nebius reported its most recent quarterly earnings on August 7th. The company posted an earnings per share loss of $0.38, which beat analyst expectations of a $0.41 loss.

Revenue came in at $105.10 million for the quarter. This topped the consensus estimate of $95.60 million by about 10%. The company posted a net margin of 99.34%, though its operating margin stands at negative 197.22%.

The three-year revenue growth rate shows a decline of 68.3%. Analysts predict the company will post a loss of $1.10 per share for the current fiscal year.

The stock carries a market capitalization of $29.01 billion. Its price-to-earnings ratio sits at negative 215.86, while the beta stands at 3.45, indicating high volatility.

Nebius maintains strong liquidity metrics. The company has a current ratio of 14.70 and a quick ratio of 14.70. Its debt-to-equity ratio is 0.31, showing conservative leverage.

The stock’s 50-day moving average is $91.32. Its 200-day moving average sits at $56.93. Both figures are well below the current trading price.

Institutional ownership of the stock stands at 21.90%. Several hedge funds recently adjusted their positions. IFP Advisors purchased a new $25,000 stake in the first quarter.

Signaturefd LLC increased its position by 125% in the second quarter. The firm now holds 450 shares valued at $25,000. SJS Investment Consulting purchased a $31,000 stake in the second quarter.

The Aether AI Cloud 3.0 platform emphasizes enterprise security and developer efficiency. It provides tools specifically designed for critical business operations. The Microsoft partnership will fund GPU cluster expansion and cloud platform development over five years.

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