Nebius (NBIS) Stock Drops 17% as Meta Threatens Its Core Business

TLDR

• Nebius Group (NBIS) stock dropped 17% on Wednesday, trading as low as $228.17, with volume surging 85% above average
• The sell-off was triggered by a Bloomberg report that Meta is building a cloud infrastructure business that could compete with neocloud providers like Nebius
• Despite the drop, Nebius last quarter posted revenue of $399 million — up 684% year over year — and beat EPS estimates by $0.54
• Wall Street holds a “Moderate Buy” consensus with 9 Buy and 6 Hold ratings; Bank of America has a $280 price target
• Insiders have sold over $124 million worth of stock in the past 90 days, including the CTO and CRO

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Nebius Group (NBIS) Stock Falls 17% as Meta Cloud Report Spooks Neocloud Investors

Nebius Group N.V., NBIS

Nebius Group (NBIS) stock fell 17% on Wednesday, dropping as low as $228.17 before closing around $229.18. The prior close was $276.17. Volume hit over 30 million, about 85% above the daily average.

The trigger was a Bloomberg report that Meta Platforms is planning to sell access to AI computing power and models — including raw GPU capacity. That directly overlaps with what neocloud providers like Nebius and CoreWeave do.

CoreWeave also fell more than 6% on the same report.

The concern isn’t just new competition. Meta is already one of the largest buyers of GPU compute. If it starts selling capacity instead of just consuming it, that changes the supply picture for the whole sector.

Nebius and others in the neocloud space have been riding strong tailwinds from AI infrastructure demand. Wednesday’s move showed how quickly sentiment can shift on competition fears.

Strong Fundamentals, But Valuation In Question

Despite the sell-off, the underlying business is growing fast. Nebius reported $399 million in revenue for its most recent quarter — up 684% year over year. It beat the earnings per share consensus by $0.54, reporting a loss of $0.23 against expectations of a $0.77 loss.

The company’s customer pipeline has been growing at a record pace, and demand for AI infrastructure remains strong. But some analysts had already flagged the stock as stretched after its big run-up heading into earnings.

NBIS has a 50-day moving average of $215.92 and a 200-day moving average of $142.48. Even after Wednesday’s drop, it was trading well above both.

The stock has a price-to-earnings ratio of 73.93 and a market cap of around $58 billion. Its beta of 4.03 reflects how volatile it tends to be — and Wednesday was a reminder of that.

Analyst Ratings and Insider Activity

Wall Street’s view is mixed but still leans positive. Nine analysts have Buy ratings and six have Hold ratings, giving NBIS a “Moderate Buy” consensus. The average price target is $203.25.

Bank of America has a $280 target and a Buy rating, set in early June. BNP Paribas Exane started coverage in June with a Neutral rating and a $255 target. Morgan Stanley has an Equal Weight rating with a $144 target.

On the insider side, the picture is less encouraging. The CTO sold around $3.7 million in stock on June 4th, a 5.1% reduction in his position. The CRO sold roughly $3 million on June 2nd, cutting his stake by 28.6%.

In total, insiders have sold over $124 million worth of stock in the past 90 days.

Despite this, large institutions have been adding to their positions. Orbis Allan Gray, Fred Alger Management, and Morgan Stanley all increased their holdings in recent quarters.

Analysts on average expect Nebius to post a full-year EPS of -$1.91.