TLDR
- Nebius Group (NBIS) stock rose 3.6% in pre-open trading Monday from a $165.47 close.
- Truist reiterated a Buy rating with a $355 price target after Friday’s near 12% drop.
- Nebius launched a $10 million program for European AI developers with NVIDIA and Accel.
- CoreWeave debt worries and a Gartner warning weighed on neocloud names last week.
- The stock remains far below its 50-day average of $223.57 and its 52-week high of $299.86.
Nebius Group (NBIS) stock rose 3.6% in pre-open trading on Monday. It followed a previous close of $165.47.
That close came after a near 12% drop on Friday, October 16. The stock lost roughly 21% over the prior week.
Friday’s slide tied to a broad selloff in AI infrastructure names. The Nasdaq fell 2% and the S&P 500 dropped 1% that session.
On Monday, the Nasdaq was up 1.1% and the S&P 500 was up 0.6%. That gave AI names a lift after a rough stretch.
Truist Steps In
Truist reiterated Buy ratings on Nebius and CoreWeave in a note on Sunday evening. It set a $355 price target on NBIS, more than double the pre-market price.
The firm said the collapse of the Firmus IPO had rattled neocloud investors. It argued this was not a sign of weakness for AI cloud providers with contracted backlogs.
Truist also called Nebius’s projected 4.5x 2028 EV/Sales multiple justified. It pointed to above-average expected revenue growth through that year.
Nebius also announced a $10 million program for European AI developers. It offers compute grants, capital access and community resources, built with NVIDIA and Accel.
Director Arne Grimme bought 148 units of the stock at $169.99. The purchase came under a pre-arranged Rule 10b5-1 plan and was small.
What Weighed on the Stock
Debt worries at CoreWeave spread across the AI cloud group. Investors asked how GPU providers can pay for fast expansion.
A Gartner warning that most neocloud companies may not survive on their own added to the selling. The market’s Fear & Greed reading also moved toward “Extreme Fear.”
Insiders have sold 151,230 units of the stock, worth about $36.8 million, in the last 90 days. CEO Arkadiy Volozh sold 37,778 at $234.16 on October 1, and CTO Danila Shtan sold 14,546 at the same price.
Nebius trades below its 50-day average of $223.57 and its 200-day average of $206.66. Its 52-week low is $73.52.
Last quarter, revenue hit $582.3 million, up 454% from a year earlier. That topped estimates of $567.91 million, and the loss of $0.12 per share beat the expected loss of $0.67.
Analysts give the stock a “Moderate Buy” consensus with an average target of $245.69. Of 22 analysts, 15 rate it Buy or Strong Buy, five say Hold and two say Sell.
Cyndeo Wealth Partners raised its Nebius position by 1,180% in the third quarter, to about $2.45 million. Institutions own 21.9% of the company.
As of Monday’s pre-open, Nebius was up 3.6% from its $165.47 close. The stock sits well below its 52-week high of $299.86.
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