Nebius Group N.V. (NBIS) Down 18.7% — Is This the Moment to Unload?
Nebius Group N.V. (NBIS) is under heavy pressure this Thursday, last changing hands at $125.83 on the NASDAQ. That is a $28.86 drop from the prior close of $154.69 and one of the steepest single-session declines in the stock's recent trading history. The selloff extends a deep retracement. NBIS now sits roughly 58.0% below its 52-week high of $299.86, reached on June 22, 2026, which means the stock has given back more than half its value in less than five months.
Volume is running at roughly 47.12 million shares against a 90-day average of about 21.33 million, or about 2.2 times normal turnover with the session still open. Selling at that scale points to broad repositioning in the name rather than isolated profit-taking.
Why Nebius Group N.V. Price is Moving Lower
The pressure comes from Nebius's revised outlook, not its Q3 results. Revenue for the quarter reached $980.8 million, up 571% year over year and ahead of the roughly $907.5 million LSEG estimate. Adjusted earnings came in at $0.30 per share against a consensus loss of $0.61. On a GAAP basis, the company lost $37.5 million, or $0.13 per share, which is narrower than the $119.6 million loss a year earlier.
The problem was guidance. Management narrowed its 2026 revenue outlook to $3.0 billion to $3.2 billion from the prior $3.0 billion to $3.4 billion range. That puts the outlook below $3.35 billion estimate. The company attributed the shortfall to third-party data-center capacity that has been delayed into the first half of 2027. Its target for reaching $7 billion in annualized revenue also moved from December to February.
The spending revisions troubled investors even more. Nebius raised its 2026 capital-spending guidance to about $27 billion from the previous $20 billion to $25 billion range. It also forecast $40 billion to $45 billion for 2027, far above the $28.77 billion analysts had expected. The company's 2027 revenue outlook of $12 billion to $13 billion roughly matches FactSet's $12.09 billion estimate. That leaves investors facing a business that needs to spend considerably more to reach about the same revenue, and to reach it later.
A broader AI-infrastructure selloff added to the damage. Nvidia (NVDA) shares fell 8.2% after CEO Jensen Huang's resignation. CoreWeave, Nebius's closest publicly traded peer in GPU cloud, fell 9.1%, and the Philadelphia semiconductor index lost 1.3%. That backdrop left little appetite for a capital-intensive AI story carrying fresh timing risk.
The selling looks specific to AI rather than the Communication Services sector as a whole. Sector peers Skydance Corporation (SKYD) and Take-Two Interactive Software (TTWO) slipped only 2.47% and 2.22%, respectively. Nebius's 18.66% decline is roughly double CoreWeave's, which supports the view that the revenue delay and spending forecast are the main reasons it is underperforming.
What is the Nebius Group N.V. Rating - Should I Sell?
Weiss Ratings assigns NBIS a D rating. Current recommendation is Sell. The rating reflects a company growing revenue at extraordinary speed while still producing very little profit, at a stock price that has proven highly unstable.
The clearest strength is the balance sheet, which is rated Excellent on the Solvency Index. For a company now guiding to as much as $45 billion in capital spending in 2027, that rating matters. Nebius currently has the financial footing to fund an aggressive buildout without immediate distress. That cushion is the main thing keeping the overall rating from sliding further.
Where the picture becomes more difficult is in operating results. Revenue growth of 454.04% would normally suggest a strong Growth Index, yet the Weak rating there reflects how little of that expansion has reached the bottom line. Earnings per share stand at -$0.18, and the forward P/E of -878.92 shows the market is not pricing in meaningful profits any time soon. Today's guidance cut, tied to capacity Nebius does not control, adds a new layer of uncertainty to even the top-line trajectory.
The same gap between scale and profit explains the Weak Efficiency Index. A 0.60% ROE and a 3.12% profit margin are thin returns for a company deploying tens of billions of dollars in capital. The rating is unlikely to improve until those returns catch up with spending.
The Fair rating on the Total Return Index captures a stock that has delivered meaningful gains over the measurement period, though much of that has unwound since the June peak. The Weak Volatility Index is easy to explain on a day like this. An 18.66% single-session drop, driven by a guidance revision and a spending increase, and a decline of nearly 58% from the 52-week high are exactly the swings that rating is designed to capture.
Within the Communication Services sector, Nebius sits alongside Skydance Corporation (SKYD, D) and Charter Communications, Inc. (CHTR, D). It ranks slightly ahead of Take-Two Interactive Software, Inc. (TTWO, D-) and Roblox Corporation (RBLX, D-), and behind REA Group Limited (RPGRF, D+). None of these comparisons offers much reassurance, since the peer group as a whole sits in Sell territory.
About Nebius Group N.V.
Nebius Group N.V. (NBIS) is a Communication Services company headquartered in Amsterdam, formed from the international businesses that remained after the restructuring of Yandex. Its core operation is Nebius AI Cloud, a full-stack platform built for artificial intelligence workloads. The platform offers large-scale GPU clusters, managed infrastructure, and developer tools that AI labs and enterprises use to train and run models. Nebius operates its own data-center capacity in Finland and supplements it with colocation and third-party facilities in Europe and the United States, the same third-party capacity at the center of today's guidance revision.
Beyond the cloud business, the group holds several other AI-adjacent ventures. Toloka provides data-labeling and evaluation services used to develop generative AI models. TripleTen runs an education platform that retrains adults for technology careers. Avride develops autonomous driving systems and sidewalk delivery robots. The company also holds an equity stake in ClickHouse, the open-source database developer. These holdings give Nebius some optionality outside GPU infrastructure, although the cloud segment drives the investment case and the bulk of revenue.
Nebius's competitive position rests on in-house engineering talent and a software layer designed specifically for AI workloads rather than adapted from general-purpose cloud services. It also benefits from capacity commitments with large customers, including a multi-year agreement with Microsoft. Those advantages put Nebius among the fastest-growing independent providers in the AI cloud market. They also tie its results closely to GPU supply, data-center construction schedules, and the willingness of capital markets to fund a very expensive buildout.
Investor Outlook
Nebius Group N.V. (NBIS) carries a Weiss Rating of D (Sell), and today's combination of delayed revenue, sharply higher spending plans, and a stock nearly 58% off its high argues for caution. Investors should watch whether the delayed third-party capacity comes online in the first half of 2027, whether the company hits its revised February target for $7 billion in annualized revenue, and how it funds a 2027 capital budget of $40 billion to $45 billion without eroding its Excellent solvency profile. See full rankings of all D-rated Communication Services stocks inside the Weiss Stock Screener.
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