Nebius Group Shares Drop Following CoreWeave's Disappointing Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NBIS?
Source: Fool
- Stock Volatility: Nebius Group shares fell by 14.9%, mirroring CoreWeave's 21.9% decline, reflecting market concerns over the emerging neocloud sector, where both companies are growing rapidly but incurring significant losses.
- Industry Context: As a new concept in AI cloud computing, Nebius and CoreWeave purchase GPUs and rent out computing capacity to hyperscalers and AI startups, achieving triple-digit revenue growth but also facing substantial losses.
- Market Reaction: Nebius's earnings report earlier this month disappointed the market, leading to increased stock volatility as investors remain uncertain about how to value these high-risk companies.
- Future Outlook: Analysts expect Nebius's revenue to grow by 531% to $3.35 billion by 2026, indicating faster growth than CoreWeave, and if it can maintain this triple-digit growth, the stock may attract more investors.
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Analyst Views on NBIS
Wall Street analysts forecast NBIS stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 104.880
Low
130.00
Averages
164.20
High
211.00
Current: 104.880
Low
130.00
Averages
164.20
High
211.00
About NBIS
Nebius Group NV is a Netherlands-based infrastructure company operating in the technology industry. The Company is engaged in developing a portfolio of artificial intelligence-related technology assets. It is involved in creating an artificial intelligence-centric player to integrate the essential elements of artificial intelligence development with infrastructure, data and advisory globally. It offers products and services such as a cloud platform for artificial intelligence-related workloads, development team services for autonomous vehicles, development of generative artificial intelligence. Nebius builds full-stack infrastructure to service the growth of the global AI industry, including GPU clusters, cloud platforms and tools and services for developers. Company is developing three other businesses that operate under their own brands: Toloka AI, TripleTen and Avride.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nebius Group Reports 479% Revenue Growth and $275M Acquisition
- Significant Revenue Growth: Nebius Group reported a remarkable 479% revenue growth in its latest earnings report, indicating strong market performance and rapid expansion capabilities, which suggests substantial potential in the AI infrastructure sector.
- Strategic Acquisition: The company made a strategic acquisition of $275 million to enhance its market share in agentic AI infrastructure, positioning itself to transition from a GPU provider to a critical AI infrastructure supplier.
- Broad Market Outlook: Should AI agents become central to enterprise workflows, Nebius could unlock massive long-term growth potential, attracting investors willing to tolerate volatility and further enhancing its market position.
- Increased Investor Confidence: With a clear strategic direction and rapid revenue growth, investor confidence in Nebius has significantly increased, likely leading to more capital inflows and driving stock prices upward.
See More
U.S. Markets Declined on Friday; CoreWeave Suffered the Largest Loss
- Stock Market Decline: U.S. stock indexes experienced a decline on Friday, with the S&P 500 dropping 1.05%.
- Index Performance: The Dow Jones Industrial Average fell by 0.92%, while the Nasdaq Composite decreased by 0.43%.
See More
Nebius Group Shares Drop Following CoreWeave's Disappointing Earnings Report
- Stock Volatility: Nebius Group shares fell by 14.9%, mirroring CoreWeave's 21.9% decline, reflecting market concerns over the emerging neocloud sector, where both companies are growing rapidly but incurring significant losses.
- Industry Context: As a new concept in AI cloud computing, Nebius and CoreWeave purchase GPUs and rent out computing capacity to hyperscalers and AI startups, achieving triple-digit revenue growth but also facing substantial losses.
- Market Reaction: Nebius's earnings report earlier this month disappointed the market, leading to increased stock volatility as investors remain uncertain about how to value these high-risk companies.
- Future Outlook: Analysts expect Nebius's revenue to grow by 531% to $3.35 billion by 2026, indicating faster growth than CoreWeave, and if it can maintain this triple-digit growth, the stock may attract more investors.
See More
CoreWeave Reports Widening Losses Amid AI Cloud Uncertainty
- Widening Losses: CoreWeave's Q4 report reveals a widening loss, leading to decreased market confidence and increased volatility expectations for its stock, which could impact investor sentiment negatively.
- Market Reaction: Shares of Nebius Group fell 14.9% in sympathy with CoreWeave's disappointing earnings, indicating a strong correlation between the two companies in the emerging AI cloud sector, raising investor concerns about the associated risks.
- Uncertain Industry Outlook: While Nebius is projected to achieve a remarkable 531% revenue growth to $3.35 billion by 2026, it must also demonstrate progress on profitability to gain investor trust and interest in its stock.
- Investor Caution: Despite the immense potential of the AI cloud computing market, both companies are grappling with significant losses, prompting investors to exercise caution when considering Nebius, especially as it did not make the list of top recommended stocks.
See More
Financial Comparison Between Nebius and CoreWeave
- Market Performance: On Friday, shares of Amsterdam-based Nebius Group N.V. (NBIS) fell over 13%, primarily influenced by a decline in rival CoreWeave Inc. (CRWV), indicating market sensitivity towards AI infrastructure providers.
- Capital Expenditure Plans: CoreWeave forecasts capital expenditures of $30 billion to $35 billion for 2026, significantly up from $14.9 billion in 2025, and this announcement led to a drop in its stock price on Friday, reflecting concerns about its financial health.
- Debt Level Comparison: As of December 31, 2025, CoreWeave's long-term debt stands at $14.67 billion, while Nebius has $4.1 billion in long-term debt, which, despite being a notable increase from near-zero last year, remains significantly lower than CoreWeave's, showcasing a more robust financial structure.
- Market Sentiment: On Stocktwits, retail sentiment around NBIS is bullish, with users suggesting that CoreWeave's dip presents an incredible buying opportunity, while some users label Nebius as the 'winner' in comparison to CoreWeave, reflecting confidence in Nebius's prospects.
See More
Nebius: A Potential AI Cloud Computing Stock
- Market Performance: Nebius stock is one of the hottest on the market, despite a 14.12% drop today, with a current price of $90.07 and a market cap of approximately $26 billion, reflecting strong investor interest in its future growth.
- Growth Expectations: Nebius is projected to increase its annual revenue from $1.25 billion in 2025 to between $7 billion and $9 billion in 2026, indicating rapid expansion potential in the AI computing infrastructure sector.
- Business Model Shift: Nebius is fully pivoting to AI-first cloud computing by renting existing data center space and building its own to meet the surging demand for AI computing, offering a full-stack solution to support developers.
- Industry Competition: While Nebius shows strong growth in the AI cloud computing space, it still lags behind major tech companies like Amazon, whose AWS generated $129 billion in sales over the past 12 months, highlighting the intense competition in the market.
See More
Nebius Group Reports 479% Revenue Growth and $275M Acquisition
- Significant Revenue Growth: Nebius Group reported a remarkable 479% revenue growth in its latest earnings report, indicating strong market performance and rapid expansion capabilities, which suggests substantial potential in the AI infrastructure sector.
- Strategic Acquisition: The company made a strategic acquisition of $275 million to enhance its market share in agentic AI infrastructure, positioning itself to transition from a GPU provider to a critical AI infrastructure supplier.
- Broad Market Outlook: Should AI agents become central to enterprise workflows, Nebius could unlock massive long-term growth potential, attracting investors willing to tolerate volatility and further enhancing its market position.
- Increased Investor Confidence: With a clear strategic direction and rapid revenue growth, investor confidence in Nebius has significantly increased, likely leading to more capital inflows and driving stock prices upward.
See More
U.S. Markets Declined on Friday; CoreWeave Suffered the Largest Loss
- Stock Market Decline: U.S. stock indexes experienced a decline on Friday, with the S&P 500 dropping 1.05%.
- Index Performance: The Dow Jones Industrial Average fell by 0.92%, while the Nasdaq Composite decreased by 0.43%.
See More
Nebius Group Shares Drop Following CoreWeave's Disappointing Earnings Report
- Stock Volatility: Nebius Group shares fell by 14.9%, mirroring CoreWeave's 21.9% decline, reflecting market concerns over the emerging neocloud sector, where both companies are growing rapidly but incurring significant losses.
- Industry Context: As a new concept in AI cloud computing, Nebius and CoreWeave purchase GPUs and rent out computing capacity to hyperscalers and AI startups, achieving triple-digit revenue growth but also facing substantial losses.
- Market Reaction: Nebius's earnings report earlier this month disappointed the market, leading to increased stock volatility as investors remain uncertain about how to value these high-risk companies.
- Future Outlook: Analysts expect Nebius's revenue to grow by 531% to $3.35 billion by 2026, indicating faster growth than CoreWeave, and if it can maintain this triple-digit growth, the stock may attract more investors.
See More
CoreWeave Reports Widening Losses Amid AI Cloud Uncertainty
- Widening Losses: CoreWeave's Q4 report reveals a widening loss, leading to decreased market confidence and increased volatility expectations for its stock, which could impact investor sentiment negatively.
- Market Reaction: Shares of Nebius Group fell 14.9% in sympathy with CoreWeave's disappointing earnings, indicating a strong correlation between the two companies in the emerging AI cloud sector, raising investor concerns about the associated risks.
- Uncertain Industry Outlook: While Nebius is projected to achieve a remarkable 531% revenue growth to $3.35 billion by 2026, it must also demonstrate progress on profitability to gain investor trust and interest in its stock.
- Investor Caution: Despite the immense potential of the AI cloud computing market, both companies are grappling with significant losses, prompting investors to exercise caution when considering Nebius, especially as it did not make the list of top recommended stocks.
See More
Financial Comparison Between Nebius and CoreWeave
- Market Performance: On Friday, shares of Amsterdam-based Nebius Group N.V. (NBIS) fell over 13%, primarily influenced by a decline in rival CoreWeave Inc. (CRWV), indicating market sensitivity towards AI infrastructure providers.
- Capital Expenditure Plans: CoreWeave forecasts capital expenditures of $30 billion to $35 billion for 2026, significantly up from $14.9 billion in 2025, and this announcement led to a drop in its stock price on Friday, reflecting concerns about its financial health.
- Debt Level Comparison: As of December 31, 2025, CoreWeave's long-term debt stands at $14.67 billion, while Nebius has $4.1 billion in long-term debt, which, despite being a notable increase from near-zero last year, remains significantly lower than CoreWeave's, showcasing a more robust financial structure.
- Market Sentiment: On Stocktwits, retail sentiment around NBIS is bullish, with users suggesting that CoreWeave's dip presents an incredible buying opportunity, while some users label Nebius as the 'winner' in comparison to CoreWeave, reflecting confidence in Nebius's prospects.
See More
Nebius: A Potential AI Cloud Computing Stock
- Market Performance: Nebius stock is one of the hottest on the market, despite a 14.12% drop today, with a current price of $90.07 and a market cap of approximately $26 billion, reflecting strong investor interest in its future growth.
- Growth Expectations: Nebius is projected to increase its annual revenue from $1.25 billion in 2025 to between $7 billion and $9 billion in 2026, indicating rapid expansion potential in the AI computing infrastructure sector.
- Business Model Shift: Nebius is fully pivoting to AI-first cloud computing by renting existing data center space and building its own to meet the surging demand for AI computing, offering a full-stack solution to support developers.
- Industry Competition: While Nebius shows strong growth in the AI cloud computing space, it still lags behind major tech companies like Amazon, whose AWS generated $129 billion in sales over the past 12 months, highlighting the intense competition in the market.
See More
