Key Highlights NBIS shares declined 1.6% following a Q2 earnings report showing a loss of $0.68 per share, marginally above the consensus forecast of $0.67 Quarterly revenue skyrocketed 454%
Shares of Nebius Group (NBIS) retreated 1.6% during Thursday’s trading session, settling at $255.04 after touching an intraday bottom of $247.38. The downturn followed the release of second-quarter financial results that fell slightly short of analyst expectations.
The AI infrastructure company disclosed an adjusted loss of $0.68 per share compared to the Street’s projection of $0.67. This marginal one-cent shortfall dampened investor enthusiasm despite the stock’s impressive 34% rally in the prior session.
On the top line, however, results painted a dramatically different picture. The company generated $582.3 million in quarterly revenue, representing a remarkable 454% increase from the year-ago period and exceeding the $567.91 million consensus forecast. Management disclosed that annual recurring revenue has climbed to approximately $3 billion, with contracted backlog now topping $40 billion.
Market activity intensified significantly, with approximately 36 million shares traded throughout the session. This figure represented more than twice the typical daily volume of 17.8 million shares.
Bank of America analyst Tal Liani maintained his Buy recommendation while lifting his price objective to $310 from the previous $280 level. Liani emphasized the company’s Q2 EBITDA margins of 40.5%, which significantly exceeded the Street’s 27.8% projection, and observed that Nebius’ approach of selling capacity in closer proximity to actual deployment is enhancing unit economics.
The analyst further emphasized that standard 1-3 year agreements are producing $20-$25 million per megawatt in revenue, whereas abbreviated 3-6 month contracts designed for clients with urgent requirements are yielding $40-$50 million per megawatt.
Management reaffirmed its objective of achieving 800 MW to 1 GW of connected power by the conclusion of 2026, which helped alleviate certain investor apprehensions regarding capacity expansion at the Vineland location.
The company additionally unveiled a partnership with Vantage Data Centers to implement NVIDIA-powered AI infrastructure at a Newport, Wales facility, broadening its presence in the United Kingdom.
Not all market participants share the optimistic outlook. Michael Burry, celebrated for his prescient “Big Short” wager, revealed he augmented his short stake in NBIS at the $247 price point. In a Substack publication, he stated: “Nebius is what the top of a boom looks like.”
Burry expressed reservations about Nebius‘ elevated pricing structure on abbreviated contracts. He initially established a short position at approximately $212 per share.
Robert W. Baird elevated its price objective to $340 while maintaining an Outperform rating. DA Davidson occupies the opposite end of the spectrum, sustaining a Neutral stance with a $175 target.
Regarding insider transactions, CEO Arkadiy Volozh divested 46,627 shares on July 1st at an average execution price of $235.45, decreasing his stake by 5.37%. CFO Maria Del Dado Alonso Sanchez sold 1,509 shares on June 2nd at $276.20.
The aggregate Wall Street consensus stands at Moderate Buy, derived from seven Buy recommendations and four Hold ratings. The mean price objective of $260.20 indicates approximately 2% upside potential from present trading levels.
NBIS stock has surged roughly 205% on a year-to-date basis.
The post Nebius (NBIS) Stock Dips Despite Strong Q2 Revenue as BofA Ups Price Target to $310 appeared first on Blockonomi.
