TLDR
- NBIS stock fell 1.6% after reporting a Q2 loss of $0.68 per share, missing the $0.67 consensus estimate by $0.01
- Revenue jumped 454% year over year to $582.3 million, beating estimates, with annual recurring revenue hitting around $3 billion
- Bank of America raised its price target to $310, reiterating a Buy rating after the strong Q2 print
- Michael Burry added to his short position at $247, calling Nebius “what the top of a boom looks like”
- Wall Street holds a “Moderate Buy” consensus with an average price target of $260.20, implying modest 2% upside
Nebius Group (NBIS) stock dropped 1.6% on Thursday, closing at $255.04 after hitting a low of $247.38. The move came after the company reported Q2 earnings that narrowly missed Wall Street expectations.
The company posted a loss of $0.68 per share against a consensus estimate of $0.67. That one-cent miss was enough to take some wind out of the sails following a 34% surge the previous day.
Revenue told a different story. Nebius reported $582.3 million for the quarter, up 454% year over year and ahead of the $567.91 million estimate. Annual recurring revenue reached approximately $3 billion, and the company’s contracted backlog now exceeds $40 billion.
Trading volume jumped sharply, with roughly 36 million shares changing hands during the session. That was more than double the average daily volume of 17.8 million.
Bank of America Raises Price Target
Bank of America analyst Tal Liani reiterated a Buy rating and raised his price target to $310 from $280. Liani pointed to Q2 EBITDA margins of 40.5%, well above the Street’s 27.8% estimate, and noted that Nebius’ strategy of selling capacity closer to actual deployment is improving unit economics.
Liani also highlighted that core 1-3 year contracts are generating $20-$25 million per megawatt, while shorter 3-6 month contracts for customers with immediate needs are commanding $40-$50 million per megawatt.
The company maintained its connected power target of 800 MW to 1 GW by end of 2026, which helped ease some investor concerns around capacity rollout at its Vineland facility.
Nebius also announced a deal with Vantage Data Centers to deploy NVIDIA-powered AI infrastructure at a Newport, Wales campus, expanding its UK footprint.
Michael Burry Adds to His Short
Not everyone is convinced. Michael Burry, known for his “Big Short” trade, disclosed he added to his short position in NBIS at $247. In a Substack post, he wrote: “Nebius is what the top of a boom looks like.”
Burry flagged concerns about Nebius‘ high pricing on short-term contracts. He originally disclosed a short position at around $212 per share.
Robert W. Baird raised its price target to $340 with an Outperform rating. DA Davidson sits on the other end, holding a Neutral rating with a $175 target.
On the insider front, CEO Arkadiy Volozh sold 46,627 shares on July 1st at an average price of $235.45, reducing his ownership by 5.37%. CFO Maria Del Dado Alonso Sanchez sold 1,509 shares on June 2nd at $276.20.
The overall Wall Street consensus sits at Moderate Buy, based on seven Buy ratings and four Holds. The average price target of $260.20 points to roughly 2% upside from current levels.
NBIS stock is up around 205% year to date.
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