NEBIUS (NBIS) shares plummeted 7.24% during pre-market trading, extending its pullback after a brief two-day rally.
The decline was fueled by a wave of cautious analyst commentary. Citigroup lowered its price target on the stock from $287 to $278, while Piper Sandler initiated coverage with a Neutral rating and a $224 price target, citing short-term uncertainty and a more cautious stance relative to competitor CoreWeave. The company is scheduled to report earnings on August 12, with consensus estimates projecting strong revenue growth of approximately 374% year-over-year, but an expected loss per share of -$0.67, leaving the timeline for profitability recovery in question.
Multiple headwinds, including the analyst downgrades and pre-earnings anxiety, converged to pressure the stock as investors weighed the potential for continued losses against the company's robust revenue growth trajectory.
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