NEBIUS (NBIS) shares plummeted 5.02% during intraday trading on Wednesday, as the stock faced significant selling pressure.
The decline followed BNP Paribas initiating coverage on the AI infrastructure services firm with a Neutral rating and a $255 price target, which sits below the stock's recent trading level. The analyst team noted that NEBIUS's year-to-date surge of over 210% has compressed near-term upside potential, with current market pricing implying an overly optimistic scenario for persistently high compute rental rates and flawless execution.
Sentiment was further weighed down by a broad selloff in the Systems Software sector and prior cautious commentary from other firms like D.A. Davidson, which highlighted that the stock's significant premium, while justified, caps near-term gains.
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