So, here's what's happening in the AI infrastructure world on a Friday morning: Nebius Group N.V. (NBIS) shares are taking a bit of a hit. It's not necessarily anything Nebius did wrong today; it's more about the mood in the neighborhood after one of its peers, CoreWeave Inc. (CRWV), handed in a report card that left investors feeling a bit mixed.

When sentiment sours on one key player in a hot sector like AI compute, it often drags down the whole group. That's the simple story behind Nebius's premarket slide.

CoreWeave's Report: The Good, The Bad, and The GPU

Let's unpack what CoreWeave, a company that rents out access to powerful Nvidia Corp. (NVDA) GPUs, actually reported. The headline numbers tell a story of explosive growth paired with persistent costs.

On the very good side: revenue. CoreWeave posted fourth-quarter sales of $1.57 billion, which not only beat Wall Street's estimate of $1.55 billion but also represents a more-than-doubling from the same period a year ago. That's the kind of hypergrowth investors dream about in the AI boom.

On the less-good side: profits. The company reported an adjusted loss of 56 cents per share. Analysts were expecting a loss of 50 cents. So, while sales are soaring, expenses are keeping pace. The company tallied $1.66 billion in operating expenses for the quarter and finished with about $3.13 billion in cash on hand.

It's a classic growth-stage narrative: burning cash to capture a massive market. But for traders on a Friday morning, that wider-than-expected loss was enough to cast a shadow over the sector.

Zooming Out: Nebius's Bigger Picture

Stepping back from today's premarket noise, Nebius's own chart tells a much more bullish story over the longer term. We're talking about a stock that is up a staggering 227.24% over the last 12 months. That's not a typo.

Technically, the stock is holding above all its major moving averages, which traders watch as signs of trend strength. It's sitting about 7.4% above its 20-day average and is essentially right on top of its 100-day average. More impressively, it's trading a hefty 24.5% above its 200-day simple moving average. That last bit suggests that despite any daily volatility, the long-term investor conviction here has been remarkably strong.

What's Next for Nebius? The Analyst Take and Upcoming Earnings

All eyes now turn to Nebius's own financial update, scheduled for May 19. The expectations set by analysts paint a picture similar to CoreWeave's: huge growth, but not yet profitability.

The consensus estimate is for a loss of 75 cents per share, which is actually larger than the loss of 39 cents per share it reported a year ago. On the top line, however, analysts are forecasting revenue to skyrocket to $343.32 million, up massively from $55.30 million a year prior.

One number that jumps out is the valuation: the stock trades at a P/E ratio of 915.0x. That's a sky-high number that signals investors are paying a huge premium for future growth expectations. It's the ultimate "growth over profits" bet.

And for the most part, Wall Street analysts are still making that bet. The consensus rating on the stock is a Buy, with an average price target of $150.63. Recent analyst actions show a generally optimistic crowd:

• Compass Point initiated coverage with a Buy rating and a $150 price target on February 18.
• BWS Financial maintains a Buy rating with a $130 target (as of February 17).
• Morgan Stanley was a bit more cautious, initiating with an Equal-Weight rating and a $126 target on January 15.

So, where does that leave us? In premarket trading Friday, Nebius Group shares were down 3.55% at $101.16, according to market data. It's a dip in a much larger upward trend, triggered by a competitor's messy-but-strong earnings report. The real test for Nebius's own story arrives in May.