Nebius Group N.V. (NBIS) shares took another hit Wednesday, falling nearly 3% in premarket trading as investors continued to flee high-growth artificial intelligence stocks. The stock closed down 8.37% on Tuesday and kept sliding before the opening bell, with Nasdaq futures down 0.68% and S&P 500 futures slipping 0.54%.
The selling pressure has been building since last week, following reports that Meta Platforms Inc. (META) is exploring an expansion into AI computing services. The move could turn the tech giant into a formidable competitor in the fast-growing neocloud market, spooking investors in companies like Nebius that provide AI cloud infrastructure.
Adding to the unease, Samsung Electronics Co., Ltd.'s (SSNLF) preliminary second-quarter results and reports that DeepSeek is developing its own AI inference chips have raised broader concerns about the pace of compute buildout, according to market data.
Technical Analysis: Trend Intact, But Momentum Fades
Despite the recent pullback, Nebius remains in a long-term uptrend. The stock currently trades 22% below its 20-day simple moving average (SMA) of $245.15 and 11.9% below its 50-day SMA of $216.99. However, it's still 14.8% above its 100-day SMA of $166.54 and a whopping 42.6% above its 200-day SMA of $134.06.
The moving-average structure is still constructive: the 20-day SMA sits above the 50-day SMA, which in turn is above the 200-day SMA. That's the classic sign of an uptrend, suggesting the broader trend is intact even if the near-term action looks ugly.
But momentum has clearly weakened. The MACD indicator remains below its signal line, and the histogram is negative — a sign that buying enthusiasm has evaporated. The next resistance level to watch is the 50-day SMA at $216.99. If selling continues, the 100-day SMA at $166.54 could act as key support, where buyers might step in.
Earnings and Analyst Outlook
The next big catalyst for Nebius is its earnings report, expected around Aug. 6, 2026. Wall Street is bracing for a loss of 73 cents per share on revenue of $576.67 million. That compares to a loss of 38 cents per share and revenue of $105.10 million in the same quarter last year — so revenue is growing fast, but losses are widening as the company invests heavily.
Analysts remain optimistic overall. The stock carries a consensus Buy rating with an average price target of $213.89. Recent analyst moves include:
- Bank of America: Buy, raised price target to $280 (June 8)
- BNP Paribas: Initiated at Neutral with a $255 target (June 2)
- DA Davidson: Neutral with a $250 target (May 18)
According to market data, Nebius scores highly on momentum but poorly on value — reflecting strong long-term price performance alongside a premium valuation. In other words, the market is pricing in a lot of future growth, which leaves the stock vulnerable to any hiccups.
Price Action: Nebius Group shares were down 2.81% at $189.70 in Wednesday's premarket session.
