Nebius Stock Has Fallen About 40% From Its Record. Here's Why I'm Still Waiting to Buy
Shares of Nebius Group (NBIS) have dropped about 40% from their record high set in June, with much of the decline occurring recently in October alone. Despite this drop, the stock has still nearly doubled for investors who bought early in January. The Motley Fool notes that while there is no new company-specific news causing concern—Nebius reaffirmed its guidance and made minor announcements—the broader market seems to be souring on AI cloud providers like CoreWeave. The article highlights Nebius' strong revenue growth, which has surged from $228 million in late 2025 to over $582 million in the second quarter of 2026. However, management's ambitious forecast for full-year revenue between $3 billion and $3.4 billion means it must nearly double its first-half performance in the second half alone. The company is investing heavily in new capacity but has swung into a net loss due to reduced investment gains compared to last year. Nebius currently trades at around 15 times expected sales for this year, down from about 24 times during its peak in June. With over $37 billion in remaining performance obligations and large contracts with clients like Microsoft and Meta Platforms, the company has a strong revenue pipeline if it can scale up operations effectively.
Topics: AI cloud computing Nebius Group revenue growth stock performance