Nebius Group N.V. (NASDAQ:NBIS) stock rose more than 1% in Thursday’s premarket session after plunging 17.01% in the previous trading day.
The weakness followed reports that Meta Platforms Inc. (NASDAQ:META) is exploring an expansion into AI computing services, raising concerns that the tech giant could become a new competitor in the fast-growing neocloud market.
For Nebius, the development carries added significance because the company has a multi-year capacity agreement with Meta valued at up to $27 billion. Investors worry that Meta’s expansion into commercial cloud services could eventually put it in competition with one of its largest customers.
The report also revived concerns about the long-term competitive moat of independent GPU cloud providers. If cash-rich hyperscalers expand into specialized AI computing services, they could increase pricing pressure and erode market share for smaller cloud operators.
The competitive concerns extended across the sector. CoreWeave Inc. (NASDAQ:CRWV) stock fell 13.92% in Wednesday’s session as investors reassessed the outlook for neocloud providers.
Technical Analysis
Despite the recent pullback, Nebius remains in a strong long-term uptrend. The stock has gained 358.64% over the past 12 months.
The shares trade 5.9% below their 20-day simple moving average of $250.91, but remain 10.3% above the 50-day SMA of $213.91. That setup suggests the stock is consolidating after a strong rally rather than reversing its broader trend.
The relative strength index stands at 46.36, placing the stock in neutral territory. The reading suggests neither buyers nor sellers have a clear short-term advantage.
The longer-term trend also remains constructive. The 20-day SMA sits above the 50-day SMA, while the 50-day SMA remains well above the 200-day SMA of $132.31.
Traders are watching $279 as the next resistance level. Support is near $200.50, close to the 50-day moving average.
Earnings And Analyst Outlook
Nebius is expected to report earnings on Aug. 6, 2026.
Wall Street expects the company to post a loss of 73 cents per share, compared with a loss of 38 cents a year earlier. Revenue is projected to climb to $578.39 million from $105.1 million.
The stock trades at a forward P/E ratio of 88.5, reflecting its premium valuation.
Analysts maintain an overall Buy consensus with an average price forecast of $213.89. Recent actions include Bank of America Securities raising its price forecast to $280 on June 8, BNP Paribas initiating coverage with a Neutral rating and a $255 price forecast on June 2, and DA Davidson maintaining a Neutral rating with a $250 price forecast on May 18.
Benzinga Edge Rankings
Benzinga Edge assigns Nebius a Momentum Score of 98.79, reflecting its strong relative performance over the past year. Its Value Score of 3.77 indicates the shares remain expensive relative to peers.
The ratings point to strong investor confidence in the company’s growth outlook, but its premium valuation may leave the stock more vulnerable to negative headlines.
Price Action
NBIS Stock Price Activity: Nebius Group shares were up 1.06% at $231.60 during premarket trading on Thursday, according to Benzinga Pro data.
