Nebius Group Shares Plunge 50% Ahead of Q3 Earnings

Nebius Group N.V. will report its third-quarter financial results on Thursday, November 12, before the market opens. The company's stock has declined by more than 50% since October, a drop analysts attribute to a broader selloff in AI and semiconductor stocks alongside specific funding constraints.

Despite the share price collapse, the company reported 454% year-over-year revenue growth to $582 million and secured $40 billion in customer commitments. Reports indicate that GPU pricing power and customer advances remain robust, though the company faces rising financing costs, high capital intensity, and potential shareholder dilution from ongoing share issuance.

Operational challenges have also emerged, including execution delays regarding a 140MW data center project in New Jersey. Investors are now focusing on whether EBITDA growth can translate into sustainable free cash flow. Key metrics for the upcoming report include the Annual Recurring Revenue trajectory, the extent to which customer prepayments cover capital expenditures, and updates on funding plans or 2027 guidance.