Nebius Group Shares Drop 40% Amid Aggressive Revenue Targets

Nebius Group shares have fallen approximately 40% from a June 18 record high of $286.69, currently trading around $165. The decline accelerated in October, mirroring a broader investor trend affecting other AI cloud providers such as CoreWeave.

Despite the stock volatility, the company reported significant growth in the second quarter, with revenue reaching $582 million, a 454% increase year-over-year. However, the company faces a steep challenge to reach its 2026 revenue guidance of $3.0 billion to $3.4 billion. To meet these targets, second-half revenue must more than double the $981 million earned in the first half of the year.

Nebius reports a signed contract backlog of $37.5 billion as of June 30, though earnings remain highly concentrated. Three customers account for 59% of second-quarter revenue, including Microsoft and Meta Platforms, both of which have deals exceeding $10 billion. Chief Financial Officer Dado Alonso Sanchez stated that capacity deployed late in Q2 would begin contributing to revenue in Q3.