Why NBIS Rebounded Today After Last Week’s Sharp Sell‑Off
Nebius Group (NASDAQ: NBIS) staged a notable rebound today, reversing part of last week’s steep decline that followed mixed third‑quarter results and heightened dilution concerns. The bounce reflects investors reassessing the near‑term risks and refocusing on the company’s long‑term positioning in the rapidly expanding AI infrastructure market.
What Triggered Last Week’s Sell-Off
NBIS fell sharply after reporting Q3 revenue of $146.1 million, missing Wall Street expectations near $153.7 million, according to reporting from Benzinga. The company also issued a full‑year revenue outlook of $500–$550 million, well below analyst estimates around $578 million.
Additional pressure came from the announcement of an equity distribution agreement enabling the sale of up to 25 million Class A shares, which intensified fears of near‑term dilution and margin compression.
Why Shares Rebounded Today
Investors Are Reassessing the Earnings Miss
While the Q3 revenue shortfall triggered a knee‑jerk reaction, today’s rebound suggests sentiment is stabilizing as the market digests the numbers in context. Despite the miss, Nebius still posted triple‑digit year‑over‑year growth in its AI‑focused infrastructure business, signaling that underlying demand remains strong.
Dilution Concerns Have Cooled
The renewed selloff last week stemmed largely from fears that Nebius would rapidly issue the full 25 million new shares. But with no indication of immediate issuance pressure, and volumes showing no sign of major block placements, investors appear more comfortable that dilution may be gradual rather than abrupt.
Benzinga noted this shift directly in its coverage of today’s move, highlighting that shares are recovering as dilution worries “ease” and investors “reassess the long‑term growth story” (source).
Renewed Focus on Long-Term AI Infrastructure Demand
Nebius operates in one of the fastest‑growing segments of the tech market: full‑stack AI infrastructure, including large‑scale GPU clusters and cloud services for enterprise AI builders. Recent multi‑year agreements with major technology companies—including Meta and Microsoft, as reported by —have reinforced confidence that NBIS has durable demand drivers that extend well beyond short‑term earnings volatility.