Seeking Alpha downgraded Nebius Group to "Hold." The firm stated the stock's recent momentum-driven buying appears "well overextended." The downgrade follows a significant rally in the stock. Nebius previously reported exceptional quarterly growth. This included a 454% year-over-year revenue increase on August 12.
The analysis acknowledges Nebius's strong AI-driven demand, an expanding customer base, and an impressive growth outlook. However, the analysis highlights persistent negative free cash flow. It also cites high valuation multiples as significant risks, advising caution.
Separately on the same day, Wall Street Zen upgraded the stock. The upgrade moved its rating from "strong sell" to "sell."