Nebius Group N.V. shares rose more than 6% in Monday's premarket trading, rebounding after a roughly 25% decline last week. Benzinga Pro data showed Nebius shares up 7.10% at $177.22 in Monday's premarket trading. The recovery followed renewed analyst support and improved sentiment toward technology stocks. Nasdaq futures climbed 1.16%. S&P 500 futures gained 0.45%, providing a favorable backdrop for AI infrastructure stocks. However, Nebius shares remain below several key moving averages, suggesting that selling pressure has yet to subside.
Truist reiterated a Buy rating on Nebius on Sunday with a $355 price forecast. Truist argued that concerns following the failed Firmus initial public offering do not necessarily indicate broader weakness among neocloud providers with substantial contracted backlogs. The outlook counters investor concerns about rising financing costs, debt burdens and the capital-intensive nature of AI infrastructure expansion.
Silvant Capital Management's Michael Sansoterra warned that neocloud companies face technology giants with stronger balance sheets, established customer relationships and extensive infrastructure. Sansoterra said on CNBC Friday that companies such as CoreWeave must compete with hyperscalers that have significant financial and operational advantages. Sansoterra expects the largest cloud providers to capture most of the economic profits from AI spending. However, Sansoterra acknowledged that some neocloud companies could still generate attractive investment returns. Strong AI demand and contracted revenue offer Nebius growth opportunities. However, heavy financing requirements and intensifying competition could pressure Nebius' future profitability.
Nebius remains under short-term pressure despite Monday's rebound. Nebius shares trade 20.6% below the 20-day simple moving average. Nebius shares trade 20.3% below the 50-day simple moving average. However, Nebius shares remain roughly 2% above the 200-day simple moving average, suggesting the longer-term trend has not fully broken down.
The moving average convergence divergence indicator remains below the signal line. The indicator's negative histogram indicates continued bearish momentum. The 20-day simple moving average remains above the 50-day and 200-day averages. However, the stock's decline below the shorter-term averages signals weakening momentum. A sustained recovery could face resistance near $220, where several moving averages converge. Key support stands at $164.50, a level where buyers previously emerged.
Nebius Group Shares Rise 7.1% in Premarket Amid Analyst Buy Rating
BenzingaShare
Summary
Nebius Group (NASDAQ:NBIS) shares climbed 7.1% to $177.22 in premarket trading Monday, rebounding from a 25% weekly drop. Truist maintained a Buy rating with a $355 price target. Silvant Capital’s Michael Sansoterra highlighted risks from hyperscaler competition. The stock remains below key moving averages, with trading volume showing continued selling pressure.
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