Benzinga Pro data showed Nebius Group shares trading at $151.44 on Friday, down 11.95% at publication. The decline followed disappointing earnings from Amazon and a weaker-than-expected revenue outlook from Intel. The results heightened concerns about spending on artificial intelligence infrastructure. Nebius operates as a neocloud, building and renting AI computing capacity, and depends on large technology companies spending money.
The Nasdaq fell 2.98% on the day. The S&P 500 declined 1.46%. Technology performed worst among sectors, falling 4.56%.
Amazon generated $201.94 billion in third-quarter revenue, missing the consensus forecast of $202.31 billion. Amazon earned $1.89 per share, compared with expectations of $1.97. Amazon recorded a free cash flow outflow of $42.4 billion over the trailing 12 months. Intel projected fourth-quarter revenue between $15 billion and $16 billion, short of Wall Street's estimate of roughly $17.1 billion.
CNBC cited StreetAccount figures showing Microsoft reported $45.2 billion in capital expenditures and finance leases earlier in the week, below the $50.7 billion average analyst forecast. Microsoft CFO Amy Hood said during the earnings call that some third-party capacity expected in the first quarter had been delayed.
Nebius is due to announce earnings on November 12. Analysts forecast a loss of 69 cents per share, compared with a loss of 40 cents in the same quarter last year. Revenue is expected to reach $906.01 million, compared with $146.10 million a year earlier.
Nebius traded 16.8% below the 20-day simple moving average. Nebius stood 25% below the 50-day simple moving average. Nebius traded 27.3% below the 100-day simple moving average, leaving the intermediate trend downward. The 50-day simple moving average remained above the 200-day simple moving average, a bullish longer-term configuration. However, Nebius traded 11.4% below the 200-day simple moving average, indicating pressure on the longer-term uptrend.
The recent decline took Nebius from the August swing high toward the October swing low area. Earlier turning points suggest traders are watching for stabilization or a further decline. Technical resistance stands at $168.50, a nearby rebound level that could limit gains after the sell-off. Technical support stands at $146, an area where buyers previously entered.
Nebius Stock Falls 11.95% Amid Weak Earnings from Amazon and Intel
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Summary
Nebius Group (NASDAQ:NBIS) shares dropped 11.95% to $151.44 on Friday, as weak earnings from Amazon and Intel weighed on market sentiment. On-chain data shows investor confidence waning, with the fear and greed index dipping into fear territory. Amazon’s Q3 revenue of $201.94 billion missed forecasts, while Intel’s Q4 outlook fell short of expectations. Analysts expect Nebius to report a 69-cent loss per share when it releases earnings on November 12.
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