Nebius Shares Slide as AI Cloud Growth Faces Funding Concerns

Nebius Group shares declined on October 13, 2026, as investors assessed the AI cloud provider's expansion plans, valuation, and financing needs after recent analyst coverage. The company competes in the neocloud market by renting accelerator capacity to AI developers.

According to finance.yahoo.com, Nebius stock traded at $214.99 in morning trading, down 3%, extending an 11% weekly decline. CoreWeave shares also fell 1% to $80.91 during the session.

Rosenblatt Securities began coverage of Nebius with a Buy rating, placing the company near the top of the neocloud group alongside CoreWeave, according to finance.yahoo.com. The firm had previously issued its coverage as shares continued moving lower.

According to tikr.com, Rosenblatt set a $304 price target using a ten-year cash flow model with a 12% discount rate and a 12 times terminal free-cash-flow multiple. The firm projected revenue growth of about 98% annually from fiscal 2026 through fiscal 2030.

Nebius has expanded its AI infrastructure footprint while relying on additional funding sources. tikr.com reported that the company completed a $5.75 billion convertible debt deal in August and plans a $4.5 billion convertible notes offering.

The company reported strong operating growth as it builds capacity. According to tikr.com, second-quarter revenue reached $582 million, with Nebius AI accounting for 98% of revenue, while adjusted EBITDA reached $236 million with a 41% margin.

tikr.com also reported that Nebius had 3.5GW of contracted power, with Rosenblatt expecting 75% of that capacity to come online through fully owned sites. Management raised its year-end contracted power target to 5 gigawatts.

Pricing trends have supported the expansion effort, according to tikr.com. A capacity auction cleared 15% above the highest price Nebius had previously charged, while the company planned higher prices for its on-demand GPU services starting in October.

Seeking Alpha reported that Nebius recorded 454% year-over-year revenue growth but remained deeply unprofitable. The analysis highlighted concerns around capital spending, revenue concentration, valuation levels, and continued dependence on financing.

According to Seeking Alpha, Nebius faces questions about whether customer prepayments, cash reserves, and new debt can support its expansion plans. The company is scaling while preparing for significant infrastructure investment requirements.

finance.yahoo.com reported that the broader market backdrop was mixed, with the WisdomTree Cloud Computing Fund rising 0.4% to $43.90 while the Invesco QQQ Trust declined 0.1% to $750.43. CoreWeave had also joined the Nasdaq 100 index.