Nebius shares fall as data center delays push revenue into next year
Nebius reported quarterly revenue of nearly $1 billion, up sevenfold year-over-year, but its stock dropped 15% due to power and server shortages. The company expects to land at the lower end of its current year forecast of approximately $3 billion.
Nebius, a neocloud provider, disclosed quarterly revenue of nearly $1 billion, a sevenfold increase year-over-year that exceeded expectations. Despite the strong top-line growth, the company’s shares fell 15% following the report. The decline was driven by a mismatch between demand and supply; Nebius has more customers than available power and servers. Partner data centers are delayed, pushing revenue originally expected in December into the following year. Consequently, Nebius projects it will land at the lower end of its current year forecast of approximately $3 billion. For the next fiscal year, the company forecasts revenue of up to $13 billion, a figure that exceeds market expectations. To achieve this growth, Nebius plans to invest up to $45 billion, an amount that exceeds its current market capitalization of $34 billion. This gap necessitates additional debt financing. The stock’s decline was compounded by broader sentiment in Nvidia-backed equities, with CoreWeave falling nearly 10% and Intel dropping 3% in the same session.