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Nebius Faces a Key Earnings Test After Microsoft Scrutiny

Thursday’s report could show whether Microsoft’s review of the Vineland project threatens Nebius’s ability to fund its planned buildout.

Overview

  • Nebius will report third-quarter results before the market opens on Thursday and analysts expect about $907 million in revenue and a $0.61 per-share loss.
  • The stock trades near $141, about 54% below its peak near $300, as investors price in downside risk from options, technicals and roughly 20% short interest.
  • Reporting has said Microsoft is rethinking some neocloud partnerships and has focused scrutiny on Nebius’s Vineland, which Seeking Alpha estimated as tied to roughly $17.4 billion in capacity commitments.
  • Nebius has raised large amounts of capital to fund an aggressive expansion, raising over $2 billion in Q2 and increasing share count to about 238 million, raising concerns about dilution and refinancing if revenue timing slips.
  • Analysts warn the wider neocloud sector faces higher hardware costs, permitting delays and potential impairments, which could push Nebius’s capacity ramps later and strain its financing and customers' delivery schedules.