Nebius Slips Below $100 as Tariff Jitters Hit Tech Stocks
Analysts expect deep negative cash flow during the company’s multi‑gigawatt AI infrastructure buildout.
Overview
- Shares of Nebius Group fell 8.68% to $99.29, tracking a broader tech selloff tied to renewed tariff tensions between the United States and the European Union.
- Morgan Stanley initiated coverage on January 15 with an Equalweight rating and a $126 price target, citing long‑term AI infrastructure scale‑up potential.
- The company reports roughly $584.4 million in annualized recurring revenue and guides to about $6–$9 billion by late 2026, a target some analysts describe as optimistic.
- Heavy spending underpins the expansion plan, including a reported ~$5 billion in 2025 CapEx, quarterly cash burn near $120 million, and expectations for negative free cash flow through delivery of roughly 2.5 GW by end‑2026.
- Recent company updates include plans to offer NVIDIA’s Rubin platform in the second half of the year, and coverage has referenced a reported $20+ billion backlog anchored by Meta and Microsoft.