--- title: "Nebius Group Pulls Back 9% After a Downgrade Despite Strong Earnings" type: "News" locale: "en" url: "https://longbridge.com/en/news/286931739.md" description: "Nebius Group's stock fell nearly 9% following a downgrade from DA Davidson, despite reporting a remarkable 684% revenue growth to $399 million and reaffirming its 2026 revenue guidance of $3B to $3.4B. The downgrade was attributed to valuation concerns rather than business deterioration. Analysts remain optimistic, with price targets raised significantly, indicating potential for future growth despite the recent pullback." datetime: "2026-05-19T14:35:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286931739.md) - [en](https://longbridge.com/en/news/286931739.md) - [zh-HK](https://longbridge.com/zh-HK/news/286931739.md) --- # Nebius Group Pulls Back 9% After a Downgrade Despite Strong Earnings Nebius Group NASDAQ: NBIS delivered an impressive earnings report on May 14, reporting revenue of $399 million, up 684% year over year. The company also reiterated its 2026 revenue guidance of $3 billion to $3.4 billion and raised its contracted power guidance to over 4 gigawatts by year-end. It broke ground on its first U.S. gigawatt-scale AI factory. And a wave of analyst price target increases followed, with Citigroup raising its target from $169 to $287 and Citizens Jmp raising its target to $270. And yet, on Monday, the stock fell almost 9%. For investors who have followed the Nebius story, the question is a natural one: Is this something to worry about, or is it simply the price of admission on one of the market's most high-velocity growth stocks? ## What Triggered the Move The primary catalyst for Monday's selloff was a downgrade from DA Davidson, which moved the stock from Buy to Neutral. The timing is notable. DA Davidson had raised its price target from $200 to $250 following the earnings report last week, reflecting genuine conviction in the fundamental story. A deterioration in the business did not drive the downgrade to Neutral just days later; instead, valuation did. After a surge of close to 30% in the days following earnings, the stock ran well ahead of even the most recently raised price targets. DA Davidson's move was a signal that, at current prices, the risk-reward had become more balanced, not that the thesis had changed. Broader sector weakness among AI and neocloud names added to the pressure on Monday. CoreWeave NASDAQ: CRWV, which DA Davidson also moved to Neutral at the same time, saw a similar market reaction. ## The Earnings Themselves Were Exceptional It is worth separating the stock's short-term price action from the underlying business momentum, because the Q1 2026 results were genuinely impressive. Revenue of $399 million grew 684% year over year from $50.9 million in Q1 2025. Adjusted EPS of negative 23 cents crushed the negative 77-cent consensus estimate by 54 cents. The company confirmed it remains on track to achieve its 2026 revenue target of $3 billion to $3.4 billion and raised its contracted power guidance to over 4 gigawatts by year-end. Breaking ground on its first U.S. gigawatt-scale AI factory underscores the pace of physical infrastructure buildout happening behind the numbers. The backlog and contracted revenue picture remains extraordinary. The relationships with Meta NASDAQ: META, Microsoft NASDAQ: MSFT, and NVIDIA NASDAQ: NVDA are intact and expanding. And with Q1 representing the first quarter where the scale of the $46 billion in committed contracts is beginning to flow through the income statement in a meaningful way, the trajectory is clear. ## The Pullback in Context The stock was down almost 9% on Monday, pulling back 15% from its recent 52-week and all-time high. That sounds significant, and in absolute terms it is. But it needs to be placed in context. NBIS is still up almost 140% year to date, and the broader uptrend that has defined the stock since late 2024 remains firmly intact. ### Nebius Group N.V. (NBIS) Price Chart for Tuesday, May, 19, 2026 It is also worth noting that the consensus price target across 15 analysts now sits at $182.75, technically implying modest downside from current levels. But that consensus figure reflects a mix of recently raised targets and a few more cautious outlooks, and individual targets from Citi at $287 and Citizens at $270 tell a different story about where the most bullish analysts see the stock heading. ## Pullback or Problem? Monday's move looks far more like a natural digestion of a parabolic post-earnings surge than a signal that something has gone wrong. DA Davidson's valuation concern is legitimate following a near-30% short-term run, but the underlying business is delivering exactly what the bull case has always called for. Revenue growing 684% year over year, contracted power raised to over 4 gigawatts, a U.S. gigawatt-scale AI factory now under construction, and full-year guidance firmly reiterated. For long-term investors already in the stock, the pullback might not change the thesis. For those waiting on the sidelines, a close to 15% discount from the recent high, in a stock still up almost 140% on the year, may represent exactly the kind of entry point that rarely presents itself cleanly. The broader AI trade has run hard in recent days, and a period of consolidation and digestion could set up the next round of attractive entry points across the sector. ## Should You Invest $1,000 in Nebius Group Right Now? Before you consider Nebius Group, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Nebius Group wasn't on the list. While Nebius Group currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here ### Related Stocks - [NBIS.US](https://longbridge.com/en/quote/NBIS.US.md) - [NBIG.US](https://longbridge.com/en/quote/NBIG.US.md) - [NEBX.US](https://longbridge.com/en/quote/NEBX.US.md) - [NBIL.US](https://longbridge.com/en/quote/NBIL.US.md) - [CRWV.US](https://longbridge.com/en/quote/CRWV.US.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Nebius Just Soared to a New 52-Week High. 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