NEW YORK, July 17, 2026, 07:10 EDT
- Nebius finished at $171.77, falling 13.9%. The stock has dropped 20.6% over five sessions as of Thursday.
- Initial estimates show that planned capital expenditure for 2026 is 1.9 to 2.4 times the cash held at the end of March.
Nebius Group N.V. NASDAQ:NBIS dropped 13.9% on Thursday after unveiling a partner-backed expansion model the day before. Shares finished at $171.77.
The Nasdaq’s main session was yet to begin at the time of reporting. According to Google Finance, Nebius was 1.0% lower at $170.40 in premarket trading. Trading hours are scheduled to start at 09:30 EDT.
If May guidance holds, initial calculations suggest $17.5 billion to $22.5 billion in capital spending for 2026 remains after the first quarter. That represents 1.9 to 2.4 times the $9.3 billion in cash recorded at the end of March.
Cash on its own exaggerates external funding requirements. First-quarter operating cash flow totaled $2.26 billion, boosted by a $3.20 billion increase in deferred revenue. In May, management reported plans for mid-single-digit billions in debt and continued to evaluate its at-the-market stock program.
According to the model outlined on Wednesday, partners provide funding and hold ownership of the facilities and hardware, while Nebius delivers the architecture, software, sales, and ongoing maintenance. Although initial agreements are in place, the announcement did not disclose specific partners or capacities. Details on fees or projected cash savings for 2026 were also not provided.
Chief Executive Arkady Volozh said, “Our asset-light approach offers infrastructure partners a flexible means to tap into the rapid expansion of AI.” Terms may involve revenue sharing, licensing, commissions, or dedicated capacity. Nebius
Demand remains strong. Reflection announced on Tuesday it entered a compute agreement with Nebius worth over $1 billion, which includes access to Nvidia Corp. NASDAQ:NVDA chips.
Based on 253.9 million shares outstanding as of March 31, Thursday’s $27.74 decline wiped out an estimated $7.0 billion in equity value. This figure is preliminary, as the number of shares may have changed.
The loss was roughly seven times greater than the $1 billion minimum stated in Reflection’s contract. While these numbers are not directly comparable from an economic standpoint, the difference indicates financing may now be the more significant variable.
Thursday ended with declines that extended past the wider selloff in technology stocks.
| Security | Thursday close | Thursday move |
|---|---|---|
| Nebius Group NASDAQ:NBIS | $171.77 | -13.90% |
| CoreWeave Inc. NASDAQ:CRWV | $72.91 | -5.46% |
| Nasdaq Composite | 25,881.95 | -1.47% |
Nebius trailed CoreWeave by 8.4 percentage points and fell 12.4 points behind the Nasdaq Composite. Barchart data indicated a 20.6% decline over five sessions ending Thursday.
Revenue for the first quarter reached $399 million. The AI cloud division reported an adjusted EBITDA margin of 45%, as defined by the company.
Nebius does not have any investor events scheduled for next week. Upcoming developments may come from partner announcements or financing updates. Investors are expected to focus on funded megawatts, the timing of cash flows, and fee structures.
Risks are still elevated. Partners are required to fund and operate locations according to Nebius standards. There is potential for delays in power, hardware supply, pricing, and funding. Taking on new debt may increase leverage, and equity sales could dilute shareholders.
Friday’s trading will show if the five-day decline has changed expectations. At the moment, capital requirements are having a greater impact on the stock than incoming orders.
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