Nebius Group N.V. ( NBIS ) shares fell over Thursday, hitting a low of $38.50 before rebounding past $48. Here’s what you need to know.

What To Know: The decline potentially follows the company's release of its fourth-quarter and full-year 2024 financial results, which, despite strong revenue growth, showed deep losses that appear to have shaken investor confidence.

In the fourth quarter of 2024, Nebius ( NBIS ) reported revenue of $37.9 million, a 466% increase year-over-year, largely driven by a 602% surge in its core AI infrastructure business. However, the company posted an adjusted EBITDA loss of $75.5 million and a net loss from continuing operations of $136.6 million.

For the full year, revenue reached $117.5 million, up 462% from 2023. Despite this, Nebius ( NBIS ) reported an adjusted EBITDA loss of $266.4 million and a net loss from continuing operations of $396.9 million. The company ended the year with $2.45 billion in cash and cash equivalents, aided by a $700 million equity raise in Q4 to support its AI expansion.

Nebius ( NBIS ) also fell short of its projected annual recurring revenue (ARR) for fourth quarter 2024, further dampening optimism. The company’s heavy capital spending — $417.6 million and $808.1 million for the year — only deepened concerns about its financial stability.

While Nebius ( NBIS ) is optimistic about long-term growth, including a projected ARR of $750 million to $1 billion by December 2025, its financial challenges and unfulfilled projections led to the stock's decline.

Price Action: Nebius ( NBIS ) shares were down 3.17% at $46.25 at the time of writing, according to Benzinga Pro.

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