Nebius Slides 3% Despite Rosenblatt’s New Buy Rating; CoreWeave Slips

Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) stock is at $214.99, down 3% in morning trading, even as a new Buy rating sits on the AI cloud provider. That decline extends a rough stretch, with Nebius stock down 11% over the past week.

Meanwhile, CoreWeave (NASDAQ:CRWV) stock is at $80.91, down 1%, a shallower drop for the larger neocloud rival. Both companies rent accelerator capacity to AI developers by the hour, which ties them together in the neocloud group. CoreWeave stock also joined the NASDAQ 100 index, which gives it a bigger presence in tech benchmarks.

For a wider read, a cloud software basket and the large-cap tech benchmark are moving in opposite directions. The WisdomTree Cloud Computing Fund (NASDAQ:WCLD) is at $43.90, up 0.4%. At the same time, the Invesco QQQ Trust (NASDAQ:QQQ) is at $750.43, down 0.1%.

Rosenblatt Buy Rating Meets a Falling Share Price

Rosenblatt Securities initiated coverage of Nebius with a Buy rating last Friday, ranking Nebius near the top of the neocloud group alongside CoreWeave. Nebius stock has kept falling since that initiation, so the bullish call now sits against a lower share price.

Last week’s pressure traces to a disputed report on OpenAI’s revenue run-rate, which drove a selloff across AI infrastructure and neocloud names (the power, cooling, and networking suppliers behind that expansion are the subject of our free report on seven AI infrastructure stocks that aren’t chipmakers). That report serves as background for the latest decline, and Nebius hasn’t issued a new announcement since then that accounts for the leg lower.

Upfront Capital Separates Nebius From Cloudflare

Nebius buys accelerators and rents access to them by the hour from a European base. Its model commits capital to that capacity well ahead of the revenue it produces, and the backlog shows how far out: remaining performance obligations reached $37.5 billion. Such a backlog gives the company multi-year revenue visibility, though it also locks in the spending required to deliver it.

Recent results show that rental engine scaling, with Q2 2026 revenue of $582.3 million and $574.9 million of it coming from the Nebius AI Cloud segment. Management reaffirmed its FY2026 revenue outlook of $3 billion to $3.4 billion and raised its contracted power guidance to more than 4 gigawatts by year-end.

CoreWeave runs the same rental model at larger scale, and its Q2 2026 capital expenditures of $6.42 billion left free cash flow at negative $5.74 billion. Cloudflare (NYSE:NET) sells an asset-light edge network that needs no comparable expansion.

Looking Ahead: Rebound Case Versus Persistent Selling

Nebius draws support from fresh Street coverage arriving even as its stock trades lower. Nebius stock carries a forward P/E ratio of 46x, and management targets annual recurring revenue of $7 billion to $9 billion with a 40% adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin. Those targets point to a profitability path if the signed capacity is used.

On the bear side, the selling has outlasted the news that started it, and a Buy rating hasn’t slowed it. CoreWeave shows the strain the model can carry even at scale, with a revenue backlog of $104 billion and Q2 2026 adjusted EBITDA of $1.51 billion still coupled with deeply negative free cash flow.

Heavy spending keeps both companies tied to capital markets, a reliance that last week’s AI selloff put in sharper focus. Trading below its 50-day moving average of $224.42, Nebius stock has ground to make up before its chart turns positive, so investors should size their positions with that risk in mind.

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