Nebius Group stock price continued its strong rally this month as investors cheered the recent Coreweave earnings. NBIS shares surged to a high of $37.50 on Friday, its highest level since February, and up by 103% from its lowest level this year. So, will the stock rise or fall after its earnings on Tuesday?
Nebius Group will publish its earnings on Tuesday
The artificial intelligence industry has grown substantially in the past few years as most companies boost their sector investments.
There are signs that the industry, especially infrastructure providers, are doing well. A good example of this is CoreWeave, the NVIDIA-backed company that runs giant data centers in the US and Europe.
CoreWeave’s business continued doing well in the first quarter of the year, with its revenue surging by over 400%. The management guidance showed that its revenue would jump to over $5 billion this year
Nebius Group, a company that offers AI infrastructure solutions, will also publish its financial results on Tuesday. Analysts are optimistic that Nebius Group’s revenue will continue surging this year.
The average estimate is that its annual revenue will reach $520 million, a 343% increase from last year. It will then make $961 million in 2026, a 84% surge.
This growth is happening because of the rising demand for data center solutions by companies building AI models.
In addition to Toloka, its data center business, Nebius Group runs other businesses like TripleTen and Avride. TripleTen is an education technology company that offers reskilling and upskilling customers in the tech industry. Avride is a firm building autonomous cars and robots.
One potential approach to boost shareholder value would be to separate the three companies into separate firms.
Read more: CoreWeave stock price analysis: is it the next multibagger company?
NBIS earnings ahead
The next key catalyst for the Nebius stock price will be its quarterly earnings. The most recent numbers showed that its revenue rose by 466% in the fourth quarter to $37.9 million. This growth happened as it increased the number of customers to include the likes of Mistral, Converge Bio, and Simulacra AI.
Nebius Group’s annual revenue jumped by 462% to over $117 million. Like other companies in the industry, Nebius also made a big loss as it continued to invest on data centers. It had a net loss of $136 million in the fourth quarter and $396 million for the full year.
Analysts anticipate that Nebius Group’s revenue will rise to $63.8 million this year, while its earnings per share (EPS) will be a loss of 45 cents.
Nebius Group stock price analysis
The daily chart shows that the NBIS stock price has jumped in the past few weeks. It has moved above the ascending trendline that connects the lowest swing in October 2024.
The stock has moved above the 23.6% Fibonacci Retracement level at $30.93. It has jumped above the 50-day Exponential Moving Average (EMA).
The Relative Strength Index has moved above the overbought level at 75, while the Average Directional Index (ADX) has risen to 28. Therefore, the Nebius Group stock price will likely continue rising as bulls target the resistance point at $50, the 50% Fibonacci Retracement level. This price is about 45% above the current level.
Read more: Nebius stock slowly forms a double bottom: will it surge soon?
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