Nebius Group N.V. (NBIS) shares dropped after Q3 2025 results, with widening losses and a lower revenue outlook. Stock down 20.4% since earnings. Shares plunged 30% in the past month, underperforming the industry. Sector and S&P 500 up 0.2% and 3%.

Q3 adjusted net loss widened to $100.4 million, revenues rose 355% to $146.1 million, EBITDA loss narrowed to $5.2 million. Operating costs increased 145%, net loss from operations at $119.6 million. NBIS facing macroeconomic uncertainties, rising expenses, and high capital spending.

NBIS tightened full-year revenue outlook to $500-550 million, adjusted EBITDA to turn slightly positive by year-end. Challenges include operational issues, competition, and execution risks. Competitors like Microsoft, Amazon, and CoreWeave scaling rapidly in AI infrastructure sector.

Valuation concerns with NBIS trading at 5.53X Price/Book. Despite headwinds, company focusing on long-term growth with new data centers and enterprise offerings. Recent multi-billion-dollar deals with major tech players expected to drive revenue growth in 2026.

Investors advised to consider offloading NBIS due to high valuation, execution challenges, and competition. Strong long-term tailwinds but near-term risks significant. Zacks Rank #4 (Sell). Company targeting substantial growth in 2026 and beyond, but caution advised.

Read more at Nasdaq: Nebius Shares Fall Post Q3 Earnings: Should Investors Hold or Sell?