DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Nebius shares plunged 10% Thursday after one of the largest publicly traded neocloud companies delivered third quarter revenue above analyst estimates but paired the result with disappointing guidance. The decline marked a sharp reversal from the stock’s 15% gain during the previous session.

Revenue surged 571% in the quarter, according to a company statement. Nebius reported a net loss of $37.5 million, or 13 cents per share, compared with a loss of $119.6 million, or 50 cents per share, one year earlier.

It was not immediately clear whether the company’s loss per share was comparable with the 69 cent loss expected by analysts surveyed by LSEG. That uncertainty accompanied a report whose headline revenue performance was overshadowed by the outlook for future revenue and spending.

In a shareholder letter, CEO Arkady Volozh said Nebius expects fiscal year 2026 revenue to land at the low end of its previously stated range of $3 billion to $3.4 billion. FactSet had expected full year revenue of $3.35 billion.

Nebius also provided an initial outlook for 2027, forecasting revenue between $12 billion and $13 billion. The company said that projection was “reflecting a conservative approach to the pace of our build-out.”

The 2027 revenue range was broadly aligned with the $12.09 billion expected by FactSet. Yet the company’s capital expenditure projections came in substantially above both its previous guidance and analyst expectations.

Nebius now expects fiscal year 2026 capital expenditures of $27 billion. That exceeds its earlier guidance range of $20 billion to $25 billion, as well as the FactSet expectation of $23.85 billion.

The gap grows larger in the following year. Nebius expects fiscal year 2027 capital expenditures between $40 billion and $45 billion, far above the $28.77 billion anticipated by FactSet.

During the quarter, Nebius said it raised $5.75 billion through debt financing. The disclosure arrived as investors continued assessing the enormous financing requirements associated with the artificial intelligence infrastructure expansion.

The Nebius report followed earnings announcements from fellow neocloud companies CoreWeave and IREN, which both posted financial results above expectations during the prior week. Those reports had helped lift stocks that suffered steep selloffs amid concerns about the sustainability of the artificial intelligence buildout.

Neocloud shares staged a robust rally Wednesday. CoreWeave surged nearly 25%, Nebius climbed 15%, Applied Digital advanced more than 7%, and IREN added nearly 6%.

That momentum broke after Nebius released its third quarter results. Each of those stocks fell in Thursday trading before the market opened, while Nebius shares ultimately sank 10%.

Financing concerns have also remained visible across the sector. CoreWeave bond yields climbed past 16% last week, and the company told analysts Tuesday that it expects to keep debt financing at the parent company below $5 billion through 2027.

The political backdrop has added further volatility as Nebius and its rivals race to open new data centers. Last week, United States voters backed dozens of ballot initiatives restricting the development of such facilities, while Democrats won sweeping victories in both houses of Congress.

Nvidia has created another source of turbulence for the neocloud market. Following revelations concerning CEO Jensen Huang’s affairs, including one involving an alleged Chinese spy, The Wall Street Journal reported late Wednesday that Nvidia’s board planned to remove the company cofounder.

Nvidia has invested in neocloud companies and supported some of their projects. According to a filing, Nvidia held approximately $329 million in Nebius shares at the end of June.

Nebius executives were scheduled to discuss the quarter’s results with analysts and provide guidance during a conference call beginning at 8 a.m. ET. The discussion followed a report that combined extraordinary revenue growth with weaker guidance and sharply elevated capital spending plans.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.