Shares of Nebius Group N.V. experienced a significant pre-holiday rally, closing Friday's session at $98.01, a gain of 9.23%. The stock traded within a range of $88.86 to $100.32 throughout the day. With U.S. financial markets closed on Monday in observance of Presidents Day, investors and traders must wait until Tuesday for the next opportunity to react to the company's latest financial disclosures and strategic announcements.
Fourth-Quarter Financial Results and Strategic Investments
The company reported fourth-quarter revenue of $227.7 million, a figure that fell short of analyst forecasts compiled by LSEG. Concurrently, Nebius posted a net loss of $249.6 million for the period. Despite the bottom-line loss, a key operational metric turned positive, with the company achieving an adjusted EBITDA of $15.0 million. Operating cash flow was reported as a robust $834.3 million.
The focal point for analysts is the company's substantial capital investment. Nebius disclosed that capital expenditures soared to approximately $2.1 billion during the December quarter. This massive outlay, with property and equipment purchases alone reaching $2.056 billion, is directed toward securing advanced AI chips and significantly expanding its global data-center footprint. The company is a key provider of Nvidia-based AI cloud services to major technology firms, including Microsoft and Meta, positioning itself in the competitive "neocloud" sector alongside rivals like CoreWeave.
Aggressive Growth Targets and Infrastructure Expansion
Founder and CEO Arkady Volozh outlined ambitious financial targets to shareholders. The company is projecting an annualized run-rate revenue between $7 billion and $9 billion by the end of 2026. This represents a dramatic increase from the $1.25 billion projected for the close of 2025, based on the company's methodology of annualizing its most recent monthly revenue.
On the physical infrastructure front, Nebius has already secured contractual commitments for over 2 gigawatts of data center power. The company expects this figure to exceed 3 gigawatts by the end of 2026, with between 800 megawatts and 1 gigawatt of capacity currently operational and connected. "Demand from enterprises and AI-native customers continues to outpace supply," Volozh stated in communications. He also noted the company retains an unused at-the-market share offering program as a potential financing tool.
European Expansion and Strategic Acquisition
Nebius is advancing its European presence with a planned 240-megawatt data center in Béthune, France, near Lille. The facility will be constructed on the site of a former Bridgestone tire factory. The initial phase is scheduled for completion by late summer 2026, with roughly half of the capacity expected to be operational by year-end. Construction costs for the project are estimated by CBRE to be between $2.4 billion and $3.6 billion. According to company details, French construction firm Azur will manage the build costs, while Nebius will procure the necessary Nvidia chips immediately prior to deployment.
In a separate strategic move, Nebius announced the acquisition of Tavily, a company specializing in live search infrastructure for AI agents. These tools enable software to navigate and interact dynamically with the web. The financial terms of the deal were not disclosed, but closing is anticipated within the coming weeks. Tavily's founder and CEO, Rotem Weiss, commented that the partnership would "accelerate our ability to scale globally."
Risks and Market Catalysts Ahead
The very spending driving Nebius's growth narrative also introduces substantial execution risk. Potential delays in data center construction, setbacks in power hookups, or a tapering of customer demand could strain future funding options and impact the stock's valuation. The company also recently disclosed in an SEC filing that it will replace Reanda with Deloitte as its auditor for 2026. Reanda had previously issued an adverse opinion regarding the effectiveness of Nebius's internal controls over financial reporting for the 2024 period.
The immediate catalyst for the stock is clear. U.S. equity markets reopen on Tuesday, February 17, providing the first test of whether Friday's earnings-driven momentum can be sustained. The extended break allows market participants to fully digest the company's aggressive investment strategy against the backdrop of its current financial losses. Traders will be watching closely to see if the focus remains on long-term growth potential or shifts toward the near-term risks and costs of this capital-intensive buildout.
