Nebius gets hit with a downgrade, and traders flinch

The vibes got a little less euphoric

Nebius Group just did the classic earnings one-two: deliver a jaw-dropping report, then watch the stock take a breather because Wall Street decided to be the fun police. The company said May 14 revenue hit $399 million, up a wild 684% year over year, and it kept 2026 revenue guidance parked at $3 billion to $3.4 billion.

That’s the kind of growth number that makes your spreadsheet sit up straighter. But in a market obsessed with AI infrastructure names, good news alone isn’t enough — you also need the hype meter to stay pinned.

Why the stock slipped anyway

The headline here is the downgrade. DA Davidson cut Nebius to Neutral and slapped a $250 price target on it, which is basically Wall Street saying, “Nice run, but maybe don’t chase the rocket ship while it’s still fueling up.” The market heard that loud and clear, and the shares fell about 9%.

Meanwhile, the earnings report still had plenty to like:

• revenue rocketed to $399 million
• contracted power guidance was raised to more than 4 gigawatts
• management kept its 2026 revenue outlook unchanged at $3 billion to $3.4 billion

The AI buildout story is still the real game

Nebius is still selling the same big narrative: more AI demand, more infrastructure, more power, more money. And in this corner of the market, power isn’t just a utility bill — it’s the new bottleneck.

So even after the pullback, investors are left with the same question: is this a temporary air pocket, or is the stock finally meeting gravity? Big picture: Nebius is still growing like crazy, but when a name gets this hot, even a neutral call can feel like a bucket of cold water.