NEBIUS (NBIS) shares plunged 5.04% during after-hours trading on Wednesday, extending losses from the regular session.
The sharp decline followed BNP Paribas initiating coverage on the AI infrastructure services firm with a Neutral rating and a $255 price target, which sits below the stock's recent trading level. Analysts noted that NEBIUS's year-to-date surge of over 210% has compressed near-term upside potential, with current market pricing implying an overly optimistic scenario.
Sentiment was further weighed down by a broad selloff in the Systems Software sector and prior cautious commentary from other firms like D.A. Davidson. Competitive concerns in the AI infrastructure space also contributed to the negative investor sentiment during the extended trading session.