Nebius Announces Meta AI Deal Amid Larger Q3 Net Income Loss
Nebius, a cloud computing services provider based in the Netherlands, has announced a significant partnership with Meta Platforms. This agreement involves the provision of artificial intelligence compute infrastructure. Valued at approximately $3 billion, the deal extends over five years.
Nebius Financial Performance in Q3
In its third quarter earnings report, Nebius revealed a net income loss of nearly $120 million. This represents an increase from the $43.6 million loss recorded during the same period last year. Revenue enjoyed a remarkable rise of 355%, reaching $146.1 million. This figure excludes the discontinued operations of AI data firm Toloka.
Market Expectations and Reactions
Wall Street analysts had expected Nebius to post a net income loss of $97 million, with projected revenue of $155 million. Following the earnings release, Nebius stock initially fluctuated but ultimately rose by 6.2%, trading at $116.75. Additionally, shares have surged by an impressive 264% in 2025, despite a recent consolidation phase after peaking at $141.10 on October 10.
Capital Initiatives and Equity Offering
To support its future developments, Nebius announced an equity offering of 25 million Class A shares. The capital raised will be directed toward building out data centers, which are specifically designed for processing AI workloads.
Competitive Landscape
Nebius faces competition from other cloud infrastructure startups, including CoreWeave. CoreWeave recently released its earnings, surpassing third-quarter expectations but lowering its full-year revenue forecast. This was due to delays in capacity from a third-party vendor.
Industry Insights
- Nebius specializes in renting servers powered by Nvidia artificial intelligence accelerators.
- Competition is strong among companies providing AI and cloud computing solutions.
- Some analysts have expressed concerns regarding customer concentration and high debt levels at Nebius.
Ratings and Investor Considerations
Nebius holds a Composite Rating of 56 out of a possible 99, according to IBD Stock Checkup. This rating combines key metrics to help investors evaluate a company’s performance. Nevertheless, the stock has an Accumulation/Distribution Rating of E, indicating a trend of heavy selling in recent weeks. Investors continue to monitor Nebius as a potential leader in the AI market.
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