Nebius slides as AI valuation worries persist

Nebius Group NV fell nearly 5% in morning trading Monday, as concerns about artificial intelligence valuations and data center expansion costs continued to weigh on the stock. The AI cloud infrastructure provider has declined more than 8% over the past five trading sessions.

The stock came under pressure following reports last week that OpenAI's annualized revenue fell short of earlier market expectations, shaking investor confidence across the neocloud sector. Additional concerns stemmed from insider selling activity in early October, when the company's chief operating officer sold a large block of shares and the chief technology officer also reduced his holdings. The transactions were conducted through preset trading plans.

Rosenblatt Securities initiated coverage on the stock Monday with a Buy rating, citing the company's position in the AI training and inference infrastructure market. The positive rating has not reversed the stock's decline.

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