Nebius Stock Falls After Key Gartner Warning as Short Interest Nears 20%
Key takeaways
- Nebius faces mounting short interest, higher borrowing costs, and a sharp depreciation hit, all of which could drive the stock further lower in the near term.
- Short interest approaching 20%
- Depreciation 245% jump to $259 million
- Revenue $582 million
What happened
Nebius Group (NASDAQ: NBIS) slid sharply as investors dumped neocloud shares amid AI‑industry jitters. Short interest climbed toward the 20% threshold after Gartner warned of large impairments by 2030. The company’s earnings showed a 245% jump in depreciation to $259 million on $582 million revenue, and bond yields rose to 5.3% for the 10‑year Treasury, pushing up debt costs.
Why it matters
The near‑term risk for NBIS is high: a 20% short interest signals growing cautious sentiment, and rising borrowing costs could squeeze margins. The 245% depreciation spike indicates heavier capital spending, while the 5.3% Treasury yield means future debt will be more expensive. These factors combine to pressure the…
Short-term and longer-term
Short-term. Over the next few days, NBIS could see sharper declines if the stock breaks below $194, as short sellers look to lock in gains.
Longer-term. For investors, the key concern is whether NBIS can sustain its growth trajectory amid rising depreciation and higher financing costs.