Nebius shares fall as Big Tech earnings fuel AI spending concerns

Shares of Nebius Group NV dropped 9.1% in morning trading Friday to $156.41 as investors reacted to a series of weak earnings reports from major technology companies that raised questions about the pace of AI infrastructure spending.

The decline followed disappointing results from Amazon and Intel, which added to concerns triggered earlier in the week by Microsoft's capital expenditure figures. Amazon posted negative free cash flow for the second straight quarter and missed both revenue and earnings estimates. Intel's fourth-quarter revenue forecast fell short of investor expectations.

Nebius operates as a neocloud company, building and leasing AI computing infrastructure, which makes it particularly vulnerable to any indication that large technology firms are reducing their infrastructure investments.

Microsoft reported quarterly capital expenditures of $45.2 billion, below the $50.7 billion analyst consensus. The company attributed the shortfall to timing differences in third-party capacity delivery.

A Form 144 filing and insider selling activity earlier in October added to investor caution surrounding the stock.

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