Nebius stock price continued its strong uptrend this week, reaching an all-time high after a series of positive news releases. NBIS jumped to $282 today, June 17, up by 287% from its lowest point this year. Its valuation has soared to $67 billion.
Nebius Stock Has Surged After Some Major News
NBIS, a top player in the neocloud industry, has soared this month as investors reacted to some notable news. The company closed its acquisition of Eigen AI, which was announced on May 1. It spent $643 million on this buyout as it seeks to capitalize on the growing demand for inference optimization, model quantization, and GPU efficiency improvements.
In other news, the company was unveiled as the next entrant to the exclusive Nasdaq 100 Index. Other companies in the list are CoreWeave, its competitor, Rocket Lab, Astera Labs, and Teradyne. This is a major milestone, as all ETFs tracking the index will have to buy the shares.
Nebius has also made some more major news lately. For example, it entered into a $27 billion deal with Meta Platforms and received a $2 billion investment from NVIDIA.
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Also, the company announced strong financial results, showing that its business was firing on all cylinders, with revenue soaring 684% to $399 million. Data crunched by Yahoo Finance predicts that its revenue will jump 550% this year to $3.4 billion. It will then jump by 225% to $11.2 billion.
NBIS Stock Short Interest Jumps
Still, despite this positive news, investors continue to short the stock, with short interest having jumped to 20%. There are a few reasons for this. First, there are signs that insiders are selling the shares. Its CEO has sold shares worth nearly $4 million over the last two months. In most cases, insider sales are usually risky for stocks since they have privileged information.
The other risk is that the company’s depreciation has continued to rise over the past few months. In its recent earnings report, the firm said that its depreciation and amortization jumped by 332% to over $212 million. This is notable as this amount represented 53% of its total revenue.
Additionally, there are signs of growing competition in the industry. In addition to CoreWeave, companies like SpaceX, IREN, Bitfarms, Mara Holdings, and Riot Platforms have entered the industry.
Technicals are also sending a red alert. Nebius stock has formed a double-top pattern at $278, its highest point on June 2nd and 17th. It has a neckline of $200, its lowest level this month.
The stock is also well above the 50- and 100-day moving averages. The 50-day EMA is at $200, while the 100-day EMA is at $165. As such, there is a risk that it will undergo mean reversion, in which an asset retreats toward its historical average.
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