NBIS Stock Gains Premarket: Neocloud Operator Raises $5.8B in Debt, Beating Initial Target; Investors Await IREN Report

• Nebius said Monday that its offering concluded, and the company raised more than the $4.5 billion it initially planned.
• After Nebius and CoreWeave, IREN Ltd will report its quarterly results this Thursday.
• Retail sentiment for NBIS dipped over the past week and was ‘bearish’ on Tuesday.

Nebius Group N.V.’s shares rose 3% in early premarket trading Tuesday, rebounding from a sharp selloff in recent days triggered by a major debt raise.

The company said on Monday that it concluded the debt issue and raised a total of $5.75 billion by issuing convertible senior notes in two series: 0.50% convertible notes due 2030 and 4.50% convertible notes due 2034.

The raise exceeded the company’s initial target of $4.5 billion, which it raised to $5 billion last week. The proceeds will be used to expand data center capacity, ​invest in the company's full-stack AI cloud ​platform, and acquire GPUs and other key components needed ‌to ⁠support growth, Nebius had said.

Concerns over Nebius’ increasing debt load have pressured NBIS stock. Shares have declined for six straight sessions, cumulatively losing 24% over the period.

With Nebius and CoreWeave already reporting strong quarterly results, investors will likely look to IREN Ltd’s report on Thursday for further cues on trading in the neocloud space.

Nebius’ Growth March 

Nebius is a relatively new neocloud player that recently pivoted toward cloud computing and is now building capacity to fulfill its first set of major orders. 

The Amsterdam, Netherlands-based company signed a five-year, $12 billion AI infrastructure deal with Meta Platforms and is targeting 800 MW to 1 GW of connected power by the end of 2026, with data center campuses across Missouri, Pennsylvania, Finland and the UK.

Amid massive demand for AI cloud capacity, neocloud stocks have surged. Nebius is up a staggering 152% year to date, while CoreWeave and IREN have gained 20% and 5.4%, respectively. Stocktwits recently published an explainer comparing the three neocloud stocks from an investment perspective.

Retail View On NBIS 

On Stocktwits, the retail sentiment for NBIS dipped over the past week and was ‘bearish’ on Tuesday, although traders appeared optimistic about the long term prospects of the company.

“Conversion price is 45% higher than today. The company wants to convert these bonds to shares so they can stop paying interest on them as fast as possible,” a trader said. “Now I'm not saying next week, but I'm an investor not a trader, and I will be adding on any weakness like we are seeing.”

“$NBIS The biggest risks to being long here are the invention of chips better than NVDA's and oversupply of compute, and neither of those look remotely close to happening,” a trader said.

Investors Turn To IREN’s Earnings Report

IREN is the third of the neocloud trio, and the one yet to report. Analysts expect its fourth quarter revenue to decline 26% to $140.7 million and the company to post an adjusted loss of $0.46 per share.  

CoreWeave’s revenue increased 160% to $3.54 billion last quarter, while Nebius’ sales increased 454% to $582.3 billion.

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