Cloud computing service provider Nebius reported a quarterly loss exceeding expectations; despite announcing a partnership with Meta, its stock price still plunged over 7%.

On November 11th, Nebius, a cloud computing service provider focused on artificial intelligence (AI) infrastructure, released its third-quarter financial report before the market opened. The report showed that the company's performance failed to meet Wall Street expectations, causing its stock price to come under pressure and drop sharply.

Specifically, Nebius reported a net loss of nearly $120 million in the third quarter ending in September, a significant increase from the $43.6 million loss in the same period last year and higher than analysts' estimate of $97 million.

In terms of revenue, excluding the business of the divested AI data company Toloka, Nebius’ quarterly revenue surged 355% year-over-year to $146.1 million. Despite the rapid growth, this figure still fell short of analysts' expectations of $155 million. The company indicated that the revenue miss was related to an accounting change. After the results were announced, Nebius’ stock price fell more than 7% during the trading day, closing at $102.18.

Along with the earnings release, Nebius also announced a series of major business developments. The company has reached an agreement with Meta to provide AI computing infrastructure valued at approximately $3 billion over the next five years. Notably, it was reported that Nebius has also recently signed a collaboration agreement with Microsoft worth up to $19 billion.

To support business expansion, Nebius also announced plans to issue 25 million Class A common shares in order to raise funds for data center construction.

As a company that rents out Nvidia AI chip servers to AI model builders and application developers, Nebius operates in a fast-growing sector. However, the market is not entirely optimistic about its prospects. Some analysts have pointed out that the company's client concentration and high debt levels are potential risks.

Prior to the financial report release, Nebius’ stock price had already surged 264% in 2025, and the market’s high expectations mean that any performance shortfalls may trigger sharp volatility. Its competitor CoreWeave also recently saw its stock price plummet after lowering its annual revenue guidance, reflecting the intense competition and challenges in the AI infrastructure sector.

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