Nebius Shares Face Investor Skepticism Amid Heavy Spending

Nebius stock falls amid market concerns over heavy capital spending for growth, despite strong revenue. The firm plans to more than double its data centers by 2026.

Investors demonstrated continued caution towards Nebius on Friday, sending the company's shares down by 5.9%. This decline is widely interpreted as part of an ongoing market reassessment following the release of the firm's fourth-quarter and full-year 2025 results on February 12. The central concern revolves around the significant capital required to fund its aggressive expansion strategy.

Financial Results Highlight a Costly Growth Path

The cloud and AI infrastructure provider reported substantial revenue growth for the quarter ending December 31, 2025, with sales reaching $227.7 million. However, this top-line increase was accompanied by considerable net losses. The primary driver of these losses was an exceptionally capital-intensive buildup of capacity.

Capital expenditures during Q4 2025 alone totaled approximately $2.1 billion. These funds were directed toward acquiring GPUs, related hardware, and expanding data center footprints. The critical question facing Nebius is whether it can sustain this rapid investment pace without prolonged pressure on profitability from substantial cash outflows.

Management Commitment to Expansion Remains Firm

Despite the negative market reaction, the company's leadership is steadfast in its ambitious plans. Nebius has outlined specific targets for its annualized revenue run-rate and is significantly increasing power capacity to support future growth.

The company stated it exceeded its 2025 target for active capacity and has raised its forecast for contracted capacity secured through the end of 2026. Expansion plans are becoming more concrete, including a new 240-megawatt data center facility in France. Upon completion, this site is expected to rank among the largest in Europe. Overall, Nebius plans to add nine new locations by 2026, which would more than double its current number of sites.

As the trading week closed, the market's focus remained fixed on one key issue: the company's ability to execute this large-scale capacity build-out as planned and to efficiently convert its existing order backlog into revenue.