Nebius shares rise 4.6% on Truist backing, but funding question remains open
Nebius stock gained 4.64% to $173.16 after Truist reiterated its Buy rating and $355 target. According to GuruFocus, operating cash still falls well short of infrastructure spending.
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what happened
According to GuruFocus, shares of AI-cloud infrastructure provider Nebius climbed 4.64% to $173.16 by 11:40 a.m. ET on October 19. Analyst support helped the move: Truist reiterated its Buy rating and $355 price target on Sunday, arguing that another AI-cloud provider's failed flotation does not automatically undermine demand for firms with large contracted business.
Nebius reported second-quarter revenue of $582.3 million, up 454%, and adjusted EBITDA of $236.2 million. It still posted a GAAP loss of $190.4 million from continuing operations. Operating cash inflow was $2.25 billion against $5.66 billion spent on property, equipment and intangible assets, leaving a gap of about $3.41 billion and covering roughly 39.7% of the investment bill.
why it matters
For investors, the key question is not demand but whether the company can narrow the gap between cash generation and capacity construction. The next earnings report will show whether that coverage improves as new capacity begins generating revenue.
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- Nebius Stocks Rise 4.64% With Truist's $355 Call Facing a Cash-Funding Test — gurufocus.com, 19 October 2026 at 19:50 UTC
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