Nebius Group (NASDAQ:NBIS) extended its steep sell-off as investors dumped neocloud stocks amid ongoing jitters in the artificial intelligence industry. Nebius Group’s Short Interest is Rising as AI Jitters Continue American investors are shorting Nebius and other neocloud companies.
Its short interest is quickly rising and approaching the important milestone of 20%. This increase gained steam after Gartner (NASDAQ:IT) warned that these firms face substantial impairment at the end of 2030.
Some popular analysts have also warned about the potential bursting of the AI bubble. Nebius is also facing other challenges, including the rising cost of doing business, with the prices of chips, memory, and servers continuing rising.
At the same time, its depreciation costs are rising. AI Talent After Its Own Layoffs as AI Startup Faces Bankruptcy Nebius is also facing financing challenges, with bond yields continuing to rise.
3%, its highest level in two decades. As a result, the company will need to pay a higher rate for future debt financing.
As a result, the company may decide to use its equity to raise capital. It raised over $2 billion in equity financing in the second quarter and has over $2 billion left that it can raise.
As a result, its outstanding shares have jumped to 238 million from 200 million last year. Nebius Stock Technicals Suggest it Has More Downside NBIS stock chart | Source: TradingVideo The daily chart shows that NBIS stock has been in a strong sell-off this month.
At the same time, it is nearing the 50% Fibonacci Retracement level. It has also moved below the 200-day Exponential Moving Average (EMA) and the Supertrend indicator.
These technicals suggest that the stock may continue falling, potentially to $146, its lowest level in August. 8% Fibonacci Retracement of $125.
