Nebius Drops 4% After Pricing $5 Billion Convertible Note

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Nebius Group stock fell 4% to $214.80 midday Thursday after pricing a $5 billion convertible note offering overnight, dragging Cloudflare down 3% to $282.75 and Snowflake down 2% to $319.85 on dilution read-through fears. The deal was upsized from $4.5 billion and comprises $3 billion of 0.5% notes due 2030 and $2 billion of 4.5% notes due 2034, with expected net proceeds of $4.94 billion. Nebius also agreed to exchange $400 million of 2% notes due 2029 and $400 million of 3% notes due 2031 with a limited group of holders, who will receive 15.8 million Class A shares. CoreWeave stock held near its range, down only 1% to $89.68, confirming the drop is issuer-specific rather than a broad cloud rotation. The three sliding names gained anywhere from 48% to 167% year-to-date before today, making this a crowded-winner pullback that investors with narrow cloud exposure should expect to repeat.

Impact on stocks 4

Cloud & Digital Infrastructure▼ · 4 stocks
Nebius Group N.V.
NBIS
▼ NegativeCapitalrelevance

Priced $5B convertible note offering, dilutive to shareholders.

Cloudflare Inc
NET
▼ NegativeCapitalrelevance

Fell 3% on dilution read-through fears from Nebius's convertible offering.

Snowflake Inc.
SNOW
▼ NegativeCapitalrelevance

Fell 2% on dilution read-through fears from Nebius's convertible offering.

Theme Impact 1

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