Nebius Group NV (NASDAQ:NBIS) just pulled a page out of the playbook of market disruptors—slashing its share count while doubling down on AI ambitions.
The company announced it will cancel 40 million treasury shares and authorize a buyback of up to 20% of its Class A shares. On the surface, it looks like routine capital management. In reality, it's a bold declaration: Nebius is turning its stock into a limited edition, tightening supply just as demand for AI-driven names is heating up.
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The move comes as Nebius has already soared 126% year-to-date, putting it on the radar of investors who might have dismissed it as an underdog just months ago. With AI infrastructure partnerships tied to Nvidia Corp (NASDAQ:NVDA) and a $2.3 billion cash war chest, Nebius is signaling that it's not only financially sound but also strategically daring enough to play offense while others stay cautious.
Read Also: Half Of Nebius' Value Is Hiding In Plain Sight — And Wall Street's Missing It
Float Games And Short Squeeze Fuel
The cancellation of 40 million shares reduces outstanding supply immediately, enhancing earnings-per-share metrics and increasing ownership stakes for existing investors. Layer in the buyback program—which could scoop up a fifth of Class A shares over the next 18 months—and you've got a classic recipe for scarcity value.
A thinner float means short sellers have less room to maneuver, and if momentum continues, Nebius stock could force a short-covering rally. While the short interest lies at 7.27%, if you add in dark pool volume, you’re looking at a 32.69% off-exchange short volume.
For retail investors, this setup is the kind of asymmetric bet that sparks cult-like followings.
AI Future With A Twist
What sets Nebius apart is that it's not leaning on financial engineering alone. The Kansas City data center is already operational, a second U.S. cluster is in the works, and a pilot with Grubhub on autonomous delivery suggests it's willing to take bold bets outside the data hall. With projected 2025 revenues of $750 million to $1 billion, Nebius is showing it can blend vision with execution.
By shrinking its float and flexing its AI credentials, Nebius is essentially daring Wall Street to ignore it. If investors bite, Nebius stock could evolve from niche AI play into one of the market's most chased limited-edition stocks.
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