Shares of Nebius Group (NBIS) plummeted 5.01% in pre-market trading on Tuesday, despite the company announcing a significant $3 billion deal with Meta Platforms. The sharp decline comes as the AI infrastructure provider reported third-quarter results that fell short of analyst expectations and announced a potential share offering.

Nebius reported Q3 revenue of $146.1 million, marking a substantial 355% year-over-year increase. However, this figure fell short of the $155.1 million estimated by analysts. The company's adjusted net loss widened to $100.4 million from $39.7 million in the same period last year, further disappointing investors.

In an attempt to bolster its future growth prospects, Nebius announced a new agreement to deliver AI infrastructure to Meta, valued at approximately $3 billion over five years. However, this positive news was overshadowed by the company's announcement of an at-the-market equity program for up to 25 million Class A shares, raising concerns about potential share dilution.

The pre-market plunge highlights the market's focus on near-term financial performance and the challenges faced by high-growth tech companies in meeting investor expectations. Despite Nebius's impressive year-over-year growth and significant deal with Meta, investors appear to be prioritizing the revenue miss and potential dilution over long-term growth prospects in the rapidly evolving AI infrastructure market.