Nebius Group (NBIS) saw its stock price plummet 5.18% in after-hours trading on Thursday, following the announcement of a $1 billion private placement of convertible notes. This sharp decline comes on the heels of a significant intraday rally, where the stock had surged by over 19% earlier in the day.

The after-hours sell-off appears to be a direct response to the company's latest financial move. On June 5, 2025, Nebius Group N.V. concluded a private placement of $1 billion in senior unsecured convertible notes. While this capital raise strengthens the company's financial position, it has sparked concerns among investors about potential stock dilution, leading to the sharp after-hours decline.

Interestingly, the stock had experienced a substantial boost earlier in the day, driven by bullish analyst coverage. London-based Arete Research analyst Andrew Beale initiated coverage with a "buy" rating and set an ambitious price target of $84, representing a 113% upside from the previous day's close. Beale's optimism was based on Nebius' impressive first-quarter revenue growth of 385% and its strong position in the AI cloud services market. However, the enthusiasm generated by this positive analyst outlook was quickly overshadowed by the convertible notes announcement, highlighting the market's sensitivity to potential dilution concerns.