NEBIUS (NBIS) experienced a significant pre-market plunge of 5.19% on Monday, continuing a recent downward trend for the systems software company.

The decline was driven by multiple factors including broad-based weakness across the Systems Software sector, which saw several major names under pressure during pre-market activity. Additionally, market sentiment remains cautious due to reports that Meta is building an internal Meta Compute division to commercialize surplus cloud computing capacity externally, raising competitive concerns for NEBIUS despite analysts noting Meta may lack excess capacity for resale.

Further weighing on the stock, the options market recently recorded large-scale bearish positioning with institutional funds showing net bearish bets exceeding $18 million, signaling continued cautious sentiment among short-term traders. The stock has cumulatively retreated over 20% since early July as these competitive concerns have persisted.