Prosus Share Price JSE Extends the Fall, Breaking Uptrend, but Fundamentals Hold Steady
Prosus entered late 2025 with exceptional momentum, but market turbulence has interrupted what had been one of the JSE’s strongest rallies..
Quick overview
- Prosus experienced significant growth in 2025, with shares nearly doubling before peaking at R1,265, driven by strong earnings from Tencent and a rebound in e-commerce.
- Despite strong operational results, including a 22% increase in e-commerce revenue, Prosus shares have fallen 17% from their highs due to deteriorating market sentiment towards technology stocks.
- The company has adjusted its Chinese holdings by selling $549 million of its stake in Meituan, reflecting a strategic shift amid market risks.
- Prosus reaffirmed its full-year revenue targets while reporting improved free cash flow and completing two acquisitions to strengthen its portfolio.
Prosus entered late 2025 with exceptional momentum, but market turbulence has interrupted what had been one of the JSE’s strongest rallies of the year.
Prosus Retreats After Hitting Record Highs
Prosus shares have enjoyed an explosive performance in 2025, nearly doubling before peaking in mid-November at a record R1,265, driven by Tencent’s robust earnings and a powerful rebound across its global e-commerce portfolio. This surge reflected strengthening margins, accelerating revenue, and a business mix increasingly aligned with long-term digital-commerce trends.
Operational Strength Amid Market Weakness
The company’s latest results underscore this momentum. Revenue at OLX rose 22% year-on-year in the first half of FY2026, or 17% when stripping out external distortions, reaching $473 million. This contributed to Prosus’s overall e-commerce revenue growing 22% to $3.6 billion, signalling broad operational progress even as performance varied across individual platforms. Cash-flow gains, tightened guidance, and disciplined portfolio management further reinforced confidence in the company’s longer-term trajectory.
Technical Breakdown Weighs on the Share Price
Despite the strong fundamentals, Prosus has faced a sharp reversal. The stock closed at R1,062 on Friday, down 9% for the week and now 17% below its highs as global sentiment toward AI and technology names deteriorated.
PRXJn Chart Weekly – The Uptrend Has Ended
On the technical front, Prosus has slipped beneath its key daily moving averages, leaving only the 200-day SMA near R1,000 as the next significant support, followed by the 2021 high slightly above R900.
Shift in China Exposure Adds New Complexity
Adding to the evolving narrative, Prosus confirmed for the first time that it sold $549 million worth of its stake in Chinese giant Meituan, including $249 million during the first half and another $300 million in October. The disclosure marks a notable adjustment in its Chinese holdings at a time when the group continues to manage both market risk and concentration within its portfolio.
Tencent’s Strong Showing Supports Prosus
Tencent’s latest results delivered another round of upside momentum for Prosus, which owns about 24% of the Chinese tech leader through Naspers. Tencent posted its third consecutive quarter of double-digit revenue growth, surpassing analyst expectations on the back of a revitalized gaming segment and the rollout of new AI-driven features across its messaging and gaming platforms. The continued outperformance highlighted Tencent’s resilience and its capacity to expand both locally and globally, reinforcing the value of Prosus’s stake at a time when broader tech sentiment has been increasingly volatile.
Prosus Interim Earning Resulst
ECommerce Results Overview
- Prosus reported eCommerce revenue of $3.62B for the six months ending September 2025, matching expectations and rising from $2.96B a year earlier.
- Adjusted EBITDA slightly beat forecasts at $530M (15% margin), up sharply from $229M.
- Adjusted EBIT landed at $400M, a touch below consensus, but well above last year’s $181M.
Performance Across Key Portfolio Companies
- iFood (Brazil): Delivered $880M revenue, comfortably ahead of the expected $782M; order growth of 11% largely matched projections.
- eMag (Romania): Missed expectations with $1.13B revenue versus the consensus $1.24B.
- Profitability Split: iFood posted a modest profit miss (~$5M), while eMag underperformed; stronger results from OLX helped offset weaker divisions.
Guidance and Strategic Moves
- Prosus reaffirmed full-year targets: $7.3B–$7.5B in eCommerce revenue and $1.1B–$1.2B in eCommerce adjusted EBITDA (excluding Just Eat Takeaway).
- Completed two acquisitions: La Centrale (November) and Just Eat Takeaway, which was delisted on November 17.
Cash Flow and Capital Allocation
- Free cash flow improved by roughly $399M to $1.3B including the Tencent dividend; excluding it, free cash flow swung to +$59M from –$104M.
- Prosus sold $4.6B worth of Tencent shares to fund buybacks.
- EPS changes had been pre-announced per JSE rules, with core headline EPS expected to rise 20.1%–28.5%.
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