Naspers Share Price Down 30% From Peak but Support Forms as Growth Story Remains Intact

Quick overview

Naspers shares remain under pressure after a sharp correction, but strong fundamentals and key support levels suggest the broader uptrend may still be intact.

Share Price Correction Finds Support

Shares of Naspers have declined significantly since peaking in October 2025, falling roughly 30% from above R1,030 to around R840.

After a strong rally earlier in the year, the stock entered a corrective phase, with price action struggling to regain upward momentum. While the R840 level has emerged as a key support zone, multiple rebound attempts have been capped by resistance from moving averages, resulting in a pattern of lower highs.

Despite this weakness, the broader technical structure still points to consolidation rather than a full trend reversal, suggesting the longer-term bullish trajectory could remain intact if support continues to hold.

Earnings Growth Reinforces Momentum

From a fundamental perspective, Naspers continues to deliver strong operational performance.

For the first half of fiscal 2026, core headline earnings rose 46% to $3.1 billion, while revenue increased 20% to $7.2 billion. This growth has been largely driven by the company’s expanding e-commerce portfolio.

Platforms such as Takealot have shown solid gains in gross merchandise value, supported by improved cost discipline and rising profitability. Additional assets, including AutoTrader and Property24, have also contributed positively, benefiting from increased digital adoption and the integration of AI-driven tools to enhance user engagement.

These results highlight the strength of Naspers’ underlying businesses, even as the share price remains under pressure.

Moving Averages Continue to Support the Trend

From a technical perspective, Naspers remains positioned within a well-established uptrend. During the retracement, the share price slipped below the 50-week simple moving average (yellow) and then it slipped below the 100 SMA (green). However the decline has stalled and we saw an attempt at climbing higher in March, popping above R1,000 shortly but couldn’t hold the gains and reversed lower.

NPNJ Chart Weekly – Naspers Found Support at the 50 SMA

The larger trend remains bullish, but the sentiment is bearish mid-term, so there might be further pullbacks. The major support zone comes at around R800 where the 200 weekly SMA (purple) also stands. So, that would be a luring place to go long on Naspers if the share price retreats down there.

Portfolio Adjustments Signal Strategic Focus

Naspers has also remained active on the capital allocation front.

The company recently sold 12 million shares in Remitly, raising approximately $191.8 million. This move reflects its ongoing strategy of recycling capital—unlocking value from mature investments while redirecting funds toward higher-growth opportunities or shareholder returns.

Such portfolio adjustments are closely monitored by investors, as they provide insight into management’s priorities and long-term vision.

Tencent Stake Remains Central

A critical pillar of Naspers’ valuation remains its stake in Tencent.

Although the company has gradually reduced its exposure over time to support buybacks and diversification, Tencent continues to account for a substantial portion of Naspers’ intrinsic value. This creates both opportunity and risk, as fluctuations in Tencent’s performance can significantly influence Naspers’ share price.

• Revenue: $7.2 billion, with e-commerce revenue up 21% to $7.0 billion.
• Profitability: Adjusted EBIT turned positive to $130 million (from a $154M loss prior year).
• E-commerce Growth: Key units like iFood grew adjusted EBIT by 178%, while classifieds rose 61%.
• Earnings Per Share (EPS): For the half-year ending 09/2025, diluted EPS was US$2.91. For the full-year 2025, EPS was US$31.42.
• Outlook: The group is on track with a three-year plan to double e-commerce revenue and triple adjusted EBIT. 

• E-commerce Surge: The group’s e-commerce segments achieved significant profitability, including eMAG and Takealot in South Africa.
• Financial Health: The company continues to invest in AI-driven startups and holds strong cash reserves ($6.54B in FY23H1, according to older data, though current cash flow is strong).
• Future Focus: Continued investment is targeted at AI, food delivery, and classifieds across Latin America, Europe, and India.

Outlook Hinges on Sentiment Shift

While short-term sentiment remains cautious, Naspers’ strong earnings growth, improving e-commerce profitability, and disciplined capital allocation support its long-term investment case.

If the stock can maintain its current support levels and break above key resistance, the recent pullback may ultimately be viewed as a healthy consolidation phase within a broader uptrend potential and risk, particularly given regulatory and macroeconomic uncertainty in China’s technology sector.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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