Prosus Share Price Recovery Faces Pressure as Delivery Hero Sell to Uber and Global Tech Selloff Weigh
Prosus shares staged a strong July recovery after record profit growth and aggressive capital management improved investor confidence, but renewed weakness across global technology stocks and technical resistance have slowed the rebound.
Quick overview
- Prosus shares experienced a strong recovery in July due to record profit growth and aggressive capital management, but have recently pulled back amid renewed weakness in global technology stocks.
- The company announced plans to sell its remaining 16.8% stake in Delivery Hero to Uber, emphasizing its focus on portfolio optimization and capital discipline.
- Despite recent corrections, Prosus reported significant FY26 earnings growth, with revenue reaching $9.7 billion and adjusted EBITDA rising to $1.3 billion, boosting investor confidence.
- Technical challenges remain as the stock struggles to break above key resistance levels, indicating cautious sentiment among investors.
Prosus shares staged a strong July recovery after record profit growth and aggressive capital management improved investor confidence, but renewed weakness across global technology stocks and technical resistance have slowed the rebound.
Prosus Shares Pull Back After Strong July Recovery
Prosus N.V. (AEX: PRX) shares have lost some momentum after a powerful recovery attempt earlier in July, with the stock reversing lower over the past two trading sessions as global technology stocks faced renewed selling pressure.
The pullback comes after months of weakness, during which Prosus shares declined sharply from their November 2025 peak of R1,268. However, stronger-than-expected FY26 results, continued share buybacks, and improved profitability helped revive investor optimism that the prolonged downtrend could be stabilising.
Despite the recent correction, the company’s improving financial performance has strengthened the investment case, although the stock remains below key technical levels needed to confirm a longer-term recovery.
Delivery Hero Stake Sale Adds Strategic Focus
Prosus announced that it has provided an irrevocable undertaking to sell its remaining 16.8% stake in Delivery Hero SE to Uber Technologies once Uber’s acquisition offer becomes unconditional.
The transaction depends on Uber’s offer to acquire Delivery Hero at €41.50 per ordinary share. Uber currently owns 24.99% of Delivery Hero, with an additional 11.8% exposure through financial instruments.
The planned exit follows commitments made by Prosus to the European Commission during the approval process for its acquisition of Just Eat Takeaway.com. Regulators required Prosus to reduce its 26.5% stake in Delivery Hero.
As part of this process, Prosus previously sold around 4.5% of Delivery Hero shares to Uber on April 17 and another 5% stake to Aspex Management on May 11.
The disposal highlights Prosus’ continued focus on portfolio optimisation and capital discipline as it reshapes its global technology investments.
Technical Breakdown Shifts the Narrative
The most immediate support for Prosus is technical rather than fundamental. The stock has slipped below the 20 monthly SMA (gray) near R1,000 and reaching R726 last week. But the 50 SMA (yellow) seems to be offering support during the last few months. The price dipped below it, but has rebounded higher and seems like we might get the bullish reversal that investors have been hoping for, from here.
PRXJn Chart Monthly – The Uptrend Has Ended
On the weekly chart, the break below the 50-week moving average (yellow) and the 100 SMA (green). However the decline has stalled at the 200 weekly SMA (purple) and we’re seeing a rebound. So, the pullback might well be over, but buyers need to push the price above the other SMAs for the uptrend to be officially bullish again.
PRXJn Chart Weekly – The Uptrend Has Ended
Buybacks Signal Management Confidence
Investor confidence has also been supported by Prosus’ ongoing share repurchase programme.
During the week of May 11–15, Prosus bought approximately 2.5 million shares at an average price of €39.1689, representing nearly €99.6 million in capital returned to shareholders.
Meanwhile, majority shareholder Naspers continued increasing its exposure by purchasing more than 1.05 million Prosus shares worth over R908 million.
The aggressive buyback activity has been interpreted as a sign that management believes the stock remains undervalued despite recent market volatility.
Strong FY26 Earnings Spark Investor Optimism
Prosus shares initially jumped after the company delivered a strong FY26 financial update, rising 4.37% to R730 after briefly trading below the R700 level.
The earnings report provided investors with renewed confidence following a challenging period for the stock. Revenue surged 57% to US$9.7 billion, while adjusted core profit (EBITDA) increased 84% to US$1.3 billion.
The company also reported net profit of US$11.64 billion, supported by stronger operating performance and improved cash generation across its portfolio.
Management’s ability to deliver significant profit growth while maintaining investment in key businesses, including Just Eat Takeaway.com and iFood, helped improve sentiment around the company’s long-term strategy.
Prosus expects broadly flat EBITDA growth in fiscal 2027 as it continues investing in expansion opportunities while maintaining financial discipline.
Key Financial Highlights
-
- Revenue: Reached $9.7 billion, up from $6.17 billion the previous year.
- Core Headline Earnings per Share: Jumped 24% to $3.78.
- Adjusted EBITDA: Rose to $1.3 billion.
- Free Cash Flow: Hit a record $1.5 billion, up from $1 billion a year earlier.
- Net Income: Totaled $11.64 billion (compared to $12.37 billion in FY25), driven largely by dividends and stakes in Tencent.
-
- Food Delivery: The iFood platform in Latin America saw adjusted EBITDA grow 178% to $400 million. Just Eat Takeaway.com contributed $1.9 billion to revenue and $83 million in adjusted EBITDA.
- Classifieds & Marketplaces: OLX recorded an adjusted EBITDA of $481 million, achieving 48% profitability.
- Operating Loss: Despite strong core profitability, the company recorded an operating loss of $173 million due to acquisition-related costs and aggressive ecosystem expansion.
- Acquisitions: The company deployed about $8.5 billion in acquisitions, including Just Eat Takeaway.com, La Centrale, and Despegar, to expand its European and Latin American presence.
- Shareholder Returns: Prosus plans a $5 billion share buyback program and raised its full-year dividend by 40% to 28 euro cents per share.
- Corporate Shift: CEO Fabricio Bloisi is pushing to reduce the company’s historic reliance on its massive Tencent holding by building and scaling its own directly-managed global businesses
Positive Points
- Prosus reported a significant revenue growth to $9.7 billion and an EBITDA of $1.3 billion, showcasing strong financial performance.
- The company achieved a remarkable increase in free cash flow by $2 billion over the last three years, indicating improved financial health.
- Prosus NV (PROSY) successfully disposed of $2 billion in assets, increased dividends by 100%, and completed a $46 billion buyback, demonstrating disciplined capital management.
- Key businesses such as OLX and iFood are driving revenue growth, with OLX achieving 48% profitability, one of the best in its segment.
- The company is leveraging its ecosystem to enhance growth, with Despegar and La Centrale benefiting significantly from integration into Prosus NV (PROSY)’s ecosystem.
Negative Points
- Despite improvements, some businesses like PayU are only beginning to show profitability, with a modest 2% profitability rate.
- Just Eat had been experiencing negative growth of minus 7% over the past four years before recent improvements, indicating past challenges.
- The company is heavily reliant on its ecosystem strategy, which may pose risks if integration efforts do not yield expected results.
- Prosus NV (PROSY) is investing heavily in AI and innovation, which could be costly and may not guarantee immediate returns.
- The company’s growth strategy involves significant acquisitions and divestments, which could lead to potential integration challenges and financial risks.
Technical Outlook Remains Challenging
Although fundamentals have improved, Prosus shares continue to face technical challenges after the broader 2026 decline.
The recent rally improved sentiment, but the rejection near resistance levels suggests investors remain cautious. A sustained recovery would require the stock to break above key technical barriers and attract renewed demand from global investors.
For now, Prosus remains supported by stronger earnings, disciplined capital allocation, portfolio restructuring, and shareholder returns. However, continued weakness in global technology markets could limit upside momentum in the near term.
The company’s next challenge will be proving that improving fundamentals can translate into a lasting share price recovery after months of pressure.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
- Read our latest reviews on: Avatrade, Exness, HFM and XM
Related Articles
Sidebar rates
Related Posts
SaveAva
