Naspers Share Price Eases Ahead of Earnings – Buy the JSE: NPN Dip for New Record Highs?
Naspers (JSE: NPN) is riding a wave of investor optimism in 2025 but has retreated before Q1 earnings to be released on Sunday evening.
Quick overview
- Naspers has shown strong resilience since January, with its share price climbing from 3,500 ZAC to a record high of 5,520 ZAC by mid-May.
- The company's recent earnings report indicated a 19.84% rise in net income and a 12.46% increase in revenue year-over-year, boosting investor confidence.
- Naspers' aggressive stock buyback program has improved earnings per share and valuation metrics, reflecting management's confidence in long-term prospects.
- Analysts are optimistic about Naspers' upcoming earnings report, projecting significant growth that could lead to a breakout above the current resistance level.
Naspers (JSE: NPN) is riding a wave of investor optimism in 2025 but has retreated before Q1 earnings to be released on Sunday evening.
A Resilient Climb from January Lows
Since trading near 3,500 ZAC in mid-January, Naspers Ltd. has displayed strong technical and fundamental resilience. By mid-May, the share price surged to a record high of 5,520 ZAC, forming a new resistance zone. While the stock experienced a sharp pullback in early April to around 4,000 ZAC, the 200-day simple moving average (SMA) acted as support, triggering a solid recovery.
NPN Stock Chart Daily – Will the 20 SMA Hold Again?
Late May brought another retracement, but the 20-day SMA provided a floor for buyers. Despite not breaking past the May high, the stock remains in an uptrend with higher highs and higher lows since early 2022. Key technical indicators suggest the bullish momentum is intact and the upcoming earnings data might send the NPN shares back on the uptrend toward new highs
Strong Earnings Fuel Optimism
The recent surge is backed by robust fundamentals. Naspers’ latest earnings report revealed a 19.84% rise in net income and a 12.46% increase in revenue year-over-year. These solid results reflect the company’s improved operating performance and focused strategy execution.
Adding to investor confidence, Naspers’ global investment arm, Prosus, continues to perform strongly. Its portfolio, which includes a major stake in Tencent, has added significant value to the parent company’s bottom line. The anticipated earnings beat has further boosted sentiment.
Strategic Buybacks Paying Off
Naspers’ aggressive stock repurchase program has reduced outstanding shares and increased earnings per share (EPS), improving valuation metrics and signaling management’s confidence in long-term prospects. Analysts suggest this capital discipline is one of the key drivers of the stock’s current uptrend.
Earnings Preview Points to Accelerating Growth
- Naspers and Prosus recently issued a bullish trading update ahead of their full-year earnings report, expected on June 23, 2025. Naspers projects:
- Core headline earnings per share (HEPS) to rise between 56% and 63%
- HEPS from continuing operations to climb between 90% and 96%
Meanwhile, Prosus forecasts:
- Core HEPS to grow between 53.9% and 63.2%
- Headline earnings for continuing operations to soar by 90.9% to 100%
These forward-looking estimates underscore the accelerating momentum within both companies and are likely to support further price gains.
Outlook: With support from both technicals and strong fundamentals, Naspers appears well-positioned for further upside. Analysts are optimistic that its digital business model, strategic execution, and disciplined capital returns will continue to drive performance through 2025.
Should the company confirm its strong earnings guidance on June 23, a breakout above the 5,520 ZAC resistance could open the door toward new all-time highs.
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