Great Naspers Earnings but It’s on Tencent, JSE: NPN Share Price Sticks to Support
Naspers continues to post strong operational and earnings momentum in 2025, but its share price has paused after giving back early gains.
Quick overview
- Naspers has shown strong operational and earnings momentum in 2025, but its share price has recently paused after an initial rally.
- Despite a slight pullback, the stock remains above key long-term support levels, indicating a consolidation phase rather than a trend reversal.
- The company reported robust financial results, particularly in its ecommerce segment, highlighting operational progress and efficiency improvements.
- Naspers' performance continues to be significantly influenced by its stake in Tencent, which remains a major component of its overall value.
Naspers continues to post strong operational and earnings momentum in 2025, but its share price has paused after giving back early gains.
Share Price Pauses After A Powerful Rally
Naspers has been one of the standout performers on the JSE in 2025, with its share price rising sharply from its January levels to reach fresh highs in early October. The rally reflected growing confidence in the group’s improving profitability and expanding digital ecosystem. However, the latest trading session showed a more cautious tone. Despite opening higher following the earnings release, the stock surrendered most of those early gains and closed slightly lower on the day.
This pullback has not changed the broader technical picture. The stock remains well above its key long-term support levels, and the recent weakness appears more like consolidation after an exceptional run rather than a sign of a trend reversal. Periods of sideways movement or mild profit-taking are common after such strong advances.
Moving Averages Continue To Support The Trend
From a technical standpoint, Naspers is still positioned within an established uptrend. The 20-week simple moving average (gray) remains a solid point of support and has consistently acted as a cushion during previous pullbacks this year. As long as the price holds above this zone, the broader bullish structure remains intact.
NPNJ Chart Weekly – Will Naspers Rebound off the 20 SMA?
While short-term volatility may persist, especially as investors digest recent results, the underlying chart pattern suggests that buyers are still in control over the medium to long term. Any further dips toward support levels may be viewed as potential opportunities rather than a fundamental breakdown.
Strong Results Highlight Operational Progress
Behind the price action, Naspers delivered a robust set of numbers for the first half of its financial year. Both Naspers and its consumer internet subsidiary, Prosus, reported solid improvements, driven primarily by stronger profitability in their ecommerce segment. Takealot, the group’s flagship local online retailer, recorded meaningful growth in gross merchandise value, while adjusted earnings saw a sharp rise, marking a notable turnaround in operational efficiency.
Other platforms within the group, including AutoTrader and Property24, continued to expand their offerings and integrate AI-powered features aimed at improving user experience and engagement. These initiatives reflect the company’s broader strategy of deepening its competitive edge in key digital verticals.
Tencent Continues To Drive A Large Portion Of Value
Despite progress across its own businesses, Naspers remains heavily influenced by its stake in Tencent. The contribution from Tencent continues to outweigh the profits generated from Naspers’ direct operations, underlining the scale of that investment. Even modest percentage changes in Tencent’s performance have an outsized impact on Naspers’ overall earnings profile.
Although Naspers has gradually reduced its Tencent holding to fund share buybacks and other investments, the Chinese tech giant still represents a substantial portion of the group’s underlying value. This concentration remains both a strength and a risk, depending on Tencent’s future performance and broader market conditions.
A Long-Term Story Still Intact
In summary, while the latest session did not produce a fresh upside breakout, Naspers’ long-term narrative remains compelling. Strong cash generation, improving margins in ecommerce, continued innovation across its platforms, and its strategic stake in Tencent all support a positive structural outlook.
The current pause in price action appears to be more of a resetting phase than a breakdown, and it may ultimately provide a foundation for the next leg higher, should market conditions remain supportive.
- 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
Save