Prosus NV
Publication date: December 17, 2024
- Year of incorporation: 2019 (taken from Naspers Limited, South Africa)
- Year added to the AEX: 2019
- Highest price ever: approximately €50 in February 2021
- Average trading volume: Approximately 3.1 million shares per day
- Average performance since AEX entry:+36.48%
Introduction of the company
Prosus N.V. is a leading international technology company and one of the largest investment companies in the world, specializing in Internet companies. It is headquartered in Amsterdam, the Netherlands. Prosus is listed on Euronext Amsterdam under the symbol PRX. The company focuses on innovative sectors such as e-commerce, online marketplaces, fintech, food delivery, and education technology.
Core figures & performance
In 2023, Prosus reported revenues of €5.48 billion, with significant growth in sectors such as food delivery and fintech. The company realized profits of €9.59 billion in 2023. With a market capitalization of approximately €96 billion, Prosus is among the larger companies within the AEX. A significant portion of Prosus' value comes from its 26% stake in Tencent, the Chinese technology group known for popular platforms such as WeChat. In addition, Prosus has significant investments in high-growth companies such as Delivery Hero, PayU, OLX Group, and several other innovative startups.
History & development
Prosus was founded in 2019 as a subsidiary of South African media company Naspers. It was formed by separating Naspers' international investments and listing them separately on the Amsterdam Stock Exchange. This strategic move was made to make the value of its international technology investments more visible to investors. Since then, Prosus has significantly expanded its portfolio and positioned itself as a global leader in technology investments.
A key feature of Prosus is its focus on emerging markets, where it invests in companies with high growth potential. Through this strategic approach, Prosus has gained access to some of the most promising companies globally, such as Tencent in China and PayU in India.
Sector & competition
Prosus operates within the global technology and investment sector, where it competes with other major investment firms such as SoftBank, Alphabet Ventures, and Berkshire Hathaway. The company is distinguished by its focus on emerging markets and technologies focused on the digital economy. This strategy provides Prosus with access to high-growth sectors such as fintech, food delivery, and online marketplaces.
Influence of Prosus on the AEX
Prosus has a significant influence on the AEX, with a weighting of 5.23% in 2024. The stake in Tencent is an important value component for Prosus and has a direct influence on the share price. Because of this influence, Prosus is one of the heavyweights within the AEX and can significantly influence the index in the event of large swings in the share price.
Investment analysis & outlook
Prosus is viewed by analysts as an attractive stock because of its exposure to some of the world's fastest-growing markets and technologies. Its strong focus on diversification and technological innovation provides a solid foundation for long-term growth. Risks, however, lie in exposure to emerging markets, geopolitical tensions (especially in China), and regulations surrounding technology companies.
The outlook remains positive, especially with the growth in e-commerce, fintech, and food delivery. Analysts expect Prosus to continue to diversify its portfolio and strengthen its position in high-growth markets.
Price development: analysis and trends
Below is the chart of Prosus' share price movement over the past 5 years. The chart shows a period of strong growth in 2020, followed by fluctuations due to macroeconomic factors and changes in Chinese regulations.
Despite this volatility, the long-term trend remains positive, underscoring Prosus' solid underlying value. On Dec. 11, we already wrote about Prosus and its promising advance, which may hold the prospect of further growth. Read back here our expectations, including the new price target for Prosus N.V.
News & updates
Recently, Prosus reduced its stake in Tencent slightly to free up capital for new investments and share repurchases. In addition, the company continues to invest in high-growth sectors, such as education technology, and healthcare. These steps underscore Prosus' strategy to create value for its shareholders and continue to position itself as a global technology leader.
For more information on Prosus' operations, performance, and strategy, please visit its official website: www.prosus.com.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' insights and experiences. As such, they are for educational purposes only.