PROSUS Stock: 6.92% Decline Over the Week Despite Completion of Just Eat Takeaway Acquisition

Market Reaction to Prosus Announcement

The trading session on Friday, October 17, was particularly telling of the market's reaction to Prosus's announcement. While the group confirmed it now holds 98.19% of Just Eat Takeaway's capital, with an additional 8.06% of shares acquired after the acceptance period closed on Thursday, Prosus's stock fell by 2.8% in Amsterdam to settle at 57.06 euros during the session. This decrease is part of a broader weekly movement that saw the price lose nearly 7% since the beginning of the week. The transaction with Just Eat Takeaway represents a significant milestone in the group's consolidation strategy in the global meal delivery sector. This acquisition values Just Eat Takeaway at approximately 4.1 billion euros and significantly strengthens Prosus's presence in the European meal delivery market, a sector that represents one of the pillars of growth for the group alongside its activities in classified ads, payments, and financial technologies. The stock's evolution over the week occurred in sustained trading volumes, reflecting the particular attention of investors to this large-scale operation. Despite the observed decline, the current valuation keeps Prosus's stock well above its levels at the beginning of the year, confirming market interest in this Dutch technology conglomerate.

Prosus's Business Model

Prosus's business model primarily relies on its 23% stake in Chinese giant Tencent Holdings, which accounts for more than 80% of the group's net asset value according to analysts. This indirect exposure to the Chinese technology ecosystem is a major attraction for investors, especially as Tencent recently posted solid quarterly results with a revenue growth of 15% in the second quarter, driven by strong performances in video gaming and strategic investments in artificial intelligence. Beyond Tencent, Prosus implements a diversified investment strategy across several geographical areas, including India, Latin America, and Europe, with a portfolio including stakes in meal delivery companies like iFood in Brazil, Delivery Hero, and Swiggy. The group, predominantly owned by South African company Naspers, has invested over 10 billion dollars in the global meal delivery sector and now operates in more than 70 countries. As of October 6, ten analysts recommended buying the stock, three suggested strengthening positions, and four advised holding, with a median target price set at 62.94 euros. This target price implies an upside potential of about 10.89% compared to the current closing price, suggesting that market professionals find the current valuation attractive despite the weekly correction observed. Net earnings per share forecasts for the 2025 fiscal year are set at 2.63 euros, up 51% from the previous year.

Technical Outlook

Technically, the stock is in a contrasting configuration after this week's decline. The closing price of 57.58 euros is above the 50-day moving average at 55.80 euros and the 200-day moving average at 54.32 euros, indicating an underlying trend that remains positive despite the recent pullback. The MACD momentum indicator displays a positive signal with a line at 0.86, suggesting that the medium-term upward momentum is not completely compromised by the weekly correction. However, the Relative Strength Index (RSI) stands at 39, placing the stock in a neutral to slightly oversold zone, which could indicate a potential for a technical rebound in the short term if buying volumes materialize. The Bollinger Bands frame the current price between an upper bound at 62.86 euros and a lower bound at 56.40 euros, indicating that the stock is moving in the middle part of its recent volatility channel. The identified support level at 53.05 euros is a technical floor to watch in case of further correction, while the resistance at 62.39 euros represents a short-term target in case of a bullish recovery. It is also worth noting that the stock's beta coefficient, established at 0.22, signals a particularly low sensitivity to overall market fluctuations, a characteristic that may interest investors seeking less volatile exposure to technology stocks.