Did Tencent Gains and Meesho IPO Just Shift Prosus' (ENXTAM:PRX) Investment Narrative?

• In recent days, Prosus benefited from Tencent’s gains in Hong Kong and the successful listing of Indian e-commerce firm Meesho, where it holds sizeable stakes.
• These portfolio moves highlight how Prosus’s value is closely tied to the market performance and listing outcomes of its underlying technology holdings.
• We’ll now explore how Meesho’s listing, in particular, feeds into Prosus’s broader investment narrative and future portfolio monetisation.

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Prosus Investment Narrative Recap

To own Prosus, you need to believe in its ability to turn a collection of tech stakes into growing, monetisable value, while managing execution and capital allocation risks. The recent lift from Tencent and Meesho looks more like a short term sentiment boost than a change to the core near term catalyst, which still centres on how effectively Prosus converts its investment ecosystem and internal know how into sustained earnings and cash flow.

The ongoing, large scale buyback programme, which has retired over 27% of issued shares for about US$33,500 million, is particularly relevant here, as it amplifies the impact of any future portfolio monetisation on per share metrics. Against that backdrop, moves in assets such as Meesho mainly matter to the extent they support higher, more visible earnings from Prosus’s technology holdings over time.

Yet, while the recent gains are encouraging, investors should be aware that Prosus’s heavy use of internal knowledge sharing and aggressive investment goals could...

Read the full narrative on Prosus (it's free!)

Prosus' narrative projects $9.9 billion revenue and $11.8 billion earnings by 2028.

Uncover how Prosus' forecasts yield a €63.25 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community currently see Prosus’s fair value anywhere between €35.71 and €80, underlining how far opinions can diverge. When you set those views against the execution risk in Prosus’s ecosystem led investment model, it becomes even more important to compare multiple perspectives before deciding how this stock might fit into your portfolio.

Explore 5 other fair value estimates on Prosus - why the stock might be worth 33% less than the current price!

Build Your Own Prosus Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Prosus research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Prosus research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Prosus' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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