Megaport Shares (MP1) Pull Back From Highs In Test of Support

Megaport shares (ASX: MP1) have been a huge outperformer on the ASX this year. With MP1 having added 79.1% since the start of 2025, new 52 week highs of $14.37 were hit in yesterday’s session, only for the stock to pull back 6.01% in today’s session. A pause, or a retracement to find near term support can be a healthy sign during a bullish run, with the $13 level looking like it is providing some level of friction.

Having earlier acted as resistance back in May, today’s low of $13.05 came close to a firm retest. In bouncing from there to a closing price of $13.29, there could be a period of consolidation ahead as a potential battleground range takes shape between bulls and bears.

The company, a global leader in Network as a Service (NaaS) solutions, has seen bullish momentum return since Q3 of last year. However, it’s crucial to remember Megaport’s volatile history. The stock reached its all-time high of AUD 22.00 in November 2021, only to experience significant pullbacks thereafter. A glance at the 5 year chart above highlights some of the volatility that has been inherent in the share price. This historical context underscores the inherent risks associated with investing in a growth-oriented technology company. The last time MP1 looked to test the current levels early last year, the move to the downside that followed was both swift, and sharp.

Looking ahead, revenue projections for the quarter ending June 30, 2025, are encouraging, estimated at AUD 73 million, representing a substantial 36.23% year-over-year growth. This anticipated revenue surge suggests that Megaport’s underlying business model is gaining traction, driven by increasing demand for its cloud connectivity solutions. However, these projections need to be converted into tangible earnings and sustained profitability, a key area where Megaport needs to deliver to satisfy investors.

Adding complexity to the picture are recent analyst forecasts. The target price range for MP1 shares varies widely, from a low of $9.50 to a high of $17.05. This divergence of opinion reflects the uncertainty surrounding Megaport’s future prospects. Some analysts remain optimistic about the company’s long-term growth potential, while others are more cautious, citing concerns about profitability and competitive pressures.