OPRA's first-quarter 2025 results are likely to have benefited from strong advertising revenue growth, continued AI integration, and steady product innovation.
OPRA's diverse product line, strong user growth and strategic expansion into AI and e-commerce drive growth.
Opera Limited (OPRA) is technically in oversold territory now, so the heavy selling pressure might have exhausted. This along with strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal for the stock.
Opera (OPRA -1.74%) may not be a household name in the technology industry, but the stock has delivered healthy gains of 38% since the beginning of 2024, outpacing the Nasdaq-100 Technology Sector index's 10% increase by a solid margin during this period.
Opera Limited's stock remains a "Buy" due to strong growth in gaming, AI, and e-commerce sectors, despite a recent earnings miss. The firm's 29% YoY revenue growth, driven by a 38% surge in advertising revenue and a record-high ARPU, signals robust performance. Valuation metrics indicate significant upside potential, with a forward P/E ratio of 8.7x and a 30% implied equity value increase by FY2025.
Opera reported a stellar Q4'24 pre-market and guided higher than street expectations. Shares rose 12% during the day, but traded down to -2% toward the close. Opera's gaming browser and early AI assistant integration have proven successful. Financials are looking great, healthily growing revenue and margins. While many note the risks relating to Chinese majority owners, the benefits of this are rarely emphasized. From current levels, I expect around 50% upside.
The Opera stock price has pulled back in the last two consecutive weeks, erasing some of the gains made earlier this year. OPRA has dropped from $22.5 to $18 as investors remained concerns about its growth trajectory.
Opera Limited's robust financial health, expanding user base, and innovative AI-driven products suggest significant growth potential despite market skepticism and competitive threats. Q4 revenue surged 38% year-over-year, driven by strong advertising and search revenue, with continued growth expected through 2025. Opera's expansion in high-value markets like North America and Europe boosts ARPU, while its gaming browser, Opera GX, shows impressive user and engagement growth.
Opera Limited (NASDAQ:OPRA ) Q4 2024 Earnings Conference Call February 27, 2025 8:00 AM ET Company Participants Matt Wolfson - Head of Investor Relations Song Lin - Co-Chief Executive Officer Frode Jacobsen - Chief Financial Officer Conference Call Participants Eric Sheridan - Goldman Sachs Naved Khan - B. Riley Securities Lance Vitanza - TD Cowen Mark Argento - Lake Street Alicia Yap - Citi Jim Callahan - Piper Sandler Operator Welcome to the Opera Limited Fourth Quarter 2024 Earnings Call.
Although the revenue and EPS for Opera Limited (OPRA) give a sense of how its business performed in the quarter ended December 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
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Opera Limited is emerging as a compelling investment opportunity, expanding into AI, gaming, and digital advertising markets. The company offers unique, niche-focused browsers, including AI-integrated and gaming-centric options, setting it apart from mass-market competitors. Opera's digital advertising business, leveraging first-party data for AI-driven ad placements, shows high user engagement and revenue potential.