Opera's pivot to higher ARPU regions and improved advertising opportunities have already delivered the excellent top/ bottom-line performances. These have directly triggered the richer balance sheet and excellent shareholder returns through dividend incomes, building upon its high-growth cadence. With APP also highlighting the robust e-commerce advertising prospects, we believe that OPRA is likely to deliver beat and raise performances ahead.
Opera battles with rising expenses and flat user engagement, which challenge its ability to convert growth into sustainable returns.
Schaeffer's Top 2025 pick Opera Ltd (NASDAQ:OPRA) is up 4.4% to trade at $16.21 today, after the Norway-based web browser reported a first-quarter earnings beat and hiked its 2025 fiscal-year forecast.
Opera Limited (NASDAQ:OPRA ) Q1 2025 Earnings Conference Call April 28, 2025 8:00 AM ET Company Participants Matt Wolfson - Head of IR Song Lin - Co-CEO Frode Jacobsen - CFO Conference Call Participants Naved Khan - B. Riley Securities Lance Vitanza - TD Cowen Eric Sheridan - Goldman Sachs Mark Argento - Lake Street Jim Callahan - Piper Sandler Operator Welcome to the Opera Limited First Quarter 2025 Earnings Call.
While the top- and bottom-line numbers for Opera Limited (OPRA) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
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.