Core Viewpoint - Opera Limited (NASDAQ: OPRA) is identified as one of the 10 undervalued growth stocks for the next five years, with a Buy rating and a price target of $24, indicating an 82.4% upside potential from current levels [1]. Group 1: Financial Performance - Opera Limited raised its fourth-quarter revenue outlook, now expecting revenue to exceed $170 million, up from previous guidance of $162 million to $165 million, and surpassing the consensus estimate of $164.55 million [2]. - The company also increased its full-year revenue expectations, projecting total revenue for 2025 to exceed $608 million, reflecting over 26% growth compared to the previous year [2]. Group 2: User Growth and Market Position - CEO Lin Song emphasized that the Opera browser is designed for demanding users, which is beneficial as more users seek optimal browsers for web content and AI tools [3]. - The high-ARPU Western user base of Opera increased by approximately 2 million users sequentially from Q3 to Q4, providing a strong boost for monetization efforts [3]. Group 3: Product Offerings - Opera Limited provides web browsers and related products for PCs and mobile devices, including Opera Mini, Opera GX for PCs & Mobile, and Opera browser for Android & iOS [4].

Company Overview - Opera Limited's shares increased by 13.5% to close at $14.1, following a period of 12.7% loss over the past four weeks, indicating a significant rebound in stock performance [1] - The company is benefiting from its products, including Opera Neon and Agentic AI, along with an expansion of Minipay Wallet and raised financial guidance [1] Earnings Expectations - Opera Limited is expected to report quarterly earnings of $0.33 per share, reflecting a year-over-year increase of 3.1% [2] - Revenue projections for the upcoming quarter stand at $165 million, which is a 13.2% increase compared to the same quarter last year [2] Stock Performance Insights - The consensus EPS estimate for Opera has remained unchanged over the last 30 days, suggesting that stock price movements may not sustain without trends in earnings estimate revisions [3] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [3] Industry Context - Opera Limited is part of the Zacks Internet - Content industry, which includes other companies like Shutterstock [3] - Shutterstock's consensus EPS estimate for its upcoming report is $1.05, representing a significant year-over-year increase of 56.7%, and it currently holds a Zacks Rank of 2 (Buy) [4]

Core Viewpoint - During turbulent market conditions, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends to shareholders [1]. Group 1: Investment Strategy - Investors are increasingly turning to dividend-yielding stocks as a strategy to navigate market uncertainty [1]. - High free cash flow companies are preferred for their ability to provide consistent dividend payouts [1]. Group 2: Analyst Ratings - The article highlights the ratings of the most accurate analysts for three high-yielding stocks in the information technology sector [2]. - The mentioned stocks include HP Inc (NYSE:HPQ), Skyworks Solutions Inc (NASDAQ:SWKS), and Opera Ltd (NASDAQ:OPRA) [3].

Core Thesis - The investment case for Opera Limited (OPRA) is based on a classic value setup in the tech market, despite carrying meaningful risks [2] Company Overview - Opera Limited provides mobile and PC web browsers and related products and services both in Norway and internationally [2] Risks - Concerns include the potential disruption of traditional browsers by AI-driven interfaces, heavy Chinese ownership, and significant revenue concentration from Google [3] Valuation and Financials - Opera's stock has historically traded between $10 and $20 per share, currently near the lower end at just above $14, indicating potential upside [4] - The company is profitable, has almost no debt, and returns capital to shareholders through semiannual dividends, including a recent $0.40 payout [4] - Revenue is growing at approximately 23% year over year, with improved monetization despite a modest decline in total users [5] - With a market capitalization of roughly $1.3 billion, Opera trades at about 1.9x EV-to-revenue and 9–11x EV-to-EBITDA, which appear undemanding given its profitability and growth profile [5] Investment Opportunity - Opera holds a 9.44% stake in Opay, a profitable African fintech platform valued at $2 billion in 2021, but carried on Opera's balance sheet at a conservative $258 million [6] - With potential IPO signals for Opay within the next one to three years, its valuation could rise to $4 billion or more, implying Opera's stake could be worth $400–600 million [7] - This potential value could be monetized and returned to shareholders, suggesting that Opera's stock is materially undervalued at current levels [7]

Core Viewpoint - Opera's shares surged over 15% following the announcement of expanded support for Tether's USDT and XAUT in its MiniPay wallet, enhancing access to dollar-backed and gold-backed cryptocurrencies for users in emerging markets [1][3]. Group 1: Share Performance - Opera's shares fell to a low of $12.40 before the announcement, then rose to $14.65 post-announcement [3]. - The MiniPay wallet has 12.6 million activated wallets and over 3.64 million on-chain users, indicating significant user engagement [3]. Group 2: MiniPay Features - MiniPay connects users to on- and off-ramp providers like Binance and Fonbank, facilitating transactions between fiat and crypto [4]. - The wallet processed over $153 million in stablecoin transactions in December alone, showcasing its transaction volume [3]. Group 3: Tether's Financial Performance - Tether reported over $10 billion in net profit for 2025, driven by the growth of USDT and its U.S. Treasury holdings [5]. - Tether is purchasing up to $1 billion of gold per month, indicating a strategic investment in precious metals alongside Bitcoin [5].

Core Insights - Tether is expanding USDT and Tether Gold support within Opera's MiniPay wallet, enhancing financial inclusion in emerging markets [1][6] - USDT has a market capitalization exceeding $186 billion, making it the most widely used digital dollar globally [2] - MiniPay has over 12.6 million activated wallets and has seen significant user growth, particularly in Africa, Latin America, and Southeast Asia [3][4] User Engagement and Growth - MiniPay recorded a 50% growth in on-chain users in Q4 2025, with 7 million phone-verified USDT wallets and 300,000 unique buyers in December, a 33% increase month-over-month [3][4] - Celo, the blockchain supporting MiniPay, experienced a user growth of 506% over the last year, increasing from 825,000 to 5 million users [4] - In December 2025, MiniPay users initiated over 96 million USDT in transfers and conducted more than 3.5 million peer-to-peer payments [4] Financial Transactions and Local Integration - Users added over $49 million in cash to MiniPay wallets through local partners, facilitating direct connections to Tether's liquidity network [5] - More than $153 million was sent or received through MiniPay in December, indicating a rising demand for stable, dollar-based payments in mobile-first regions [5] Product Features and Market Position - MiniPay supports Tether Gold (XAU0), providing an inflation-resistant savings option as gold prices rose nearly 50% in 2025 [6] - Tether Gold serves as a transparent bridge between traditional value stores and the digital economy [7] - Tether's commitment to transparency and accessibility is aimed at expanding the real-world use of stablecoins [8]

Core Insights - Opera Limited expects fourth quarter 2025 results to exceed previous guidance for both revenue and adjusted EBITDA [1] - The company anticipates fourth-quarter revenue to surpass $170 million, up from prior guidance of $162 – 165 million, leading to a full-year revenue projection of over $608 million, representing a growth of over 26% or approximately $130 million compared to 2024 [2] - Adjusted EBITDA is expected to exceed the high end of the previous guidance range of $37.5 – 40.5 million, with full-year adjusted EBITDA projected to exceed $141 million [2] Company Performance - The Opera browser is tailored for demanding users, with a high-ARPU Western user base increasing by approximately 2 million users sequentially from Q3 to Q4, providing a strong boost for monetization [3] - The company has raised growth expectations each quarter in 2025 and is pleased to exceed expected financial results, entering Q4 at an unprecedented scale [4] - Opera is benefiting from expanding e-commerce opportunities and its ability to serve user queries through search and partner promotions [4] Future Outlook - The company is optimistic about driving growth through both commercial and product opportunities as it enters 2026 [4] - Fourth quarter 2025 financial results will be announced before the market opens on February 26, 2026, with a conference call scheduled for the same day at 8:00 a.m. ET [5]

Summary of Opera Limited's Q3 Conference Call Company Overview - **Company**: Opera Limited - **Industry**: Internet and Technology - **Core Business**: Transitioned from a browser company to a diversified consumer internet platform, including search, advertising, and fintech services - **Monthly Active Users**: Approximately 300 million, representing about 6% of the global internet user base [3][6] Financial Highlights - **Revenue Guidance for 2025**: Expected to be around $600 million with an Adjusted EBITDA of $140 million [4] - **Dividend Policy**: Opera pays a recurring dividend every six months, yielding approximately 5%-6% [4] - **Share Buybacks**: Totaling about $500 million since 2020 [4] - **Revenue Composition**: 37% from query-based revenue and two-thirds from advertising [16] Product Innovation and Development - **Browser Variants**: Multiple versions of the Opera browser tailored for different user segments, including Opera One for general users, GX for gamers, and Opera Neon for a unique browsing experience [5][11] - **AI Integration**: Early adopter of integrating large language models (LLMs) into its products, enhancing user experience through features like Opera AI, which assists users in tasks across websites [7][9] - **Gaming Browser**: The GX browser is specifically designed for gamers, featuring optimizations for performance and user experience [11][12] Market Position and Growth Potential - **User Base Growth**: Significant potential for growth in the gaming segment, with a 10x potential in Western markets [12] - **Emerging Markets**: Launched MiniPay, a non-custodial wallet for stablecoins, which has rapidly grown to over 12 million wallets and 360 million transactions [13] - **Brand Awareness**: 44% awareness in the U.S., 60% in the U.K., and 70% in Germany, indicating room for growth in brand recognition [15] Revenue Streams and Advertising Model - **Advertising Model**: Primarily performance-based, with revenue generated through partnerships and user engagement [31][32] - **Long-standing Partnerships**: Maintains a 20-year partnership with Google for search-related revenue [17] Challenges and Market Dynamics - **Concerns about Fraud**: Addressed concerns regarding fraudulent activities in the advertising space, emphasizing the importance of genuine user traffic [24][25] - **Impact of AI on Browsing**: Discussed potential risks of generative AI affecting traditional search and advertising models, but emphasized the unique value of the Opera browser in enhancing user experience [33][34] Financial Health and Strategy - **Profitability**: Stable profit margins with a guided EBITDA margin of 23% for the year [19] - **Cash Flow Management**: High conversion from EBITDA to cash flow, with no financial debt and a solid cash position [21][22] - **Investment vs. Profitability**: Balancing growth investments with profitability, receiving mixed feedback from stakeholders on the approach [20][21] Conclusion - Opera Limited is positioned as a significant player in the internet and technology sector, leveraging innovation and a diversified product portfolio to drive growth. The company maintains a strong financial profile with a focus on user engagement and market expansion, particularly in gaming and fintech services.

Core Insights - Opera has launched Opera One R3, the latest version of its flagship browser, featuring enhanced tab management and AI capabilities [3][4][14] Product Features - The new Tab Islands feature allows users to automatically group tabs by context, with options for color-coding and naming, improving organization [3][5] - The rebuilt Opera browser AI offers 20% faster responses and can provide context-specific answers based on the current tab or Tab Island [6] - Users can now view up to four tabs simultaneously in various layouts, enhancing multitasking capabilities [9] Integration and Design - The sidebar now includes Google services such as Gmail and Google Calendar, contributing to a modular design that enhances user productivity [10][11] - Opera One R3 introduces three new dynamic themes, including a special theme that reacts to music played through the browser [12][13] User Experience - The update aims to provide a visually and audibly engaging browsing experience, aligning with users' new year resolutions for better organization and productivity [4][14]

Company Overview - Opera is a Norway-based tech firm with an enterprise value of approximately $1.28 billion, primarily owned by Kunlun Tech since 2016 [3] - The company has been operational for three decades and focuses on providing faster, smarter, and safer web browsing experiences [2] Financial Performance - In Q3 2025, Opera reported a revenue of $151.9 million, reflecting a 23% year-over-year growth, exceeding analyst expectations by $3.8 million [7] - The company's non-GAAP EPS was 30 cents per share, which missed forecasts by one cent [7] - Year-to-date, Opera's shares have declined by 20% due to increased operating expenses and decreased operating cash flows [6] Market Position and Analyst Insights - Goldman analyst Eric Sheridan highlights Opera's strong fundamentals and operating momentum, despite pressures from competition and investor preferences for larger companies [8] - Sheridan maintains a positive outlook, indicating that Opera is well-positioned to benefit from long-term trends in digital advertising and geographic product mix shifts, projecting sustained double-digit growth [8] - The stock has a Buy rating with a price target of $24.50, suggesting a potential upside of 69% in the coming year [8] Industry Context - The small-cap sector, including Opera, is expected to outperform in early 2026 due to favorable macroeconomic conditions, including accelerating US economic growth and continued Federal Reserve easing [5] - The Russell 2000 index, a benchmark for small-cap stocks, has gained in the mid-teens this year, indicating a positive trend for small-cap investments [5]