Wachiwit Opera Stock Suffered A Bear Market Opera Limited (NASDAQ:OPRA) investors have endured a challenging two months since OPRA stock's buying momentum peaked and stalled in March 2024, close to the $17.5 level. Since my last bullish update on OPRA in March, OPRA fell nearly 30% through its recent May lows, underperforming the S&P 500 (SPX) (SPY). I underscored my conviction why Opera has been able to continue monetizing higher value users as it scales up in the Western markets and among gaming-focused u ...

Investors can buy this steadily growing AI stock at an attractive valuation right now. The proliferation of artificial intelligence (AI) technology has given many technology companies a boost over the past 18 months, and Opera (OPRA -0.67%) is one of them -- share prices of the company, which is known for its mobile and personal computer (PC) browsers, have shot up 146% during this period. However, there has been a sharp pullback in Opera stock more recently. The stock hit a 52-week high in mid- July last y ...

Core Viewpoint - Investors in Opera Limited (OPRA) should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Jun 21, 2024 $2.50 Call option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectations for future price movements, with high levels suggesting potential significant price changes or upcoming events that could lead to a rally or sell-off [2] - The current high implied volatility for Opera shares may signal a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4] Group 2: Analyst Sentiment - Opera holds a Zacks Rank 2 (Buy) in the Internet – Content industry, which is in the top 37% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have raised their earnings estimates for the current quarter, while one has lowered the estimate, resulting in a decrease in the Zacks Consensus Estimate from 18 cents to 17 cents per share [3]

Opera Limited Sponsored ADR (OPRA) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this company have returned -12.2%, compared to the Zacks S&P 500 composite's -0.3% change. During this period, the Zacks Internet - Content industry, which Opera Limited falls in, has gained 2.2%. The key question now is: What could be the stock's future direction?While med ...

OSLO, Norway, May 8, 2024 /PRNewswire/ -- Opera Limited (NASDAQ: OPRA), one of the world's major browser developers and a leading internet consumer brand, announced today the appearance of Frode Jacobsen, Chief Financial Officer, at upcoming investor conferences. Event Details: B. Riley Securities 24th Annual Institutional Investor Conference on May 22nd, 2024. The company will present at 12:15 PM PT. Please note there will be no webcast. TD Cowen's 52 Annual Technology, Media and Telecom Conference on May ...

OSLO, Norway, May 1, 2024 /PRNewswire/ -- Opera Limited (NASDAQ: OPRA), one of the world's major browser developers and a leading internet consumer brand, is proud to announce that the company's completely reimagined desktop browser, Opera One, has won the iF DESIGN AWARD 2024, one of the world's most prestigious design awards. Featuring a reimagined architecture, design, and native AI, Opera One is a browser for the next phase in the evolution of the internet, redefining how users engage with the web. This ...

OSLO, Norway, April 30, 2024 /PRNewswire/ -- Opera Limited (NASDAQ: OPRA) ("Opera"), one of the world's major browser developers and a leading internet consumer brand, today announced that it has filed an amendment to its annual report on Form 20-F for the fiscal year ended December 31, 2023 with the U.S. Securities and Exchange Commission (the "SEC"). The amendment corrects a technical error in a table within note 11 to the financial statements, which originated in the XBRL conversion process. Specifically ...

The company's bottom line disappointed as the browser specialist invested heavily in AI.Shares of internet browser company Opera Ltd. (OPRA -6.97%) were falling in Thursday trading, down 8.6% as of 2 p.m. ET.Opera reported earnings last night, and while revenue slightly beat expectations, earnings per share (EPS) missed. The company is spending heavily on a new artificial intelligence (AI) cluster, much like other big tech companies are. However, given the big spend on AI, some may have anticipated better s ...

Financial Data and Key Metrics - Q1 2024 revenue was $102 million, exceeding guidance, with a 17% YoY growth and 23% constant currency growth [33][40] - Adjusted EBITDA reached $25 million, representing a 24% margin, also exceeding guidance [33][40] - Advertising revenue grew 21% YoY to $59 million, accounting for 58% of total revenue [29] - Search revenue increased 14% YoY to $43 million, driven by high-value users [29] - Annualized ARPU was $1.34 in Q4, up 24% YoY, driven by high ARPU markets and Opera GX growth [58] Business Line Data and Key Metrics - Opera GX reached 29.5 million users, up 6.1% QoQ, with ARPU of $3.49 in Q1, up 10% YoY [61] - Opera GX remains the highest monetizing browser across both developed and emerging markets [61] - Opera One, the AI-focused browser, continues to innovate with features like local AI models and GX Mods, which have been installed over 150 million times [37][62][39] - Advertising revenue within the browser experienced the fastest YoY growth since Q2 2021 [59] Market Data and Key Metrics - In the EU, new iOS users increased by 63% from February to March following the implementation of the Digital Markets Act (DMA) [60] - The company sees a significant opportunity in the US market, where Apple holds 70% of the performance smartphone market [73] - Western markets (Europe and North America) represent 17% of the total user base but account for the majority of marketing spend and revenue growth [51] Company Strategy and Industry Competition - The company focuses on high-value users and quality over quantity, with a strategy to grow in high ARPU markets and Opera GX [58] - The DMA in the EU has leveled the playing field, allowing the company to increase iOS investments and explore similar opportunities in other markets [60][73] - The company continues to innovate with AI features, including local AI models and Aria, its AI cloud service powered by green energy in Iceland [39][64] - Opera GX is expanding its monetization beyond search, with a focus on advertising revenue drivers [53] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the DMA's impact and sees potential for similar frameworks in other markets, including the US [48][73] - The company expects marketing spend to increase by $1-2 million per quarter, with a focus on Western markets and high-value populations [18] - Management is excited about the growth potential in iOS and the broader AI-driven browser market [10][39][64] Other Important Information - The company paid a semi-annual dividend of $0.40 per ADS, totaling $35 million, with $25 million offset against the Star X receivable [42] - The fair value of the company's 9.4% stake in OPay was adjusted to $253 million, resulting in a Q4 valuation gain of $90 million [43] - The company issued updated revenue guidance for 2024, raising the midpoint to 16% growth, with Q2 revenue expected to be $107-109 million [44][45] Q&A Session Summary Question: Opportunity in the EU under DMA - The company sees a significant opportunity in the EU, with a 63% increase in new iOS users post-DMA implementation [60][72] - Management expects to increase iOS investments and sees potential for similar frameworks in other markets, including the US [73][85] Question: Google Renewal and Buyback - The early renewal of the Google partnership reflects the value of the relationship and joint potential [8] - The company has fully consumed its $50 million buyback plan and will monitor opportunities for future buybacks [78] Question: Opera GX Monetization and Growth - Opera GX's ARPU growth is strong, with a 10% YoY increase in Q1, despite geographic expansion into non-Western markets [61][88] - The company is expanding GX's monetization beyond search, focusing on advertising revenue drivers [53] Question: Marketing Spend and Ad Auctions - Q1 marketing spend was 2% below Q4 levels, with expectations of incremental spend throughout the year [18] - The company focuses on influencer marketing and high user intent events, which are less affected by competitive ad auctions [107][108] Question: DMA Implementation and User Retention - The company has seen a significant increase in default browser settings among new iOS users in the EU, which positively impacts user engagement and retention [111] Question: AI Features and Local Models - The company is proud of its AI innovations, including local AI models like Llama 3, which enhance user experience without additional costs [23][25] - AI features are expected to attract high-value users and improve monetization opportunities [118]

Product Development and Innovation - The company launched an initial set of generative AI tools in its PC flagship browser in March 2023, expanding to other mobile and PC browsers throughout the year[40]. - A new non-custodial stablecoin wallet, MiniPay, was launched in September 2023, built on the Celo blockchain[40]. - The company redesigned its flagship PC browser into Opera One in June 2023, integrating AI at its core with the Aria browser AI[44]. - The company has launched several new products, including the GX Games portal, Opera VPN Pro, and MiniPay stablecoin wallet, as well as generative AI tools and services[66]. - Opera's browser AI, Aria, was launched in 2023, providing users with access to generative AI services[195]. - The company has transformed its products into an AI-powered content discovery platform, leveraging billions of data points for personalized content recommendations[221]. Financial Performance and Revenue Sources - Revenue generated from customers in Russia accounted for 6.1% ($20.3 million) of total revenue in 2022 and 5.2% ($20.7 million) in 2023[56]. - Approximately 9.9% of total revenue in 2022 and 5.7% in 2023 was derived from monetizing the user base in Russia[57]. - Revenue generated from users' search activity accounted for 48.6%, 42.3%, and 40.9% of total revenue in 2021, 2022, and 2023, respectively[106]. - Google contributed approximately 42.4% of the company's revenues in 2023, down from 44.9% in 2022 and 51.3% in 2021[104]. - Revenue from customers and monetization partners in Ireland accounted for 41.1% in 2023, compared to 44.1% in 2022 and 50.5% in 2021[105]. - Revenue from customers and monetization partners in Singapore accounted for 15.4% in 2023, compared to 15.6% in 2022 and 9.7% in 2021[105]. Competition and Market Risks - The company faces intense competition from major players like Google, Apple, and Microsoft, which may impact user engagement and advertising revenue[37]. - The ongoing war in Ukraine has resulted in significant volatility in financial markets and increased energy and commodity prices, potentially impacting advertising spending[55]. - The company plans to continue expanding operations globally, entering new markets with limited experience, which may increase business and regulatory risks[53]. - The company may face challenges in maintaining compliance with various regulatory requirements due to its dual status as a public company and a subsidiary[129]. Legal and Regulatory Risks - The company is subject to risks related to litigation, including intellectual property claims and regulatory disputes, which could be costly[34]. - The company is subject to various legal and regulatory risks, including compliance with local laws and potential intellectual property claims[61]. - The company faces risks related to intellectual property infringement claims, which could be costly and time-consuming to defend[92]. - The company is subject to complex and evolving privacy and data protection laws across multiple jurisdictions, which could adversely affect its business[95]. - The company may experience litigation threats that could divert management resources and harm business operations[129]. Operational and Cybersecurity Risks - The company is exposed to cyber-attacks and data breaches, which could adversely impact its ability to protect user information[34]. - The company has not suffered material costs from cybersecurity incidents to date, but future breaches could significantly impact user trust and financial performance[98]. - The company faces risks related to staffing and managing global operations, including cultural differences and compliance costs[48]. - The company relies on third-party operators for auxiliary services, including data storage and analysis, which could adversely affect revenues if collaborations cease[111]. Financial Condition and Capital Needs - The company may need additional capital to expand its businesses but may not be able to obtain it on favorable terms[34]. - The company may require additional capital for future growth and acquisitions, facing uncertainties in obtaining favorable financing terms[58]. - The company has limited business insurance coverage, which could lead to substantial costs in the event of uninsured damage or disruption[75]. - The company’s effective tax rate was 37.0% in 2022, compared to 0.1% in 2021 and 4.2% in 2023, indicating significant fluctuations in tax liabilities[79]. User Engagement and Metrics - The company relies on user web searches within its browsers for a substantial portion of its revenues, making user engagement critical[34]. - Opera reached over 313 million average MAUs in Q4 2023, with its browser products accounting for approximately 281 million average MAUs[175][176]. - Opera GX, the gaming-focused browser, achieved over 24 million MAUs, while GX Mobile reached over 4 million MAUs in Q4 2023[178]. - Opera News had an average of 230 million MAUs in Q4 2023, including 31 million from standalone news apps[180][203]. - The mobile browser user base reached 202 million average MAUs in Q4 2023, with 154 million being smartphone users[194]. - Opera Mini averaged 134 million users worldwide in Q4 2023, with over 86 million MAUs in its Android version[193]. Corporate Governance and Structure - Kunlun, a Chinese public company, owns 72.4% of the issued and outstanding ordinary shares, making the company a consolidated subsidiary of Kunlun[141]. - The company is classified as a "controlled company" under Nasdaq rules, which may exempt it from certain corporate governance requirements[144]. - The company does not expect to be classified as a Passive Foreign Investment Company (PFIC) for the taxable year ended December 31, 2023, but acknowledges the uncertainty surrounding this classification[149]. - The company’s board of directors has the authority to issue preferred shares, which could limit shareholders' opportunities to sell their shares at a premium[152]. Dividend and Shareholder Considerations - The company has adopted a recurring semi-annual cash dividend program, with each dividend being $0.40 per ADS, paid to shareholders of record as of June 30, 2023, and January 3, 2024[137]. - Future dividend payments will depend on the company's operations, earnings, and other financial conditions[138]. - Holders of ADSs may experience dilution of their holdings due to the inability to participate in rights offerings unless certain conditions are met[170]. - The company may not be able to distribute dividends or other distributions if it is illegal or impractical to do so, potentially affecting the value of ADSs[169].