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OPRA’s robust stock price performance has been driven by its impressive second-quarter 2024 results.
Revenues reached $110 million, up 17% year over year. The upside can be attributed to continued momentum in user adoption and broader monetization efforts, particularly in advertising and search revenues.
Advertising revenue grew by 20% year-over-year to reach $65 million, while Search revenues saw a 15% increase and rose to $45 million.
Opera saw a 25% year-over-year increase in average revenue per user (ARPU), reaching an annualized $1.46 across its products and geographies.
So, does the expanding user base driven by an expanding portfolio makes OPRA stock a buy?
Let’s dig deep to find out its growth potential.
Strong Portfolio & Partner Base Aids OPRA’s Prospects
In second-quarter 2024, Opera launched several new products and updates, such as Opera One for iOS and the Opera GX gaming browser, which helped expand its user base.
Opera GX, in particular, saw remarkable success, adding 500,000 new users in the second quarter. This brought its total to 30 million monthly active users (MAUs), up 27% year over year.
Opera’s Aria AI assistant upgrades have significantly increased user engagement and monetization, supporting its goal of enhanced AI-driven features.
OPRA’s prospects are also driven by its rich partner base that includes Alphabet’s (GOOGL - Free Report) cloud business Google Cloud, Microsoft (MSFT - Free Report) and NVIDIA (NVDA - Free Report) .
In May, Opera announced a collaboration with Alphabet’s Google Cloud to integrate Gemini models into its Aria browser AI, enhancing user experiences with advanced image generation and text-to-audio capabilities.
Opera also launched an Arm-optimized version of its browser, offering over twice the speed on Arm-based Windows systems and enhanced AI capabilities with support from Microsoft’s App Assure and Qualcomm Technologies.
Opera’s new AI cluster in Keflavik, Iceland, uses green energy and NVIDIA DGX SuperPOD with H100 Tensor Core GPUs. This setup promises four times faster training and 30 times faster inference, boosting AI capabilities for its browsers and services.
OPRA Q3 Guidance Positive
For third-quarter 2024, OPRA expects revenues in the $119-$121 million range, suggesting an increase of 17% year over year at the midpoint.
The Zacks Consensus Estimate for third-quarter 2024 revenues is currently pegged at $120.75 million, suggesting 17.64% growth year over year.
The consensus mark for earnings is currently pegged at 23 cents, increasing 15% in the past 30 days and calling for year-over-year growth of 27.78%.
Zacks Rank & Valuation
OPRA’s shares are currently trading at a significant discount to the industry average, making the stock more attractive on the valuation front. With a Valuation Score of A, the stock appears to be undervalued at present.
The forward 12-month Price/Sales ratio for OPRA stands at 3.08X, significantly below the industry average of 6.17X.
OPRA has a strong product portfolio and partner base, which are likely to provide traction to the demand for its products. The stock’s attractive valuation also makes it worth investing in right now.
Image: Bigstock
Opera Surges 19% in a Month: Should You Buy the Stock?
Opera Limited (OPRA - Free Report) shares have increased 19% in the past month against the Zacks Computer & Technology sector’s drop of 0.3% and the Zacks Internet - Content sector’s rise of 1.9%.
OPRA’s robust stock price performance has been driven by its impressive second-quarter 2024 results.
Revenues reached $110 million, up 17% year over year. The upside can be attributed to continued momentum in user adoption and broader monetization efforts, particularly in advertising and search revenues.
Advertising revenue grew by 20% year-over-year to reach $65 million, while Search revenues saw a 15% increase and rose to $45 million.
Opera Limited Sponsored ADR Price and Consensus
Opera Limited Sponsored ADR price-consensus-chart | Opera Limited Sponsored ADR Quote
Opera saw a 25% year-over-year increase in average revenue per user (ARPU), reaching an annualized $1.46 across its products and geographies.
So, does the expanding user base driven by an expanding portfolio makes OPRA stock a buy?
Let’s dig deep to find out its growth potential.
Strong Portfolio & Partner Base Aids OPRA’s Prospects
In second-quarter 2024, Opera launched several new products and updates, such as Opera One for iOS and the Opera GX gaming browser, which helped expand its user base.
Opera GX, in particular, saw remarkable success, adding 500,000 new users in the second quarter. This brought its total to 30 million monthly active users (MAUs), up 27% year over year.
Opera’s Aria AI assistant upgrades have significantly increased user engagement and monetization, supporting its goal of enhanced AI-driven features.
OPRA’s prospects are also driven by its rich partner base that includes Alphabet’s (GOOGL - Free Report) cloud business Google Cloud, Microsoft (MSFT - Free Report) and NVIDIA (NVDA - Free Report) .
In May, Opera announced a collaboration with Alphabet’s Google Cloud to integrate Gemini models into its Aria browser AI, enhancing user experiences with advanced image generation and text-to-audio capabilities.
Opera also launched an Arm-optimized version of its browser, offering over twice the speed on Arm-based Windows systems and enhanced AI capabilities with support from Microsoft’s App Assure and Qualcomm Technologies.
Opera’s new AI cluster in Keflavik, Iceland, uses green energy and NVIDIA DGX SuperPOD with H100 Tensor Core GPUs. This setup promises four times faster training and 30 times faster inference, boosting AI capabilities for its browsers and services.
OPRA Q3 Guidance Positive
For third-quarter 2024, OPRA expects revenues in the $119-$121 million range, suggesting an increase of 17% year over year at the midpoint.
The Zacks Consensus Estimate for third-quarter 2024 revenues is currently pegged at $120.75 million, suggesting 17.64% growth year over year.
The consensus mark for earnings is currently pegged at 23 cents, increasing 15% in the past 30 days and calling for year-over-year growth of 27.78%.
Zacks Rank & Valuation
OPRA’s shares are currently trading at a significant discount to the industry average, making the stock more attractive on the valuation front. With a Valuation Score of A, the stock appears to be undervalued at present.
The forward 12-month Price/Sales ratio for OPRA stands at 3.08X, significantly below the industry average of 6.17X.
OPRA has a strong product portfolio and partner base, which are likely to provide traction to the demand for its products. The stock’s attractive valuation also makes it worth investing in right now.
At present, OPRA has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.