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Opera Plunges 15% YTD: Is the Stock Worth Buying on the Dip?

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Opera Limited’s (OPRA - Free Report) shares have lost 15.1% year to date (YTD), underperforming the broader Zacks Computer and Technology sector’s 11.7% decline and the Zacks Internet - Content industry’s drop of 8.4%.

OPRA has underperformed its industry peers, RELX (RELX - Free Report) , Yelp (YELP - Free Report) and Perion Network (PERI - Free Report) .

Over the same time frame, RELX shares have risen 11.6%, while Yelp and Perion Network shares have lost 1.4% and 2.7%, respectively.

This underperformance raises the question of whether investors should cut their losses and exit or view the dip as a compelling entry point. Despite near-term challenges, the company’s long-term growth trajectory remains strong, suggesting opportunities for investors.

Why are Investors Concerned About OPRA?

The rapid expansion of Opera’s advertising revenues, while driving strong top-line growth, has introduced margin compression, creating profitability challenges. As the company scales its ad business, associated costs have led to headwinds, impacting the near-term momentum.

Opera continues to struggle to gain traction in the iOS ecosystem, wherein its market share remains relatively low. Limited penetration in this segment restricts its ability to fully capitalize on the broader mobile opportunity, posing a long-term growth challenge.

Rising operational costs, particularly in marketing and revenue-related costs, have further pressured margins. In the fourth quarter of 2024, marketing costs jumped 35.8% year over year to $41 million.

However, Opera's strong e-commerce momentum has exceeded expectations, driven by a robust product lineup, user growth in high-ARPU regions and its agility as an independent player in a rapidly innovating ecosystem, reinforcing confidence in the company’s growth prospects.

Expanding Product Line Aids Opera’s Prospects

In 2024, OPRA launched Opera R2 and Opera One, integrating advanced AI-driven features to elevate user experience and engagement. These innovations position the company to capitalize on the growing demand for AI-enhanced browsing, strengthening its competitive edge.

Opera GX, Opera’s gaming-focused browser, maintained strong growth momentum in the fourth quarter of 2024, with monthly active users (MAUs) rising 22% year over year to 33.9 million. This sustained expansion underscores OPRA’s ability to capture and engage the gaming community, reinforcing its niche market leadership.

The launch of Opera Air in February 2025 introduced integrated mindfulness and productivity tools, enhancing the browsing experience. This innovation highlights Opera’s focus on differentiation and user engagement in an increasingly competitive market.

OPRA has integrated AI image-understanding capabilities into its iOS and Android browsers, reinforcing its focus on innovation. The company is advancing Agentic browsing to enhance web-based efficiency and recently became the first major browser to introduce AI-driven Agentic browsing at MWC, strengthening its competitive edge.

OPRA’s Earnings & Sales Estimates Trend Upward

For the second quarter of 2025, the Zacks Consensus Estimate for earnings is pegged at 29 cents per share, unchanged over the past 30 days. The estimate indicates year-over-year growth of 31.82%.

The Zacks Consensus Estimate for second-quarter 2025 revenues is pegged at $134.45 million, suggesting a 22.53% increase from the prior-year quarter’s actual.

The Zacks Consensus Estimate for 2025 revenues is pegged at $568.07 million, indicating year-over-year growth of 18.19%.

The consensus mark for 2025 earnings is pegged at $1.25 per share, unchanged over the past 30 days, implying a 38.89% year-over-year increase.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Conclusion: Buy Opera Stock Now

OPRA’s continued innovation, strong user growth and expanding AI-driven offerings position it for sustained long-term success. Its strategic differentiation and high-growth potential make the stock an attractive buying opportunity for investors seeking exposure to the evolving digital and AI-driven market.

Opera currently sports a Zacks Rank #1 (Strong Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank stocks here.


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