Opera’s AI Monetization Holds Substantial Promise and High Growth Prospects

Photo of author
Written By Jackson Hartwell

Opera Limited (NASDAQ: OPRA) has continued to strengthen its position in the digital landscape, leveraging strong monetization strategies across its gaming, advertising, and search engine platforms.

Despite recent market fluctuations, OPRA maintains a compelling investment case driven by its growth prospects and shareholder-friendly policies, including dividends.

AI Monetization and Strategic Initiatives

Credits: DepositPhotos

Over the past few months, Opera has intensified efforts to monetize its browser and digital services through enhanced AI capabilities.

The company’s browser now supports 150 Large Language Models, including partnerships with industry giants like Meta, Google, and Mistral AI. Notably, Opera’s strategy emphasizes local data storage to enhance user privacy and security, aligning with consumer preferences amid growing concerns over data protection.

These advancements are pivotal as Opera expands its multi-modal capabilities, integrating text, voice, and image recognition features. Strategic alliances with Google have further bolstered advertising and search revenues, with Q1 2024 reporting a 24% year-over-year increase in global ARPU to $1.34 and advertising revenues climbing 20.8% to $58.64 million.

Financial Performance and Market Position

Opera’s disciplined focus on higher Average Revenue Per User (ARPU) regions since FQ2’21 has yielded significant results, evidenced by an expansion in adjusted EBITDA margins to 24.5%, marking a notable improvement from FY2021 levels of 11.1%.

Despite varied performance in global browser market share, Opera achieved a 2.51% share in Q1 2024, with recent data indicating further gains to 2.54% as of May 2024.

Key revenue drivers include extended search distribution agreements with Google through 2025, underscoring Opera’s ability to sustain revenue growth momentum. The company’s FY2024 revenue guidance stands at $459.5 million, reflecting a robust 15.7% year-over-year increase, supported by expanded market penetration in high-ARPU regions and enhanced AI-driven user experiences.

Strategic Investments and Market Dynamics

Opera’s strategic investments, such as the $19 million AI data center in Iceland launched in FQ1 2024, are expected to further accelerate growth in Europe and Asia. These regions collectively accounted for 40% of Opera’s FY2023 revenues, highlighting significant growth potential amidst favorable regulatory developments like the Digital Markets Act in the EU.

The implementation of the Digital Markets Act has facilitated Opera’s market share expansion in the EU and UK, with notable gains observed in mobile user adoption rates. Recent metrics indicate a 2.93% market share in the EU and 1.31% in the UK as of May 2024, reinforcing positive growth expectations for subsequent quarters.

Investment Outlook

Credits: DepositPhotos

Despite recent volatility, Opera’s stock remains resilient around the $13 range, reflecting investor confidence in its growth trajectory and dividend yield. With a forward yield of 5.81% compared to sector norms, Opera continues to offer attractive returns through dividends and capital appreciation potential.

The current fair value estimate has been adjusted to $12 based on strong earnings growth and a forward P/E ratio aligned with industry benchmarks. Analysts anticipate Opera’s stock to reach a long-term price target of $23.10, presenting a substantial upside potential of 63%.

This outlook is supported by Opera’s strategic initiatives in AI monetization, expanding market share, and a favorable regulatory environment, positioning the company for sustained growth in digital markets.



You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of SmallCapStocks.com (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.

The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at www.sec.gov; the Financial Industry Regulatory Authority (the "FINRA") at www.FINRA.org, and relevant State Securities Administrator website and the OTC Markets website at www.otcmarkets.com. The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at www.sec.gov/consumer/cyberfr.htm, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.

The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.

By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: www.SmallCapStocks.com/Disclaimer and www.SmallCapStocks.com/Privacy-Policy

By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.