OPRA - Opera: AI Monetization Shows Promise Compelling Growth And Dividend Prospects

2024-06-27 12:00:00 ET

Summary

• OPRA continues to demonstrate excellent monetization across its gaming platform, advertising, and search engine segments, along with growing market shares.
• This is on top of the improved edge multi-modal AI capabilities, allowing users to keep data locally while browsing/ working "privately and securely."
• OPRA's strategy of focusing on higher ARPU regions since FQ2'21 have been extremely successful as well, as observed in the expansion in its adj EBITDA margins.
• Combined with the recently implemented Digital Markets Act in the EU, we believe that the management is likely to record another raise quarter in FQ2'24.
• With OPRA appearing to be well supported at $13s over the past two months, investors may consider dollar cost averaging at those levels for an improved margin of safety.

We previously covered Opera Limited ( OPRA ) in March 2024, discussing why we had maintained our Buy rating, as the management increasingly monetized its gaming platform, advertising, and search engine capabilities....

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