OPRA - Opera: Earnings Call Will Most Likely Focus On The Digital Market Act
2024-04-22 05:16:08 ET
Summary
- Opera's stock surged over 25% following its Q4 earnings report but has since declined due to market conditions.
- The company's advertising business saw a 20% YoY increase in sales, driven by monetizing its Opera browsers which outclassed search giant Google.
- OPRA should benefit from the European Union's Digital Markets Act or DMA, which aims to level the playing field for browser companies.
- On the other hand, there are risks related to equity offering and this remains a rate-sensitive stock.
- Still, with the creation of fairer competition with big tech, and more users for the Opera browser in the high-value European market, there are not only opportunities for revenue expansion but also margin gains.
Norway-based Opera's ( OPRA ) stock surged over 25% following the release of its fourth-quarter 2023 (Q4) earnings report on February 29. Since then, shares have moved lower, mostly as part of the broader market impact following a hawkish Federal Reserve. It trades at a high price-to-sales multiple, but revenues growing at double digits indicate progress on monetization and uptake of the Opera GX browser used for online gaming....
Opera: Earnings Call Will Most Likely Focus On The Digital Market Act