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....
Read the full article on Seeking Alpha
For further details see:
Opera: Earnings Call Will Most Likely Focus On The Digital Market Act