Opera: An AI-Accelerated Browser Play With Much More Room To Run
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The J Thesis1.23K FollowersFollow5ShareSavePlay(14min)CommentsSummaryOpera is rated Buy with a $17.6 price target, implying 27% upside and market outperformance.OPRA delivered 30% revenue growth and above-market margins, but recent margin erosion warrants close monitoring.Q3 2025 saw 23% revenue growth and strong advertising momentum, though the bottom line missed estimates and margins contracted.OPRA trades at a significant valuation discount to peers despite robust user growth and resilient core business performance. e-crow/iStock via Getty Images Opera (OPRA) is an AI-powered technology company, mainly known for its web browser solution and associated services. The stock is down 27% year-to-date, although management delivers steady and stable performance. I think the sentiment appearsThis article was written byThe J Thesis1.23K FollowersFollowDear Reader,I am a Senior Derivatives Expert with over 10 years of experience in the field of Asset Management, specializing in equity analysis and research, macroeconomics, and risk-managed portfolio construction. My professional background covers both institutional and private client asset management, where I have advised on and implemented multi-asset strategies, but highly focusing on equities and derivatives.As you might be as well, I am a stock market enthusiast. My core passion lies in understanding how macro trends influence both asset prices and investor behavior. I closely follow EU and US central bank policies, sector rotation, and sentiment dynamics, and construct actionable investment strategies.BA in Financial Economics, MA in Financial Markets. In the past decade, I have navigated through various market conditions, and this was my PhD.One of the essential goals of writing on Seeking Alpha is to share insights with colleagues, fellow investors, exchange ideas, and become slightly better than yesterday. I contribute to the idea that investing should be accessible, inspiring, and empowering. It might sound like a cliche, I know, but in the end it's highly valuable - so let's help each other build confidence in long-term investing. The analysis and opinions shared in my articles and comments are for informational purposes only and should not be considered financial advice. Please do your own research before making any investment decisions.Thank you and have a lovely day!Best regardsAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in OPRA over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Quick InsightsWhat justifies the Buy rating and $17.6 price target for OPRA?OPRA's rapid revenue growth, above-market margins, and a 2x earnings multiple discount to peers support a Buy rating and a $17.6 PT, implying 27% upside.How significant is the recent margin contraction for OPRA's investment case?While OPRA's margins remain above market, recent declines in EBITDA and net income margins should be monitored; persistent erosion could pressure valuation.What are the key drivers of OPRA's top-line growth and user metrics?Advertising revenue grew 27% YoY, driving 63% of total revenue, while monthly active users reached 284 million and ARPU rose 28% YoY, underscoring strong engagement.Recommended For You