Opera Limited’s OPRA shares have surged 61.9% over the trailing 12 months, outpacing the Zacks Computer & Technology sector’s growth of 29.4% and the Zacks Internet - Content industry’s return of 12.3%.

OPRA has also outperformed its industry peers, Weibo WB, DHI Group DHX and Angi ANGI.

Over the same time frame, shares of Weibo have risen 13.8%, while DHI Group and Angi shares have lost 3.1% and 15.5%, respectively.

The momentum in OPRA shares has been driven by the robust monetization of its browsers, continued growth of the Opera Ads platform, and successful product innovations like the Opera One browser.

Opera's expansion into new markets, including AI integration, along with a robust product portfolio, has contributed to investor confidence and stock appreciation.

Diverse Product Line Powers OPRA’s Growth

The Opera Ads platform has experienced significant growth, contributing to the company's revenues. This platform enables advertisers to reach a broad audience through Opera's ecosystem, leveraging user engagement to deliver targeted advertising solutions.

OPRA's flagship products include web browsers designed for various operating systems, featuring AI integration and a modular design for better user experience. The Opera One browser has been launched, offering a redesigned interface and enhanced functionality.

Opera launched Opera One R2, an upgraded version of its flagship browser, with improved AI features, advanced tab management and enhanced multi-media capabilities.

The Opera GX gaming browser, the company's fastest-growing product, added more than 1.8 million net users in the third quarter of 2024. Its monthly active users increased 22% year over year, reaching 31.9 million across PC and mobile platforms.

Opera has been integrating AI-driven solutions into its products, improving functionality and user engagement. This strategy places the company at the forefront of technology, addressing the evolving needs of its users.

OPRA’s Earnings & Sales Estimates Trend Upward

For the first quarter of fiscal 2025, the Zacks Consensus Estimate for earnings is pegged at 21 cents per share, unchanged over the past 30 days. This indicates year-over-year growth of 23.53%.

The Zacks Consensus Estimate for first-quarter fiscal 2025 revenues is pegged at $123.2 million, suggesting a 20.94% increase from the prior-year quarter’s actual.

The Zacks Consensus Estimate for 2025 revenues is pegged at $551.15 million, indicating year-over-year growth of 16.22%.

The consensus mark for 2025 earnings is pegged at 95 cents per share, unchanged over the past 30 days, implying a 20.25% year-over-year increase.

OPRA has a mixed earnings surprise history. The company’s earnings missed the Zacks Consensus Estimate in one of the trailing four quarters and beat in the other three, resulting in an average surprise of 174.09%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Opera Faces Strong Competition in Browser Market

OPRA operates mainly in the web browser market, competing with major players like Google Chrome, Safari, Microsoft Edge and Mozilla Firefox. The company faces the challenges of maintaining user engagement and retention in this highly competitive space.

Beyond its browser offerings, Opera has expanded into gaming browsers, news aggregation and AI integration. In these areas, it competes with companies like C3.ai, which specializes in AI algorithms for enterprise applications.

Despite fierce competition, Opera sets itself apart with innovative features such as a built-in VPN, ad blocker and cryptocurrency wallet, aiming to establish a unique position in the crowded browser market.

However, stiff competition is expected to drag down the company’s shares in 2025.

OPRA’s Zacks Rank

Opera currently carries a Zacks Rank #3 (Hold), which implies that investors should wait for a favorable entry point to accumulate the stock. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Angi Inc. (ANGI) : Free Stock Analysis Report

Weibo Corporation (WB) : Free Stock Analysis Report

DHI Group, Inc. (DHX) : Free Stock Analysis Report

Opera Limited Sponsored ADR (OPRA) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research