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Is Opera Limited (OPRA) Top Performing European Stock Heading into 2025?

Eli GrantWednesday, Nov 13, 2024 10:45 am ET
4min read
As we approach the close of 2024, investors are looking ahead to identify top-performing stocks for the coming year. One European company that has caught the eye of analysts and investors alike is Opera Limited (OPRA), the Norwegian browser developer and internet consumer brand. With a year-to-date (YTD) increase of ~41.9% and an average upside potential of ~27.4%, OPRA is poised to continue its strong performance heading into 2025. But what are the key drivers behind OPRA's success, and can it maintain its momentum in the coming year?

Opera Limited's strategic focus on monetization improvements and high-value markets has been a significant driver of its sustained growth. By prioritizing high-value users and enhancing its monetization strategies, OPRA has been able to generate consistent revenue growth and maintain its competitive edge in the browser market. Additionally, the company's emphasis on AI technology, such as its integrated AI Aria, further enhances user experience and engagement, contributing to its overall success.

AI integration, such as Aria, is a key differentiator for OPRA. The company's built-in browser AI offers personalized recommendations and streamlines tasks, providing a more intuitive and tailored browsing experience. This feature, available to all users without logging in, has been well-received and contributes to Opera's competitive edge. Moreover, OPRA's strategic focus on AI, along with its emphasis on high-value markets and GX users, is expected to fuel its performance and market share in the near to medium term.

OPRA's financial performance has been robust, with revenue increasing by 21.42% in 2024 compared to the previous year. Earnings per share (EPS) is expected to increase by 21.72% in 2025, reflecting the company's strong growth and profitability. Opera's focus on AI-driven digital content discovery and recommendation platforms, as well as its expansion into gaming browsers and AI-powered browsers, has contributed to its growth. The company's ability to generate higher ARPU and maintain a strong user base, despite the growth of competitors like Google and Microsoft, highlights its effective monetization strategies. Additionally, OPRA's expansion into high-growth markets, such as India and Southeast Asia, further enhances its potential for sustained growth.

Opera Limited's gaming browser, Opera GX, has significant potential to boost its overall growth and user base. As the world's first gaming browser, Opera GX offers unique features such as a built-in CPU and RAM booster, a network booster, and a customizable gaming theme. These features cater to the growing demand for gaming-specific browsers, which can enhance the gaming experience by optimizing system resources and reducing latency. Additionally, Opera GX's integration with popular gaming platforms like Twitch and Discord allows for seamless interaction with the gaming community, further expanding its user base. As the gaming industry continues to grow, Opera GX's innovative features and strategic partnerships position it well to capture a larger share of the market, driving OPRA's overall growth and user base.

In conclusion, Opera Limited (OPRA) is well-positioned to continue its strong performance heading into 2025, driven by its strategic focus on monetization, high-value markets, and AI integration. The company's robust financial performance, innovative gaming browser, and expansion into high-growth markets make it a top-performing European stock to watch in the coming year. As always, investors should conduct thorough research and consider multiple perspectives when evaluating market trends and making investment decisions.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.