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Opera Soars 9.13% on Strong Q1 Earnings, AI Integration

Mover TrackerWednesday, May 14, 2025 6:58 pm ET

1min read

Opera browser (OPRA) rose 0.11% today, marking its third consecutive day of gains, with a 9.13% increase over the past three days. The share price reached its highest level since February 2025, with an intraday gain of 1.46%.

The strategy of buying Opera (OPRA) shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a maximum drawdown and relatively stable annualized returns:

Returns: The annualized return for this strategy was approximately 7.5% over the past 5 years. While this is not a high return, it is stable and reflects consistent growth.

Volatility: The maximum drawdown during this period was -11.4% in May 2024, which occurred after Opera's stock reached a high. This decline was relatively shallow compared to the overall market volatility.

Comparison with Market Index: The strategy's returns slightly underperformed the NASDAQ Composite Index's annualized returns over the same period, which was around 9.5%. However, the NASDAQ Index experienced more significant volatility, with a maximum drawdown of -32.5% during this time.

Conclusion: Holding Opera shares for 1 week after they reached a high is a conservative strategy that provides stability, as evidenced by the moderate drawdown and consistent returns. It is suitable for investors seeking regular income with lower risk, although the overall performance may not be highly disruptive.

This backtest demonstrates that Opera's stock can provide stable returns even after a recent high, making it a reasonable investment for those looking for consistent growth over a shorter holding period.

Opera's recent stock price surge can be attributed to several key factors. The company's Q1 2025 earnings report revealed a 40% year-over-year revenue growth, reaching $142.7 million, which surpassed the guidance range. Additionally, the adjusted EBITDA margin of 23% exceeded expectations, further bolstering investor confidence. The company also raised its full-year guidance for both revenue and adjusted EBITDA, indicating a strong outlook for the remainder of the year.

In addition to its financial performance, Opera has been actively innovating its product offerings. The integration of AI into Opera Mini, which provides affordable access to AI for its over 100 million users, has been well-received by the market. This strategic move not only enhances the user experience but also positions Opera as a leader in the AI-driven browser market, further driving investor interest and contributing to the positive stock price movement.

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