Opera Limited (OPRA): A Bull Case Theory

We came across a bullish thesis on Opera Limited on Long-Term Pick’s Substack by Dan. In this article, we will summarize the bulls’ thesis on OPRA. Opera Limited's share was trading at $20.28 as of September 12th. OPRA’s trailing P/E was 21.86 according to Yahoo Finance.

Opera Limited (OPRA) is a global software and internet company focused on delivering browsers and AI-driven products to millions of users worldwide. Founded in 1995 and listed on Nasdaq, Opera has built a diversified portfolio including Opera One, Opera GX, Opera Mini, and Opera Neon, catering to desktop, mobile, gaming, and innovation-focused users. By Q2 2025, Opera reached 289 million monthly active users, with 206 million on mobile and 83 million on desktop, including 58 million in high-value Western markets. The company’s narrow economic moat is supported by decades of innovation, brand recognition, and long-term partnerships, notably with Google for search monetization, and its history of first-to-market features such as tabs, built-in ad blockers, VPNs, and integrated AI tools like ChatGPT and local LLMs.

Financially, Opera has demonstrated strong growth with Q2 2025 advertising revenue up 44% year-over-year and search revenue up 11%, driving annualized ARPU to $1.97. MiniPay, the company’s non-custodial stablecoin wallet, saw a 255% surge in activations, while VPN Pro upgrades enhance monetization of security-conscious users. Opera maintains disciplined capital allocation, returning $477 million to shareholders since 2020 via buybacks and dividends, while holding $392 million in cash and investments, including a $258 million stake in OPay. The company also delivered 17 consecutive quarters above the Rule of 40, reflecting scalable, profitable growth.

Despite challenges including declining gross margins, rising operating expenses, and intense competition from Chrome, Safari, Edge, and Firefox, Opera’s valuation remains attractive. Trading below five-year averages with a PEG ratio of 0.93, the stock currently offers a 42% upside to the fair value of $33.32. Supported by strong solvency, diversified revenue streams, high ARPU growth, and disciplined shareholder returns, Opera presents a compelling investment opportunity for exposure to a profitable, innovative mid-cap software company with upside potential.

Previously we covered a bullish thesis on Opera Limited (OPRA) by Welfare Capital in March 2025, highlighting its core browser strength, GX user growth, and disciplined shareholder returns. The stock has appreciated approximately 10% since then, as Opera expanded monetization and Western market presence. The thesis still stands, while Dan shares a similar view but emphasizes AI integration, MiniPay growth, and Rule of 40 consistency.

Opera Limited is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held OPRA at the end of the second quarter which was 14 in the previous quarter. While we acknowledge the potential of OPRA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.