While the big tech giants are rushing from all-time high to all-time high, an Internet pioneer from the very beginning is falling by the wayside almost unnoticed – at least as far as the share price is concerned. Yet Opera Limited (NASDAQ: OPRA) is delivering operating figures that should make every growth investor prick up their ears. We have taken a close look at the “new” Opera and clarified whether the current share price setback is an opportunity of the century for value investors or whether the risks of the ownership structure outweigh the benefits.
From the editors
The name Opera evokes nostalgic feelings for many Internet users of the 1990s. But anyone who dismisses the company today as a mere browser manufacturer is ignoring one of the most exciting transformation stories in the tech sector. The Oslo-based company has undergone a radical transformation under the leadership of Chinese billionaire James Yahui Zhou: Away from a pure tool, towards a highly profitable, AI-supported advertising and content platform.
Operational excellence meets share price inertia
The discrepancy at Opera could hardly be greater. Over the last 12 months, the share price has fallen by around 24 % to 26 %, while the S&P 500 has posted double-digit gains over the same period. Since the beginning of 2026, this trend has continued with a drop of around 5 %. However, a look at the books shows a completely different picture: In the third quarter of 2025, Opera increased its revenue by 23% to USD 151.9 million, once again exceeding its own forecasts.
The development of profitability is particularly impressive. With an adjusted EBITDA margin of 24% and a free cash flow of USD 21.3 million in the third quarter of 2025, Opera is operating at a level of efficiency that many SaaS companies can only dream of. Cash reserves amount to a solid USD 119 million with minimal debt.
The equity story: class instead of mass
The secret of Opera’s success lies in its consistent niche strategy. Instead of competing head-on against Google Chrome or Apple’s Safari, the management focuses on user groups with high economic value. The “gaming browser” Opera GX is the showpiece here: with 33 million monthly active users (MAU), it serves a loyal target group that is extremely attractive to advertisers due to its high purchasing power.
This is reflected in the average revenue per user (ARPU). This rose to USD 2.13 in the third quarter of 2025 – a whopping 28% increase on the previous year. Opera has understood that modern web advertising is the key to success. Today, the advertising business (“Opera Ads”) already accounts for 63% of total revenue, while traditional search revenue (Search/Query) is growing steadily but declining proportionately.
The AI factor: Aria and Neon as new drivers
Opera is aggressively positioning itself as an “Agentic AI Company”. The integration of the AI engine “Aria” directly into the browser enables the company to monetize user queries in a way that goes beyond traditional search ads. With the introduction of “Opera Neon”, an agent-based browser for power users, the company is also testing a premium subscription model (approx. USD 19.90/month) for the first time, which could reduce its dependence on the advertising market.
Opera is also benefiting massively from regulatory changes in the EU. The Digital Markets Act (DMA) obliges gatekeepers such as Apple to display browser selection screens. As a result, Opera reported a tripling of daily active iOS users in Europe within two years – in some markets, installations even increased fivefold .
The rating: A bad joke?
Looking at the fundamental key figures, the Opera share looks almost absurdly cheap. The expected price/earnings ratio (P/E) for 2026 is around 8.7x to 12x. By comparison, the broad tech sector often trades at a P/E of over 40x. The company also has an EV/EBITDA multiple of just 8.3x.
The share is also a real dividend pearl for income investors. Opera pays a semi-annual dividend of USD 0.40 per share. Calculated over the year, this amounts to USD 0.80, which corresponds to a yield of over 5.8 % at the current share price. At peak times, this yield even climbed to over 8 % due to the fall in the share price. It is a rarity on the market for a growth company with a 25 % increase in turnover to pay such a dividend and also buy back its own shares on a massive scale.
Why the share is still struggling: the China question
So why are investors not buying in droves? The answer lies in the company’s ownership structure and history. Opera is almost 70% owned by Kunlun Tech, a Chinese company controlled by billionaire James Yahui Zhou.
This “China exposure” leads to a massive valuation discount. Investors fear geopolitical risks, US sanctions or interference by regulators such as the CFIUS – a concern fueled by the story of the app “Grindr” (which Kunlun had to sell under pressure from the US government). Added to this are old allegations made by short-seller Hindenburg Research in 2020 regarding opaque credit applications in Africa and related-party transactions. Even though Opera has largely been able to refute these allegations and its operating business is shining, there is still mistrust in its corporate governance.
Another technical obstacle is the high short interest. Around 22% of freely tradable shares (float) are sold short. This creates constant selling pressure, but at the same time offers the potential for a massive short squeeze if a positive catalyst causes the market to rethink.
Conclusion: Courage is rewarded – with a risk buffer
Opera Limited is currently perhaps the best value growth stock in the software sector. Anyone who believes in the independence of the management and the continuation of the ARPU increase will find a company with an excellent balance sheet, double-digit growth and a dividend yield that is second to none. Analysts from banks such as Piper Sandler and Goldman Sachs see price targets of between USD 23.00 and USD 33.00 – which would mean upside potential of up to 140%.
Nevertheless, Opera is not an investment for widows and orphans. The share remains a speculative bet on the decoupling of operational performance and geopolitical perception. Our assessment: For risk-tolerant investors, the current level of around USD 13.50 is an attractive entry opportunity. The dividend acts as a comfortable “interest rate” for waiting for the market revaluation. Cautious investors should wait for a bottom to form, as the technical downward trend is still intact.
Summary of key figures (as at Jan. 2026):
- Price: USD 13.46
- P/E ratio (expected 2026): approx. 8.7x
- Dividend yield: approx. 5.9% to 8.8%
- Sales growth 2025e: 25 %
- Analyst consensus: Moderate Buy / Strong Buy
