Opera Limited OPRA on Thursday announced that its built-in browser AI, Aria, is accessible to all desktop and gaming users, as well as Opera for Android beta users, without the need for an account login.

Previously restricted to signed-in users, this change makes it easier for a wider audience to experience Aria’s advanced features, including Image Generation, Image Understanding and Page Context mode.

Opera is also expanding Aria’s availability to Android and iOS platforms. It continues its mission to enhance daily browsing with advanced AI capabilities integrated into its Opera One, Opera GX and mobile browsers.

Can Strong Portfolio & Partner Base Aid OPRA’s Prospects?

The latest move aligns with OPRA’s focus on enhancing user accessibility and AI-powered browsing experiences, demonstrating its commitment to advancing technology sustainably.

OPRA’s shares have gained 19% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s return of 23.3% but outperforming the Zacks Internet - Content sector’s rise of 5%.

Opera’s Aria AI assistant upgrades have significantly increased user engagement and monetization, supporting its goal of enhanced AI-driven features.

In second-quarter 2024, Opera launched several new products and updates, such as Opera One for iOS and the Opera GX gaming browser, which helped expand its user base.

Opera GX, in particular, saw remarkable success, adding 500,000 new users in the second quarter. This brought its total to 30 million monthly active users (MAUs), up 27% year over year.

OPRA’s prospects are also driven by its rich partner base that includes Alphabet’s GOOGL cloud business Google Cloud, Microsoft MSFT and NVIDIA NVDA.

In May, Opera announced a collaboration with Alphabet’s Google Cloud to integrate Gemini models into its Aria browser AI, enhancing user experiences with advanced image generation and text-to-audio capabilities.

Opera also launched an Arm-optimized version of its browser, offering over twice the speed on Arm-based Windows systems and enhanced AI capabilities with support from Microsoft’s App Assure and Qualcomm Technologies.

Opera’s new AI cluster in Keflavik, Iceland, uses green energy and NVIDIA DGX SuperPOD with H100 Tensor Core GPUs. This setup promises four times faster training and 30 times faster inference, boosting AI capabilities for its browsers and services.

OPRA Q3 Guidance Positive

For third-quarter 2024, OPRA expects revenues in the $119-$121 million range, suggesting an increase of 17% year over year at the midpoint.

The Zacks Consensus Estimate for third-quarter 2024 revenues is currently pegged at $120.75 million, suggesting 17.64% growth year over year.

The consensus mark for earnings is currently pegged at 23 cents, unchanged in the past 30 days, calling for year-over-year growth of 27.78%.

Zacks Rank & Valuation

OPRA’s shares are currently undervalued, as suggested by a Value Score of B.

The forward 12-month Price/Sales ratio for OPRA stands at 3.05X, significantly below the industry’s 7.50X.

OPRA has a strong product portfolio and partner base, which are likely to provide traction to the demand for its products.

At present, OPRA has a Zacks Rank #2 (Buy), which implies investors can accumulate the stock right now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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