Opera Limited (OPRA) announced the widespread availability of its built-in browser AI, Aria, to desktop, gaming users, and Opera for Android beta users, eliminating the need for an account login. This update allows a broader audience to experience Aria’s advanced features like Image Generation and Page Context mode directly.
The company is expanding Aria’s reach to Android and iOS platforms in its pursuit to revolutionize daily browsing with cutting-edge AI capabilities integrated into Opera One, Opera GX, and mobile browsers.
Enhancing User Accessibility and AI-Powered Browsing
Opera’s recent move to make Aria available to all users aligns with its focus on enhancing user accessibility and providing AI-powered browsing experiences. This step underscores the company’s dedication to promoting sustainable technological advancements.
Boosted User Engagement with AI Upgrades
Opera’s strategic upgrades to Aria AI assistant have substantially increased user engagement and monetization efforts, driving the adoption of enhanced AI-driven features. The launch of new products like Opera One for iOS and the Opera GX gaming browser in the second quarter of 2024 has effectively expanded Opera’s user base.
Opera GX saw remarkable success, attracting 500,000 new users in the second quarter alone, taking the total monthly active users (MAUs) to 30 million, marking a 27% annual increase.
By leveraging partnerships with tech giants like Alphabet’s Google Cloud, Microsoft, and NVIDIA, Opera has solidified its position in the market. The collaboration with Google Cloud to integrate Gemini models into the Aria browser AI, enhances user experiences through advanced image generation and text-to-audio capabilities.
Additionally, Opera’s optimized browser version for Arm-based Windows systems, supported by Microsoft’s App Assure and Qualcomm Technologies, showcases over double the speed to users and upgraded AI capabilities.
The establishment of an AI cluster in Keflavik, Iceland, powered by NVIDIA’s DGX SuperPOD with H100 Tensor Core GPUs, promises accelerated training and inference speeds, enriching AI capabilities for Opera’s browsers and services.
Positive Outlook for Opera Limited in Q3 2024
Opera anticipates revenues in the range of $119-$121 million for the third quarter of 2024, indicating a 17% year-over-year increase at the midpoint. Analysts’ consensus estimates align with this projection, anticipating a 17.64% revenue growth year over year.
The earnings estimate for the quarter is 23 cents, stagnant for 30 days, but forecasting an impressive 27.78% year-over-year growth.
Valuation and Investment Opportunity
Opera Limited’s shares are currently undervalued, evident from a Value Score of B. The company’s forward 12-month Price/Sales ratio stands at 3.05X, significantly lower than the industry average of 7.50X.
With a robust product portfolio and strategic partnerships, Opera is well-positioned to meet the demand for its products. The Zacks Rank #2 (Buy) for OPRA suggests that investors should consider accumulating the stock at present.
Is Opera Limited’s expansion of Aria AI a prelude to further growth in the tech sector? Only time will tell, but the signs are promising for investors looking to benefit from the potential of AI-driven browsing experiences.