Opera Limited: A Deep-Value Tech Play Riding on African Fintech and AI Browsers

By Daniel Brooks | Global Trade and Policy Correspondent

In the niche corners of Reddit's investment forums, a detailed bull case for browser developer Opera Limited (NASDAQ: OPRA) is gaining traction. The thesis, recently elaborated by a user known as nunchakusdragon, hinges on the company's classic value metrics and a hidden asset that could unlock substantial shareholder value.

As of late January, Opera shares were trading around $13.48, with a trailing P/E ratio of 15.76. The Norway-based company, which provides AI-integrated browsers for mobile and desktop, operates in a market fraught with existential questions. The rapid rise of AI-native interfaces threatens to disrupt traditional browsing, while Opera's significant revenue dependence on Google and substantial Chinese ownership add layers of investor caution.

Yet, at its current valuation near $1.3 billion, proponents argue the risks are more than priced in. Opera is profitable, carries minimal debt, and has paid semi-annual dividends, including a recent $0.40 per share payout. While its global user base has seen modest declines, revenue grew roughly 23% year-over-year in recent quarters, pointing to stronger monetization per user.

The most pivotal part of the investment thesis, however, lies off the balance sheet. Opera holds a 9.44% stake in Opay, a rapidly expanding African fintech platform with over 50 million users. Valued at $2 billion in its 2021 funding round, Opera carries this investment at a conservative $258 million. With rumors of an Opay IPO circulating for 2025-2026, its valuation could double or more, potentially making Opera's stake worth $400-$600 million—a sum that rivals the company's own annual operating revenue.

"This isn't just about a browser company anymore," said Marcus Thorne, a portfolio manager at Horizon Value Advisors. "It's a bet on the explosive growth of African digital finance, with a profitable, dividend-paying tech business attached at a very reasonable price. The Opay stake is a call option that the market isn't paying for."

Other analysts remain skeptical. Lisa Chen, a senior tech analyst at Axiom Capital, noted, "The core browser business faces immense pressure. AI assistants could make dedicated browsers less relevant. While Opay is promising, monetizing that stake isn't guaranteed, and the revenue concentration risk with Google is a glaring vulnerability."

A more pointed critique came from David R. Miller, a frequent market commentator on social media. "This is a value trap dressed up with fintech fairy dust," he wrote. "Investors are chasing a phantom IPO payoff while ignoring that Opera's main product is becoming obsolete. Heavy Chinese ownership in this geopolitical climate? No thanks. This is speculation, not investment."

Despite the debate, the value argument persists. Opera's stock has historically traded between $10 and $20, and it currently sits near the lower end of that range. Trading at approximately 1.9x EV-to-Revenue and 9-11x EV-to-EBITDA, it remains a standout for value hunters in a tech sector still dominated by growth narratives.

Disclosure: This analysis is based on publicly available information and investor commentary. It is not financial advice.

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