Can Opera’s AI Browser Strategy Reverse Its Stock Decline?

Despite Opera's shares declining by nearly 40% since the beginning of the year, recent developments suggest potential for recovery. The company's strategic pivot toward artificial intelligence represents a fundamental transformation, though significant questions remain about its execution and financial impact.

Market analysts maintain a cautiously optimistic long-term view despite the stock's recent performance. Research projections indicate Opera could achieve $813.6 million in revenue by 2028, with expected profits reaching $135.8 million. These forecasts rely on the company maintaining an annual growth rate of 13.6%.

Based on these financial models, analysts estimate a fair value of $25.50 per share—representing potential upside of approximately 89% from current trading levels. However, this optimistic scenario depends entirely on Opera successfully monetizing its new AI-powered browser offerings.

European iOS Expansion Shows Promise

Opera is experiencing remarkable user growth within European markets, particularly on iOS platforms. Over the past two years, the company's daily active iOS users across Europe have nearly tripled. France has emerged as a standout market following the launch of Opera One for iOS, driven largely by integrated premium features including complimentary VPN services and built-in AI capabilities.

Should investors sell immediately? Or is it worth buying Opera?

This expansion establishes iOS as Opera's fastest-growing platform, marking a significant shift for a company traditionally stronger in other market segments.

Strategic Pivot Carries Dependency Risks

Opera's corporate strategy is increasingly clear: the scheduled September 2025 release of Opera Neon represents a full commitment to AI-enhanced browsers with advanced multitasking capabilities. This direction, however, introduces substantial risk through dependence on third-party AI models.

External AI dependencies could pressure profit margins should licensing costs for these technologies increase. The company's Chief Financial Officer, Frode Jacobsen, is scheduled to present Opera's strategic vision at tomorrow's Wells Fargo TMT Summit, where he's expected to emphasize Opera's evolution from traditional browser provider to AI-driven internet services platform.

The critical question remains whether Opera's AI innovations can attract premium users in sufficient numbers to reverse the dramatic stock decline witnessed in recent months. While hope exists within investment circles, conclusive evidence of successful execution has yet to materialize.