Opera Limited's Stock Fall Due to Significant Investment in AI
Thursday, 25 April 2024, 19:15
Opera's Financial Performance
Q1 Results
- Revenue up by 17% to $101.9 million
- Earnings per share at $0.17 compared to estimates of $0.24
- High expenses due to new AI cluster investment
AI Investment Impact: Opera's earnings affected by high AI spending and operating cash flow usage.
Future Outlook
- Q2 revenue guidance of $108 million, up 15% YoY
- EBITDA margins expected to decrease, indicating ongoing profit challenges
- Market skepticism on AI investment returns
Stock Evaluation: Despite concerns, Opera's stock trades at low earnings multiples, attracting value investors.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.