OSLO - Opera (NASDAQ:OPRA) has announced the launch of its AI-powered browser, Opera One, for iOS devices today. The new version introduces a full screen browsing experience and a suite of features tailored to enhance usability on iPhones.
Opera One for iOS mirrors the design of its desktop counterpart, offering a simplified user interface with gesture-driven controls. The browser's introduction follows a significant increase in user adoption within the EU, attributed to the implementation of the browser choice ballot, which resulted in a 63% growth in new Opera users across the region.
The update includes a new Bottom Search function, positioning the search bar at the bottom of the screen for easier one-handed use. Users can choose from three navigation styles—Standard Navigation, Fast Action Button, and Bottom Search—to suit their preferences.
Opera has also revamped the search functionality to expedite browsing. Predictive search suggestions and swipe-to-search gestures aim to streamline the process. The browser's layout maximizes screen space by hiding navigation bars during scrolling, a feature that distinguishes it from other iOS browsers.
Opera One for iOS leverages artificial intelligence through its Aria technology. Aria assists with web searches, text generation, and even image creation using Google (NASDAQ:GOOGL)'s Imagen2 model, responding to voice inputs for hands-free interaction.
The new start page replaces the traditional newsfeed with a carousel of news, live scores, and tips, designed to blend seamlessly with the background for a clutter-free appearance.
Opera has maintained a Buy rating from TD Cowen, with a steady stock price target of $25.00. The firm highlights Opera's strategic focus on attracting affluent users in developed markets and the integration of AI features into Opera's core browser as drivers for sustained revenue growth.
Opera's financial position, marked by the absence of debt and robust free cash flow growth, was also noted as indicative of the company's potential to increase return of capital to its shareholders.
Furthermore, Opera has announced plans to integrate on-device artificial intelligence (AI) capabilities into its Opera One and Opera GX browsers. This move is supported by significant investments, including an NVIDIA (NASDAQ:NVDA) H100 card-powered AI data cluster in Iceland. Opera's browser AI, named Aria, recently gained a new image understanding feature, part of the company's ongoing AI Feature Drops program.
In collaboration with Google Cloud, Opera has integrated Google's Gemini models into its Aria browser AI, aiming to provide advanced AI features to its users. This partnership coincides with the latest AI Feature Drop, which includes free image generation using Google Cloud's Imagen 2 model on Vertex (NASDAQ:VRTX) AI and voice output capabilities.
InvestingPro Insights
Opera Limited (OPRA) has recently made headlines with the launch of its innovative AI-powered Opera One browser for iOS devices. As the company continues to expand its user base and enhance its product offerings, investors and market watchers are closely monitoring Opera's financial health and stock performance. Here are some key insights based on real-time data from InvestingPro:
InvestingPro Data indicates that Opera holds a market capitalization of 1.1 billion USD and has demonstrated robust revenue growth in the last twelve months as of Q1 2024, with an increase of 18.8%. The company's gross profit margin stands at an impressive 55.79%, reflecting its ability to maintain profitability amidst its expansion efforts.
In terms of stock performance, Opera has experienced a significant return over the last week with a 14.35% increase in price total return, signifying a positive reaction from the market possibly linked to the latest product launch and user adoption growth in the EU.
An InvestingPro Tip that stands out is that Opera holds more cash than debt on its balance sheet, which is a strong indicator of financial stability and may provide the company with the flexibility to invest in further innovation and market penetration.
Furthermore, it's worth noting that Opera does not pay a dividend to shareholders, which could suggest that the company is focusing on reinvesting its earnings back into the business to fuel growth and development.
For more detailed analysis and additional InvestingPro Tips, there are 8 more tips available on https://www.investing.com/pro/OPRA, which can help investors make more informed decisions regarding Opera Limited's stock.
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