What is going on at Opera Software?

[Karlston]

What is going on at Opera Software?

An analysis of Opera Software's performance by Hindenburg Research suggests that the company that is best known for its Opera web browser faces troubling times.

 

Note: Hindenburg Research specializes in "forensic financial research". Opera Software has not reacted to the report at the time of writing. The law firm of Kirby McInerney LLP is investigating these potential claims against Opera Limited.

 

The company was acquired by a Chinese-based investor group in 2018 prior to its IPO and things have taken a turn for the worse since then. The company's browser gross margins "collapsed by 22.6% in just one year" and the company has "swung to negative $12 million in LTM operating cash flow" from a positive $32 million in the 2018 period.

 

 

Hindenburg Research's analysis of Opera Software's performance and activity since the management change. It uncovered that Opera's CEO "was recently involved in a Chinese lending business" that saw its shares plunge by more than "80% in two years" and that Opera has started to make a "similar and dramatic pivot into predatory short-term loans in Africa and India".

 

The bulk of Opera's lending business is operated through applications offered on Google's Play Store according to Hindenburg Research and in "violation of numerous Google rules". The company concludes that these applications may be removed by Google at any time which in turn would cause Opera Software to lose a large part of the company's revenue.

 

According to Hindenburg, Opera generates "over 42% of the company's revenue" from its short-term loan business. If that would not be bad enough already, Hindenburg Research's analysis suggests that Opera's CEO is directing company cash into businesses owned by the Chairman to "draw out cash".

 

Hindenburg Research believes that Opera stock will go down significantly in the next 12 month period. The company set a price target of $2.60 on Opera; Opera Ltd's last course was $7.05 on NASDAQ on January 17, 2020. The course was at $9.02 two days prior but took a dive after reports went live.

What does this  mean for users of the Opera web browser?

It is too early to come to a final conclusion. The claims made by Hindenburg Research need to be be looked at and it remains to be seen how Opera will react to the report.

 

If the allegations are true, it could potentially mean the end of Opera and the Opera web browser.

 

 

Source: What is going on at Opera Software? (gHacks - Martin Brinkmann)

[mp68terr]

Liked opera 12.17... then OFF.

[halvgris]

best opera was 3.62 with no pictures. 😃 

 

opera has so many nice functions but far to heavy for my system.

hence: there might be a setting for low/mid range this has however

not been brought to my attention.

[PastJeff]

I'll stick with Firefox. It's not perfect by any means, but it seems more in line with my personal beliefs and opinions on how the internet should run. Opera does have some cool features, however I can't trust them anymore after getting acquired by the Chinese - does not bode well for internet privacy. 

[kasper]

for me opera best browser, chrome is hard on system etc frefox do not need and vivaldy I tried, but it's not it and accessories do not work

[Kalju]

What is going on at Opera...?

Nothing very special. The penultimate performance and then comes death.