Opera (NasdaqGS:OPRA) drew investor attention after reporting first quarter 2026 results with sales of US$175.77 million and net income of US$24.79 million, while also raising its full year 2026 revenue guidance.

Opera's latest earnings release and raised revenue guidance have arrived alongside strong momentum, with a 30 day share price return of 23.83% and a 3 year total shareholder return of 61.77%. This performance suggests improving sentiment around both shorter and longer term prospects.

If Opera's recent move has you looking at the wider software and AI space, this could be a good moment to scan the market with our screener of 60 profitable AI stocks that aren't just burning cash

With the stock up sharply over the past quarter and Opera guiding to higher 2026 revenue, investors now face a key question: is there still undervaluation on the table, or is the market already pricing in that future growth?

Most Popular Narrative: 12.7% Undervalued

Against a last close of $18.76, the most followed narrative points to a fair value of $21.50, framing Opera as modestly undervalued on discounted cash flows using a 8.14% discount rate.

While Opera is well positioned to capture the proliferation of AI-powered browsing and cross-platform synergy with upcoming launches like Neon and continued feature innovations, escalating competition from both incumbent browsers and AI services natively integrated into operating systems may quickly commoditize these advantages, potentially limiting Opera's capacity to grow average revenue per user and compressing long-term earnings growth.

Want to see what is baked into that $21.50 figure? The narrative leans on steady revenue expansion, firmer margins and a future earnings multiple that tightens against sector norms.

Result: Fair Value of $21.50 (UNDERVALUED)

However, this narrative can be challenged if rising compliance costs around privacy rules or heavier AI and MiniPay investment weigh on margins more than analysts currently factor in.

Next Steps

Overall, the story so far mixes optimism with clear areas of concern, so it makes sense to move quickly and weigh both sides for yourself by checking the 5 key rewards and 1 important warning sign.

Looking for more investment ideas?

If Opera has sharpened your focus, do not stop here. Use the Simply Wall St screener to quickly surface other stocks that might suit your approach.

• Spot potential bargains early by scanning a curated set of quality stocks trading below their estimated value through the 51 high quality undervalued stocks.
• Prioritize resilience by checking companies that pair steady fundamentals with stronger financial footing using the solid balance sheet and fundamentals stocks screener (44 results).
• Hunt for potential standouts that many investors may be missing with the screener containing 23 high quality undiscovered gems.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.