Hey bruce. What's your take on unit economics of ONews? I think the Street will always have trouble buying a browser that first IPOed 20 years ago. But they could buy a Toutiao made by a company that has a browser. My setback here is that the income statement doesn't show a great picture, with a payback period of gross profit of 24 months. It's too high for a consumer app, at least on my opinion. My fear here is they're buying revenue on ONews. The main detractor of revenue on ONews would be churn. Do you have a take here? Also, there are lots of simillar apps like News Break and Apex News. It seems a very competitive and commoditized market. You're essentialy buying traffic from Facebook with ads and then betting that the traffic is going to remain on your app and you're going to sell more ads to get your money back to those people. ByteDance is very good doing that (Toutiao in China, then Douyin/TikTok), but I think it's a hard thing to do. I think this stock will double if it becomes clear that ONews is good business. The private investments are a good upside risk, but the market will NEVER pay for those related parties investments.
I do not worry about Opera News, it is very good business. As Derrick Neuman said on investor blog, Opera does not subscribe to the adage of ""no news is good news”.We’ll take all the news we can get!"
I will also have more news on "Opera News" but you will have to wait for another substack article. Since you brought up Apex News, it is just a different branding of Opera News. At some point this year, Opera would rename Opera News to Apex News just like what they have done for Opera football to Apex football.
Omicron or not, market has been irrational to Opera for over 1 year now, starting with Q3 2020 results when they proved that they are recovering stronger out of covid than going into it. I would guess that any event which puts restriction on physical movement will accelerate adoption of online in Africa and Opera would benefit from this.
Hey bruce. What's your take on unit economics of ONews? I think the Street will always have trouble buying a browser that first IPOed 20 years ago. But they could buy a Toutiao made by a company that has a browser. My setback here is that the income statement doesn't show a great picture, with a payback period of gross profit of 24 months. It's too high for a consumer app, at least on my opinion. My fear here is they're buying revenue on ONews. The main detractor of revenue on ONews would be churn. Do you have a take here? Also, there are lots of simillar apps like News Break and Apex News. It seems a very competitive and commoditized market. You're essentialy buying traffic from Facebook with ads and then betting that the traffic is going to remain on your app and you're going to sell more ads to get your money back to those people. ByteDance is very good doing that (Toutiao in China, then Douyin/TikTok), but I think it's a hard thing to do. I think this stock will double if it becomes clear that ONews is good business. The private investments are a good upside risk, but the market will NEVER pay for those related parties investments.
I do not worry about Opera News, it is very good business. As Derrick Neuman said on investor blog, Opera does not subscribe to the adage of ""no news is good news”.We’ll take all the news we can get!"
I will also have more news on "Opera News" but you will have to wait for another substack article. Since you brought up Apex News, it is just a different branding of Opera News. At some point this year, Opera would rename Opera News to Apex News just like what they have done for Opera football to Apex football.
Wow, that Apex News is surprising.
But do you have a take on churn and unit economics? It's the only thing I do not have confort
I do have a take which I will share in a new post on Opera News. Personally, I am comfortable with the direction Opera is taking this business.
Omicron or not, market has been irrational to Opera for over 1 year now, starting with Q3 2020 results when they proved that they are recovering stronger out of covid than going into it. I would guess that any event which puts restriction on physical movement will accelerate adoption of online in Africa and Opera would benefit from this.