But after potential borrowers enter their personal information, the apps "either deny the borrower or grant a short-term loan with sky-high rates," Hindenburg says. Opera's lending apps lure prospective customers with appealing loan rates that appear to comply with Google's policy, Hindenburg said. In November, Jacobsen said Opera lent about $5 million in its most recent quarter. Indeed, on Monday, it defended its "microlending" business as "practical and helpful" in regions where credit cards can be a rarity. Opera doesn't dispute the fact that it lends money through the apps. Google Screenshot by Stephen Shankland/CNET Opera's stock has dropped 22% since a short-seller's report accusing the browser maker of offering lending Android apps that violate Google rules. But Opera is a tiny player compared to Google's dominant Chrome, accounting for only 2.3% of web usage, according to analytics firm StatCounter. The typical cash cow for browser makers is ad revenue shared by search engine partners. Opera, publicly traded since its 2018 initial public offering, is expanding beyond its browser business. Google didn't respond to a request for comment. "So we continue to be short shares of Opera."Īmong its achievements, Hindenburg boasts of research that led to a handful of cases with SEC charges and investigations and to several executive resignations. "Our business model involves betting against the worst companies we can find," Anderson said via email. Hindenburg founder Nate Anderson stood by his firm's research and added it's still shorting Opera stock. Last week, Opera said Hindenburg's report contained "numerous errors, unsubstantiated statements, and misleading conclusions and interpretations regarding the business of and events relating to the company." ![]() "We continue to provide more than 60 days repayment options for users, as required," the company said in a statement to CNET. ![]() The search giant said the decision was made "to protect people from deceptive and exploitative personal-loan terms." Under the rules, borrowers must have at least 60 days to repay their loans, must clearly disclose interest rates and must offer "a representative example of the total cost of the loan," according to Google's personal loan app policy. Such practice could violate Google's October ban on Android apps for short-term loans in the Play Store. The report also cited a November statement from Opera Chief Financial Officer Frode Fleten Jacobsen, who said the company's average loan length was about two weeks. The Hindenburg report offers examples of Opera's "predatory short-term lending" apps - OKash and OPesa in Kenya, CashBean in India and OPay in Nigeria - offering loans that are as short as 15 days. The news has pushed Opera's stock 22% lower since Wednesday, a move that should help Hindenburg make money because it bet that the company's share price would fall. Browser maker Opera's expansion into money-lending services in Kenya, India and Nigeria apparently violates Google's rules against short-term loans, a report from research and investment firm Hindenburg Research concluded.
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