Market Giants on the Rise: Shopify and Uber Technologies Poised to Surpass Palantir Technologies
The data analytics company Palantir Technologies has seen its shares skyrocket 360% this year, but certain Wall Street analysts believe Shopify and Uber Technologies will soon surpass its market value of $180 billion.
Shopify: The E-commerce Powerhouse
Shopify, currently worth $140 billion, needs a 29% increase in stock price next year to reach $180 billion. Equity analyst Anthony Chukumba at Loop Capital sees this as a likely possibility, having recently raised his target price to $140 per share, implying 30% upside from the current share price of $108. Shopify provides a comprehensive solution for commerce, allowing businesses to manage sales across physical and digital storefronts, and offers financial solutions, marketing tools, and logistics support. Its merchants account for over 10% of online retail sales in the U.S. and 6% in Western Europe, making it the second-largest e-commerce company in those regions.
Solid Financial Performance
Shopify reported strong financial results in the third quarter, with revenue increasing 26% to $2.1 billion and non-GAAP net income rising 46% to $0.35 per diluted share. The company expects similar sales growth in the fourth quarter, driven by international merchants, wholesale commerce, and offline retail. Wall Street expects Shopify’s adjusted earnings to increase at 25% annually through 2025, making the current valuation of 94 times adjusted earnings seem expensive, but still attractive for patient investors.
Uber Technologies: The Ride-Sharing and Food Delivery Leader
Uber Technologies, currently worth $129 billion, needs a 40% increase in stock price next year to reach $180 billion. Several Wall Street experts see this as a likely possibility, with the median target price among 59 analysts implying 48% upside from the current share price of $61. Uber dominates the U.S. ride-sharing market with 76% share and ranks second in restaurant food delivery with 24% market share. Its scale and ability to offer ride-sharing and food delivery services through a single mobile app provide a key competitive advantage.
Financial Performance and Growth Opportunities
Uber delivered a good financial performance in the third quarter, with total revenue increasing 22% to $11.1 billion and non-GAAP net income rising 46% to $0.35 per diluted share. The company’s advertising sales rose 80%, and Piper Sandler analyst Tom Champion believes Uber could earn $5 billion in ad revenue in 2027. Wall Street expects Uber’s adjusted earnings to increase at 13% annually through 2025, making the current valuation of 30 times adjusted earnings seem tolerable.
Don’t Miss Out on These Opportunities
Investors who feel they’ve missed the boat on buying successful stocks may want to consider Shopify and Uber Technologies. Both companies have strong financial performances and growth opportunities, making them attractive options for patient investors.
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