Prediction: 2 Stocks Set to Outpace AT&T in the Next 12 Months
Friday, Nov 15, 2024 3:58 am ET
3min read In the ever-evolving landscape of the stock market, predicting which companies will outperform is a challenging yet exciting endeavor. One iconic company, AT&T (NYSE: T), has seen its market cap decline, ranking it 93rd among global companies. However, two dynamic companies, Shopify (NYSE: SHOP) and Palantir Technologies (NYSE: PLTR), are nipping at its heels and poised to surpass AT&T's market cap in the next 12 months.
Shopify, a Canadian e-commerce giant, has a market cap of $141 billion, just $19 billion behind AT&T. Its e-commerce platform continues to attract clients, driving gross merchandise value (GMV) and monthly recurring revenue (MRR) growth. Shopify's subscription revenue, though only 27% of total revenue, boasts an 82% gross margin, indicating high profitability. With strong fundamentals and momentum, Shopify's market cap could easily surpass AT&T's within the next 12 months.
Palantir Technologies, an artificial intelligence (AI) powerhouse, has a market cap of $138 billion and is expected to overtake AT&T in 2025. Palantir's AI technology and expanding client base are key drivers of its growth trajectory. The company's platform helps organizations implement large language models into their workflows, with a focus on governmental organizations and commercial clients. In Q3 2024, commercial revenue accounted for 43% of Palantir's total revenue, reflecting its successful expansion into new markets. With a revenue growth of 30% and a customer count surge of 39% in the quarter, Palantir's market cap is expected to soar further.
Shopify and Palantir's growth rates outpace AT&T due to their focus on innovative, high-growth sectors. Shopify's e-commerce platform attracts clients, driving GMV and MRR growth (24% and 26% respectively). Palantir's AI solutions, particularly in large language models, fuel demand, with revenue surging 30% and customer count up 39%. Conversely, AT&T's growth drivers are more traditional, focusing on telecommunications services, with a lower growth rate of 0.91%.
Shopify and Palantir's valuation metrics and growth rates differ from industry peers. Shopify's P/E ratio of 5.67 is lower than the sector average of 17.96, indicating potential undervaluation. Its growth rates in revenue (26%), GMV (24%), and MRR (26%) outpace industry peers. Palantir's P/E ratio of 1.42 is significantly lower than the industry average of 24.23, suggesting it may be undervalued. Its revenue growth of 30% and expanding customer base indicate strong momentum. Both companies' lower P/E ratios and high growth rates may present attractive investment opportunities.
In conclusion, Shopify and Palantir are well-positioned to surpass AT&T's market cap in the next 12 months, driven by their innovative business models and strong growth potential. Investors should consider these dynamic companies as they seek to capitalize on the ever-changing market landscape. As always, thorough research and a balanced perspective are essential when making investment decisions.
Shopify, a Canadian e-commerce giant, has a market cap of $141 billion, just $19 billion behind AT&T. Its e-commerce platform continues to attract clients, driving gross merchandise value (GMV) and monthly recurring revenue (MRR) growth. Shopify's subscription revenue, though only 27% of total revenue, boasts an 82% gross margin, indicating high profitability. With strong fundamentals and momentum, Shopify's market cap could easily surpass AT&T's within the next 12 months.
Palantir Technologies, an artificial intelligence (AI) powerhouse, has a market cap of $138 billion and is expected to overtake AT&T in 2025. Palantir's AI technology and expanding client base are key drivers of its growth trajectory. The company's platform helps organizations implement large language models into their workflows, with a focus on governmental organizations and commercial clients. In Q3 2024, commercial revenue accounted for 43% of Palantir's total revenue, reflecting its successful expansion into new markets. With a revenue growth of 30% and a customer count surge of 39% in the quarter, Palantir's market cap is expected to soar further.
Shopify and Palantir's growth rates outpace AT&T due to their focus on innovative, high-growth sectors. Shopify's e-commerce platform attracts clients, driving GMV and MRR growth (24% and 26% respectively). Palantir's AI solutions, particularly in large language models, fuel demand, with revenue surging 30% and customer count up 39%. Conversely, AT&T's growth drivers are more traditional, focusing on telecommunications services, with a lower growth rate of 0.91%.
SHOP Market Cap
Shopify and Palantir's valuation metrics and growth rates differ from industry peers. Shopify's P/E ratio of 5.67 is lower than the sector average of 17.96, indicating potential undervaluation. Its growth rates in revenue (26%), GMV (24%), and MRR (26%) outpace industry peers. Palantir's P/E ratio of 1.42 is significantly lower than the industry average of 24.23, suggesting it may be undervalued. Its revenue growth of 30% and expanding customer base indicate strong momentum. Both companies' lower P/E ratios and high growth rates may present attractive investment opportunities.
In conclusion, Shopify and Palantir are well-positioned to surpass AT&T's market cap in the next 12 months, driven by their innovative business models and strong growth potential. Investors should consider these dynamic companies as they seek to capitalize on the ever-changing market landscape. As always, thorough research and a balanced perspective are essential when making investment decisions.
