Shopify and AppLovin Could Surpass Palantir's Market Value
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 13 2026
0mins
Should l Buy SHOP?
Source: NASDAQ.COM
- Shopify Financial Growth: In 2025, Shopify's sales surged by 30% to $11.5 billion, while operating income rose by 37% to $1.5 billion, demonstrating strong performance in market share expansion and solidifying its leadership in the e-commerce sector.
- AI Feature Enhancement: Shopify's collaboration with Google on the Universal Commerce Protocol has led to a 15-fold increase in AI search orders, and its AI assistant, Sidekick, generated approximately 4,000 applications and created over 29,000 automations in just three weeks, showcasing its potential in enhancing operational efficiency and customer experience.
- AppLovin Advertising Revenue: In 2025, AppLovin's advertising revenue increased by 70% to $5.4 billion, with net income rising by 116% to $3.4 billion, indicating robust growth and competitive strength in the ad tech sector.
- Market Expectations: Analysts project annual earnings growth rates of 28% for Shopify and 44% for AppLovin, potentially driving their market values to $362 billion and $365 billion respectively within the next five years, highlighting their significant potential in an AI-driven market.
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Analyst Views on SHOP
Wall Street analysts forecast SHOP stock price to rise
31 Analyst Rating
18 Buy
13 Hold
0 Sell
Moderate Buy
Current: 118.520
Low
140.00
Averages
180.62
High
200.00
Current: 118.520
Low
140.00
Averages
180.62
High
200.00
About SHOP
Shopify Inc. (Shopify) is a Canada-based global commerce company. The Company provides essential Internet infrastructure for commerce, offering tools to start, grow, market and manage a retail business of any size. It provides platforms and services that are engineered and delivers a shopping experience for consumers online, in store and everywhere in between. Its software enables merchants to run their business across all of their sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. The Company's Shopify platform provides merchants with a single view of their business across all of their sales channels and enables them to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics and reporting, and access financing, all from one integrated back office. The Shopify's platform operates across 175 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Financial Services Expansion: MercadoLibre plans to expand credit and other financial services in countries like Mexico and Argentina, which may negatively impact short-term financial results but will help grow its ecosystem and unlock revenue opportunities in the long run.
- Shopify's Profitability Improvement: Shopify has turned profitable over the trailing 12 months and has gained market share in the U.S. e-commerce space, and while its forward P/E ratio of 82.6 raises concerns among investors, its robust platform and service library position it well for long-term competitiveness in the e-commerce wave.
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- Increased Market Competition: MercadoLibre faces intensifying competition in its core Latin American market, and although its stock began declining before recent volatility, the company is enhancing revenue and customer engagement through expanded free shipping services, which is expected to strengthen its market position.
- Financial Services Expansion: MercadoLibre plans to expand credit and other financial services in countries like Mexico and Argentina, which may negatively impact short-term financial results but will help grow its ecosystem and unlock revenue opportunities in the long run.
- Shopify's Profitability Improvement: Shopify has turned profitable over the trailing 12 months and has gained market share in the U.S. e-commerce space, and while its forward P/E ratio of 82.6 raises concerns among investors, its robust platform and service library position it well for long-term competitiveness in the e-commerce wave.
- Attractive Investment: Despite a 24% decline in stock price this year, Shopify's shares remain attractive, especially when considering its widespread application among small and mid-sized businesses and the moat created by high switching costs.
See More
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- Market Correction Impact: The Nasdaq Composite recently fell over 10%, entering correction territory, leading many investors to avoid equities due to challenging macroeconomic conditions, resulting in a cautious market sentiment that requires careful navigation.
- MercadoLibre's Strategy: Despite increased competition in the Latin American market, MercadoLibre is enhancing user engagement through expanded free shipping and increased credit offerings, which may hurt margins in the short term but are expected to drive revenue growth and ecosystem expansion in the long run.
- Shopify's Profitability: Shopify has achieved profitability over the past 12 months and continues to grow its market share, with a high price-to-earnings ratio of 82.6; however, its diverse platform and extensive service library position it as a compelling long-term investment opportunity.
- Investment Opportunity Analysis: Amid the Nasdaq's correction, MercadoLibre and Shopify are highlighted as growth stocks worth considering, as their long-term growth potential and market positions remain attractive despite facing short-term challenges.
See More
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- Trust Bank Approval: Coinbase has received conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) to operate as a trust bank, which will enable it to expand payment products under federal supervision, enhancing its competitive edge in the crypto payments sector.
- Regulatory Advantage: By being directly regulated by the OCC rather than state-level authorities, Coinbase will simplify its operations and reduce compliance costs, allowing the company to operate more effectively in the fast-evolving crypto industry.
- Payment Strategy Development: Coinbase has established a payment strategy centered around the stablecoin USDC, launching the Coinbase Payments product and collaborating with Shopify to position USDC as a mainstream global payment method, thereby increasing its market share.
- Clear Market Goals: CEO Brian Armstrong has set an ambitious goal to make USDC the number one stablecoin globally and aims to position Coinbase as the leading financial services app in the coming years, reflecting its aspirations in the crypto finance landscape.
See More
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- American Express Outperformance: American Express shares have risen 11.1% over the past year, significantly outperforming the Zacks Financial sector's -17.2%, driven by strong spending growth from Millennials and Gen Z, particularly in travel and dining, enhancing customer engagement and transaction volumes.
- Intuitive Surgical Strong Results: Intuitive Surgical exceeded revenue and EPS estimates in Q4, with 303 placements of the da Vinci 5 system, raising its installed base to 1,232, while global procedures grew 19% year-over-year, indicating robust market demand despite rising costs and budget constraints.
- Shopify's Continued Growth: Shopify shares gained 17.9% over the past year, although below the Internet Services sector's 72.6% growth, as new merchant-friendly tools and AI-driven solutions are helping merchants enhance customer engagement and support international expansion.
- Utah Medical Products Steady Performance: Utah Medical Products' shares rose 13.5% over the past year, with a market cap of $197.44 million and a strong cash position with no debt, providing flexibility for dividends and acquisitions, despite near-term risks from OEM/China exits impacting revenue replacement.
See More
Investment Opportunity Analysis for Nasdaq-100 Index
- Historical Return Potential: The Nasdaq-100 has achieved an average five-year return of 103% over the past two decades, with historical data suggesting that it could nearly double investors' money in the next five years, making it an attractive option for investors.
- AI-Driven Growth: The Invesco QQQ Trust is heavily invested in AI-related stocks, with top holdings including tech giants like Nvidia and Apple, which are expected to benefit from the rapid development of AI technologies, further enhancing market performance.
- Market Correction Timing: The Nasdaq Composite is currently in a market correction, down over 10% from its all-time high, and historical data indicates that such corrections have led to an average five-year return of 146%, presenting a favorable investment opportunity.
- Concentration Risk Warning: While the Invesco QQQ Trust has a reasonable expense ratio of 0.18%, its top ten holdings account for nearly 50% of its performance, prompting investors to carefully consider the concentration risk and potential price volatility.
See More
Nasdaq-100 Expected to Perform Well in Future
- Historical Returns: The Nasdaq-100 has achieved a 103% average five-year total return over the past two decades, indicating that investors could potentially double their money in the next five years, thus drawing increased investor interest.
- Market Correction Opportunity: The Nasdaq Composite fell into correction territory last month, which historically has been viewed as a good time to invest; after 13 market corrections, the Nasdaq-100's five-year total returns averaged 146%, suggesting a favorable outlook.
- AI-Driven Growth: The Invesco QQQ Trust is heavily invested in AI-related stocks, with over 80% of its assets concentrated in technology and consumer discretionary sectors, which are expected to perform well due to the rise of artificial intelligence, enhancing its investment appeal.
- Reasonable Expense Ratio: The Invesco QQQ Trust has an expense ratio of 0.18%, meaning shareholders pay $18 annually for every $10,000 invested; despite concentration risks, the current buying opportunity remains attractive for long-term investors.
See More
