The Motley Foolยท2025-11-23 08:55Core Insights - AppLovin and Shopify are projected to potentially surpass Palantir's current market value of $369 billion within three years, driven by strong growth in earnings and innovative technologies [1] AppLovin - AppLovin specializes in adtech software utilizing advanced artificial intelligence models, primarily generating revenue from mobile games and recently launching an e-commerce advertising platform that achieved a billion-dollar revenue run rate shortly after its introduction [2] - The company has introduced a self-service dashboard that enhances automation and client onboarding, with expectations of unlocking significant opportunities globally [3] - AppLovin's Axon recommendation engine, which utilizes machine learning, has led to a fourfold increase in ad spend since its launch in mid-2023, and analysts regard it as a top-tier machine learning ad engine [3] - Wall Street anticipates AppLovin's earnings to grow at an annual rate of 53% over the next three years, potentially increasing its market value by 110% to $370 billion while reducing its valuation to 39 times earnings [3][4] Shopify - Shopify offers a comprehensive solution for omnichannel commerce, enabling merchants to manage their operations across various channels from a single platform, including essential services like payment processing and logistics [5][6] - The company has been recognized as a leader in e-commerce and wholesale commerce solutions, securing a strong market position through its user-friendly approach [6] - Shopify employs artificial intelligence in various capacities, including conversational shopping interfaces, workflow automation for merchants, and enhancing developer productivity [7] - Wall Street projects Shopify's earnings to grow at an annual rate of 32% over the next three years, which could lead to a 93% increase in its market value to $370 billion, while its valuation would adjust to 90 times earnings [8] Comparative Analysis - AppLovin is viewed as having a better chance of exceeding Palantir's market value due to its more favorable valuation, while Shopify has a history of exceeding earnings estimates and could capitalize on opportunities in larger enterprises and international markets [9]