Prediction: 2 stocks that will be worth more than AT&T in 1 year

Oh, how the mighty have fallen. AT&T (T. 0.68%) is an icon business, with a dating history return to the 1800s. Yet its glory days seem to be over, and nothing makes that clearer than its current ranking among the world’s largest companies in terms of market capitalization.

As of this writing, AT&T is now the 93rd largest company in the world by market capitalization, with a value of 160 billion dollars. This puts him behind his long-time rival VerizonCommunications.

However, many other companies are trailing AT&T in terms of market capitalization. Let’s go have a watch two of the newest and most dynamic that I believe could surpass AT&T in the next 12 months.

Shopify

First of all up is the Canadian e-commerce giant Shopify (SHOP 5.67%).

As of this writing, Shopify has a market cap of $141 billion, which is just $19 billion behind AT&T. In a way, it’s already seen again, as Shopify’s market capitalization approached, then exceeded, AT&T’s market capitalization in 2021. Yet as pandemic restrictions eased, Shopify’s shares fell and its market capitalization did not not been higher than that of AT&T since the beginning of 2022.

Market cap data T by YCharts

NOW Shopify looks poised to dominate AT&T again. The company has just published excellent results (for the three months ending September 30, 2024), highlighted by:

Shopify’s online e-commerce platform continues to attract customers, young and old. With this growing interest, Shopify’s gross merchandise value is expanding, as its sellers sell A bigger quantity of products on Shopify platform.

Additionally, Shopify’s monthly recurring revenue increases as more business customers sign up for its services. Shopify’s subscription revenue represents just 27% of its overall revenue (the rest coming from its merchant solutions segment, which includes payment processing fees, SEO fees, and advertising).

Yet even though Shopify’s subscription revenue is only a quarter of its overall total, it’s very profitable. The company’s subscription business prides itself a disgusting one margin of 82%, compared to 53% for its merchant solutions segment.

Shopify’s fundamentals are quite strong, and given its momentum, I think the company’s market cap could easily surpass that of AT&T over the next 12 months.

Palantir Technologies

Next is Palantir Technologies (PLTR 1.42%)an artificial intelligence (AI) powerhouse that inaugurated in cutting-edge solutions for organizations around the world.

Palantir operates a platform which helps organizations implement great language models into their workflows. While Palantir initially focused on government organizations (and particularly military contractors as well as defense and intelligence agencies), the company has diversified. In its most recent quarter (the three months ending September 30, 2024), commercial revenue accounted for 43% of Palantir’s revenue..

Given the immense interest in AI-based solutions, business is booming. Palantir’s revenue soared 30% last quarter, while overall customer numbers jumped 39%. Additionally, Palantir CEO Alex Karp gave an overwhelmingly positive assessment and forecast, noting, “We completely gutted this quarter, driven by relentless demand for AI that won’t slow down.” socket.”

Palantir shoots everyone cylinders, while riding a tidal wave of demand for AI-based platforms.

Given its superior product offering and leadership in its niche, it won’t be long before Palantir’s market cap continues to skyrocket. And since its market capitalization (at the time of writing) is $138 billion, I predict it will exceed AT&T somewhere in 2025.

Jake Lerch holds positions at AT&T. The Motley Fool ranks and recommends Palantir Technologies and Shopify. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.