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Palantir Technologies (NASDAQ: PLTR) shares have advanced 360% this year, outpacing the next closest stock in the S&P 500 (SNPINDEX: ^GSPC) by 100 percentage points. The data analytics company is now worth $180 billion, but certain Wall Street analysts expect Shopify (NYSE: SHOP) and Uber Technologies (NYSE: UBER) to surpass that figure before year's end in 2025.

• Shopify is currently worth $140 billion. The stock price needs to increase 29% next year for the company's market value to reach $180 billion. Equity analyst Anthony Chukumba at Loop Capital sees that a likely possibility. He recently raised his target price to $140 per share, implying 30% upside from the current share price of $108.
• Uber Technologies is currently worth $129 billion. The stock price needs to increase 40% next year for the company's market value to reach $180 billion. Several Wall Street experts see that as a likely possibility. The median target price (among 59 analysts) is $90 per share, implying 48% upside from the current share price of $61.

Here's what investors should know about Shopify and Uber Technologies.

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1. Shopify

Shopify provides a turnkey solution for commerce. Its software lets businesses manage sales across physical and digital storefronts. Shopify also provides financial solutions for payment processing, bill payments, tax filing, and account management. Additionally, the company also supports merchants with tools for marketing, logistics, and wholesale commerce, among others.

Shopify has a become a major player in the e-commerce market due to the breadth and simplicity of its platform. In fact, its merchants account for more than 10% online retail sales in the U.S., and more than 6% of online retail sales in Western Europe. That makes Shopify the second-largest e-commerce company in those regions behind Amazon.

Additionally, Forrester Research and the International Data Corporation recently ranked Shopify as a leader in wholesale commerce solutions. That is particularly encouraging because the wholesale market is four times bigger and growing 50% faster than the retail market, according to Grand View Research.

Shopify reported solid financial results in the third quarter. Revenue increased 26% to $2.1 billion on strong growth across subscription software and merchant services. And non-GAAP net income increased 46% to $0.35 per diluted share. The company expects similar sales growth in the fourth quarter. Management also noted encouraging momentum with international merchants, wholesale commerce, and offline retail.

Wall Street expects Shopify's adjusted earnings to increase at 25% annually through 2025. That makes the current valuation of 94 times adjusted earnings look rather expensive, but patient investors comfortable with volatility can still purchase a small position today. Shopify has reported above-consensus earnings for eight straight quarters.

2. Uber Technologies

Uber is the market leader in U.S. ride-sharing with 76% share, according to Bloomberg. It also ranks second in the restaurant food delivery space with 24% market share. That scale affords the company a key competitive advantage in that it generates significant data that lets Uber predict demand and route drivers very efficiently.

Additionally, Uber has another important advantage in its ability to offer ride-sharing and food delivery services through a single mobile app. That supports cost-efficient customer acquisition because Uber can cross-sell users on both sides of its platform. For instance, 31% of first delivery trips come from mobility users, and 22% of first mobility trips come from delivery users.

Uber delivered a good financial performance in the third quarter, despite missing gross booking estimates. Total revenue increased 22% to $11.1 billion on particularly strong sales growth in the mobility segment (29%), and modest growth in the delivery segment (19%). Meanwhile, non-GAAP net income increased 46% to $0.35 per diluted share.

CEO Dara Khosrowshahi on the earnings call told analysts that the number of Uber One members increased 70% in the quarter, a positive development given that members spend three times more than non-members. He also said Uber's advertising sales rose 80%. Investors may be overlooking that opportunity. Piper Sandler analyst Tom Champion believes Uber could earn $5 billion ad revenue in 2027.

With that in mind, Wall Street expects Uber's adjusted earnings to increase at 13% annually through 2025. That consensus makes the current valuation of 30 times adjusted earnings look tolerable. Patient investors should feel comfortable buying a few shares of Uber stock today.

As a final thought, the stock is down 30% from its high because some investors are worried about the impact of autonomous vehicles. But many analysts think Uber will benefit from robotaxis given its position as the largest demand aggregator in the ride-sharing market. Indeed, Uber has already partnered with Alphabet-subsidiary Waymo in several markets.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon, Nvidia, and Shopify. The Motley Fool has positions in and recommends Alphabet, Amazon, Nvidia, Shopify, and Uber Technologies. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.