Mini Stock Notes: Five $10B+ Companies I Like Right Now
- J
- May 4
- 5 min read
Updated: May 7
These are five companies with a market cap over $10B that I like the look of right now based on a mix of current valuations and long-term fundamentals. Below you can see short snippets/bullet points highlighting some things worth mentioning for each company from an investment perspective, as I see it. The 5 companies are:
Investor AB (Sweden) - INVE-B
Hexagon AB (Sweden) - HEXA-B
Amazon (USA) - AMZN
Meta Platforms (USA) - META
SoFi Technologies (USA) - SOFI
As always, these are not buy recommendations. Always do your own diligence before taking investment decisions.
What - An investment company founded in 1916 that controls Atlas Copco, ABB, SEB, Mölnlycke and EQT, giving shareholders one‑ticket exposure to Northern Europe’s industrial backbone.
Why fundamentally - It runs with net debt < 4% of Net Asset Value (NAV), an overhead cost ratio under 0.1 %, and has lifted its dividend every year for over a century. It also has a great compounding returns record. See this previous note for a bigger deep-dive into Investor AB.
Why now - The May 2nd market close at 289 SEK is about 6 % below Q1 2025 NAV of 308 SEK. In general, just DCA over time in Investor and it will be OK in the end.
Why in 10 years - Atlas Copco and ABB should keep harvesting the automation and electrification boom, while Investor’s team can recycle proceeds from mature holdings into tomorrow’s Nordic growth champions.
Short‑term risk - A synchronised industrial slowdown or a continued stronger SEK (Swedish krona) would hit portfolio earnings adversely due to the heavy exposure to industrial exports.
Long‑term risk - If capital allocation misfires or listed stakes stagnate, the market may lock in a permanent “conglomerate” or holding discount that drags total‑return potential.
What -Hexagon does many things, but among the most important (as I see it) is that Hexagon builds the sensors and software that let factories, mines and entire cities turn physical reality into measurable digital twins.
Why fundamentally - Recurring revenue now exceeds 34 % of sales, gross margin tops 70 %, and the company sits inside high‑barrier niches where switching costs are brutal for customers. The current chairman (and previous CEO) Ola Rollén is extremely competent.
Why now - The share at 93 SEK trades on roughly 14-15x 2025e EV/EBITDA versus an industrial‑software peer median near 17-18x, after Q1 showed an order backlog at a multi-year high despite an 8 % EBIT dip. Management also just recently launched a €200m stock buy‑back.
Why in 10 years - Autonomous mining, smart‑city infrastructure and hyper‑precise manufacturing should grow far faster than global GDP, and Hexagon already owns the data pipelines that power them.
Short‑term risk - Any pause in heavy‑industry capex (mining, defence, US infrastructure) could push project deliveries out a few quarters.
Long‑term risk - If open‑source mapping platforms, ultra‑cheap LiDAR or something else commoditise measurement tech, Hexagon’s pricing power and software rates might erode.
What - E-commerce titan plus AWS, the world’s highest-margin cloud platform, and a top‑three digital‑advertising network. A world-class company by essentially any standard.
Why fundamentally - A high‑margin trio; AWS, ads and third‑party marketplace fees; generates cash that powers ever‑faster delivery, custom AI chips and new platform bets like Kuiper, creating a self‑reinforcing flywheel. As the mix keeps shifting from low‑margin first‑party retail to asset‑light services, Amazon’s margins and returns on capital expand almost in conjunction to each other, cementing a moat very few rivals can compete with.
Why now - Shares still trade at a modest mid‑teens EV/EBITDA (shares at ≈ $190 trade around 15x 2025e EV/EBITDA versus a mega‑cap median of 18x) while AWS growth is re‑accelerating, ads are compounding fast, and a stronger SEK means Swedish buyers pay materially less in local currency than they did six months ago
Why in 10 years - Historically Amazon adds a new multi‑billion segment every decade. Cloud, ads and fulfilment data enables a decent position to monetise the next wave of AI and logistics services. Few firms can match Amazon’s habit of turning heavy investment into new profit engines.
Short‑term risk - Ongoing antitrust probes, tariff uncertainties and any consumer‑spending decrease could squeeze near‑term margins.
Long‑term risk - A Temu‑style low‑price rival or forced break‑up could reduce the marketplace’s key network effects.
What - Runs Facebook, Instagram, WhatsApp and Reality Labs hardware while commercialising the Llama AI stack.
Why fundamentally - Owns the only social network that reaches half the planet daily, giving unrivalled data for ads targeting. Industry‑leading ROIC, a cash‑rich balance sheet ($70B) and five distinct revenue pillars (ads, messaging, hardware, payments, AI services) should ensure long‑term durability and network effects.
Why now - Q1 2025 revenue rose 16 % to $42.3b with a 41 % operating margin. AI‑driven ad tech lifts CPMs while Reels, business messaging and the new Llama‑API expand inventory. Shares at 597 USD trade on ≈ 18x 2025e P/E, a discount to the MAG7 median 24x. The cash pile of $70b offsets a capex guidance raised to $64–72b (which also sort of kills the “AI slowdown” narrative). Relatively favourable FX conditions right now (USD/SEK rate) for a Swede such as myself.
Why in 10 years - Success in mixed-reality or AI agents would open a huge new platform cycle. If Meta AI glasses ship > 1m units annually and Llama‑API captures AI search/shopping queries, "hardware‑plus‑software-plus-services" could rival Apple’s Services pool while 3b daily users (that are hard to displace for competitors) keep the ad engine humming.
Short‑term risk - Privacy trials and ongoing lawsuits, tariff‑driven fall in foreign advertiser spend (Asia‑Pacific region = 20% of sales).
Long‑term risk - Structural shift of to decentralized or paid social networks or prolonged Virtual Reality product cash burn. Global privacy law tightening that undercuts current and future targeting edge that is enjoyed to a great extent is also a potential concern.
What - A branch‑free, app‑first neo-bank that combines loans, high‑yield deposits, investing, and credit cards in one consumer “super‑app,” while its Galileo and Technisys divisions power payments and core‑banking software for 130+ other fintechs and regional banks.
Why fundamentally - Member base up 34% YoY to 10.9m. Internal cross-selling lowers customer acquisition costs. High-margin platform fees.
Why now - Q1 2025 revenue $772m (+20% YoY), raised 2025 guidance to $3.20–3.28b in revenue and Earnings per Share (EPS) to 0.25–0.28. At the current stock price ($12.7) we have an implied 3x 2025e sales vs US fintech median 5x. A strong SEK means the acquisition cost for a Swede like myself include a nice little "downside hedge".
Why in 10 years - If SoFi converts a meaningful slice of its current (which will grow substantially as well..) 11 million members from single‑product users into full‑suite households and scales Galileo/Technisys into an “AWS for banking‑as‑a‑service,” the business could evolve from a spread‑dependent lender into a high‑margin, utility‑style all-encompassing fintech platform.
Short‑term risk - A sudden rise in unemployment or new twists in U.S. student‑loan policy could spike credit losses and thus slow down ongoing momentum.
Long‑term risk - Margin squeeze if big banks successfully copy the super-app model or regulators cap tech-platform fee income.
By J
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