Berkshire Hathaway CEO Greg Abel put another $330 million into Bending Spoons in October, on top of a stake bought at its IPO. The company is growing quickly and borrowing to do it, and the move points to a Berkshire that looks different from Warren Buffett's.
Berkshire Hathaway CEO Greg Abel steered another $330 million worth of idle cash into Bending Spoons in mid-October. The purchase adds to a $600 million stake that Berkshire bought as part of the company's IPO in the middle of this year.
Abel made his first choice in July and doubled down in October. Warren Buffett, who stepped back from both of his roles at the end of last year, never really embraced the higher-risk, higher-priced part of the technology sector.
A $30 billion owner of familiar brands
Bending Spoons is a $30 billion company that owns Eventbrite, Evernote, Vimeo and AOL. Its approach is to find digital platforms with more potential than is being unlocked, acquire them and make changes.
There are now over 1 billion registered users of its digital products, and over 400 million of them use its tech at least once per month.
Fast growth funded partly by debt
Second-quarter revenue of $704 million rose 126% year over year. Per-share earnings went from $0.11 in Q2 last year to $0.28. Adjusted profits rose from $0.17 to $0.46 on a 150% increase in operating income.
Growth comes with costs, however. Long-term debt grew from nearly $2.3 billion in mid-2025 to nearly $4.1 billion as of June 2026. Berkshire's $330 million purchase was also a dilutive private placement of newly created stock.
What analysts project
Analysts are calling for 47% revenue growth next year, with earnings growth of 37%. They project 48% bottom-line growth the year after that.
The stock trades at 24 times next year's projected per-share profit of $1.92, a valuation that would give Buffett no reason to balk, according to the Motley Fool.
Source: The Motley Fool
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