Berkshire bought a $600 million stake in Bending Spoons at its July 2026 IPO.
Today, Berkshire announced it's spending another $330 million to grow its stake in Bending Spoons to 4%.
Shares of Bending Spoons (NASDAQ:BSP), the Milan, Italy-based maker of software that supports corporate mergers & acquisitions, shot up 35.4% through 10:35 a.m. ET Wednesday.
You can thank Berkshire Hathaway (NYSE:BRKA) (NYSE:BRKB) for that.
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Strange as it may sound to say, tech company Bending Spoons is a favorite of Berkshire Hathaway, a company better known for owning boring, stalwart brands such as Dairy Queen, Duracell, Fruit of the Loom, and GEICO. Berkshire bought a $600 million stake in the company at its July 2026 IPO.
Today, Berkshire announced it's spending another $330 million to grow its stake in Bending Spoons to 4%. The investment will net Berkshire an additional 10 million shares of the company at a private purchase price of $33 per share.
That's a 13% discount to what the stock cost at Tuesday's close. And after today's jump in share price, Berkshire is up 55.5% already on its purchase!
This trade is working out nicely for Berkshire Hathaway, no doubt. But is it too late to get in on Bending Spoons?
Valued at more than 16x trailing sales and more than 130 times earnings after today's run-up, the stock's not obviously cheap. Bending Spoons does boast considerable free cash flow, however, $453 million over the last 12 months -- about 80% more than reported net income -- and analysts polled by S&P Global Market Intelligence think it could grow earnings at 55% annually over the next five years.
At a 73x price-to-free cash flow ratio, I still see potential for Bending Spoons stock to go up in price. That said, the easy money in this stock has already been made. You'll probably find better bargains elsewhere.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.