Meet Warren Buffett Successor Greg Abel's Newest Investment: Bending Spoons. Should Investors Follow Suit and Buy the Stock?

Warren Buffett has historically been gun-shy about investing in technology stocks. And while he has made notable investments in the sector in recent years, including Apple and Alphabet, it was never a focus area for him when he ran Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB). However, with Greg Abel now in charge, the new CEO appears to be more interested in investing in the sector than his predecessor.

Abel's latest big bet is on recent tech IPO Bending Spoons (NASDAQ: BSP). Berkshire bought around $600 million worth of shares of the Italian company when it IPO'd at $29 in July. The conglomerate just invested another $330 million in the stock through a private placement this month. It is buying 10 million shares at $33 per share, which was an approximately 13% discount to the stock's price the day before the announcement.

So what exactly is Bending Spoons, and should investors be scooping up shares in this technology stock too?

Berkshire Hathaway CEO Greg Abel. Image source: Getty Images.

A digital technology holding company

In essence, Bending Spoons is a digital technology holding company. It acquires digital-first businesses with sizable revenue bases that it thinks it can meaningfully improve with the help of artificial intelligence (AI). Its goal is typically to increase an acquired company's revenue while reducing costs. It does this through upgrading the acquired business's technology, enhancing the user experience, rolling out new products faster, and improving marketing and monetization.

Since being founded in 2013, Bending Spoons has completed over 50 acquisitions. The number of deals it completes can vary from year to year, as it is looking for a 25% unlevered internal rate of return (IRR) and a 65% levered IRR. Unlevered IRR assumes deals are funded 100% with equity, while levered IRR assumes acquisitions are made using a combination of debt and stock.

In 2023, it made one deal worth $194 million, while last year it completed six deals worth $1.9 billion. Ahead of its IPO, it made two deals in Q1 of this year worth over $2 billion. It then acquired no-code platform Airtable for nearly $1.3 billion in September and soon after agreed to acquire online whiteboard company Miro for nearly $1.4 billion.

Bending Spoons generated $1.3 billion in revenue in 2025, which was up 95% from $671 million in 2024. Its adjusted operating income, meanwhile, more than doubled to $613 million, and its adjusted EPS climbed 57%.

Meanwhile, for Q2 of 2026, its revenue surged 126% year over year to $704.2 million. Its operating income soared 139% to $240.3 million, and its EPS climbed 163% to $0.28.

Ahead of its IPO, Bending Spoons' 10 largest businesses -- AOL, Brightcove, Eventbrite, Evernote, Harvest, komoot, Remini, StreamYard, Vimeo, and WeTransfer -- made up more than 80% of its revenue.

AOL, which it acquired for around $1.4 billion at the start of 2026, was its largest business prior to its IPO. The former internet giant still has more than 8 million daily active users and 30 million monthly users. In addition to email, it owns websites from which it derives ad revenue. It also makes money from internet security plans, and it still has a small dial-up business. Bending Spoons said the business is much better than most people realize and that it is growing in the low single digits.

Should investors buy Bending Spoons stock?

My answer would be no, especially after the huge jump in the share price following news of Berkshire's investment. Canadian company Constellation Software showed that the roll-up of mature, often undermonetized cash-generating tech companies can work -- at least before the AI era. However, Bending Spoons is making fewer, larger deals, using significant debt financing, and being much more high-touch, doing things like aggressively cutting costs, replatforming, and raising prices.

I'm not a huge fan of the roll-up model when it includes taking on significant debt, and Bending Spoons has been getting more aggressive with the number and size of its acquisitions. Given the size of its recent deals, any misses or increased AI disruption could significantly hurt Bending Spoons and its stock price in the future. As such, I'd pass.

Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, and Constellation Software. The Motley Fool has a disclosure policy.