Berkshire Hathaway has given Bending Spoons (BSP) a powerful endorsement, agreeing on Oct. 14 to invest another $330 million after committing $600 million at its July initial public offering.
The company says this investment brings Berkshire’s ownership to 4%.
Investors celebrated, sending BSP shares up over 40% on Wednesday. But Berkshire’s enthusiasm doesn’t automatically make the stock attractive for everyone else.
In fact, it might just be somewhat bearish for ordinary retail investors like you and me.
Why Berkshire’s investment is dovish for BSP shares
Under the agreement, Bending Spoons will issue 10 million new shares to the conglomerate at $33 each. Closing is expected in the final quarter of 2026, subject to customary conditions.
Berkshire’s negotiated price actually sits about 40% below current levels. That’s your first red flag.
Loading up on BSP stock today simply means you’re buying it at a price well above Berkshire was willing to pay for it.
Plus, the mechanics more broadly are rather straightforward: once issued, those “additional” shares will reduce the percentage ownership of existing investors unless they buy more themselves.
Sure, dilution does not automatically destroy economic value. Berkshire’s investment equips BSP with fresh capital to finance profitable acquisitions.
But the question is whether those investments generate sufficient additional earnings to compensate for the larger share count.
Investors should not assume the outcome simply because Berkshire negotiated a deal it likes.
Why else isn’t Bending Spoons stock attractive
The operating picture offers another reason for restraint. Bending Spoons’ second-quarter revenue more than doubled to $704 million, but acquisitions drove most of that expansion.
Organic revenue growth was just 3%, with declining revenue at Remini and Splice partly offsetting contributions from Tractive and WeTransfer.
That gap matters because buying revenue requires capital and successful integration – it does not demonstrate equally strong demand across the existing portfolio.
Not that there isn’t real profitability here: Q2 operating income reached $240 million.
Nonetheless, acquisition financing also contributed to a $73 million year-over-year increase in interest expense.
Those figures describe an effective but demanding acquisition operation.
Investors should keep on the sidelines in Bending Spoons shares because the company’s Q2 release did not offer sufficient reassurance that existing products can “independently” sustain the overall pace of growth.
Bending Spoons is not available at a discount
Finally, valuation also plays a part in why investors should sit out.
Following Wednesday’s meteoric run, Bending Spoons stock is trading at nearly 10x forward sales and about 30x projected 2027 earnings.
Those multiples leave investors paying today for substantial future execution. A “premium” can be justified when an acquirer repeatedly turns overlooked businesses into durable earnings streams.
But it also makes disappointments expensive – even growing profits may fail to support the share price if investors lower the multiple they are willing to pay.
All in all, investors should wait. They should reconsider at a valuation that offers a “clearer cushion” against execution mistakes.
Berkshire’s involvement makes BSP worth studying; it does not establish that the price available to retail investors offers an attractive prospective return.
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