Bending Spoons Shares Jump 42% as Valuation Analysis Points to Upside
Bending Spoons S.p.A. was trading at $53.76, up 42% for the day, with a market value of $36 billion. The Milan-based technology conglomerate buys established software products and seeks long-term profitability by increasing revenue and reducing costs. A DCF estimate put intrinsic value at $63.57, while analyst consensus was Buy with a $45 price target.
Bending Spoons, founded in Milan in 2013, buys software products that already have traction and aims to keep them, improving profits through higher sales and lower expenses. Its shares recently changed hands at $53.76, giving it a $36 billion market value after a 42% one-day gain.
The rally followed a further $330 million commitment from Berkshire Hathaway. A discounted cash flow model estimated intrinsic worth at $63.57, while a levered version produced $76.02. Analysts covering the stock had a Buy consensus and a $45 average target, with estimates ranging from $36 to $72.
The sharp move may affect individual investors and funds holding the stock, as well as employees and customers of the software businesses Bending Spoons acquires. If its cost-cutting and revenue-growth model continues, users could see product changes, while workers may face restructuring. A higher valuation could also influence how other technology acquirers are perceived, though market sentiment can reverse quickly.