Teachers, nurses and other borrowers have waited years for approval to complete their payment obligation and access debt relief, the suit claims.
SUCCESS
Googling for Reddit answers is about to get harder
A JUST IN post from Polymarket stopped my scroll recently: Traffic to top U.S. news websites is collapsing as AI replaces traditional search.
I immediately thought of Reddit Inc. (RDDT), the online forum where a Google search has long been the front door.
Axios data shows visits to top U.S. news sites are down about 30% from their 2024 peak. Reddit has now shown what that shift looks like inside one company.
On Thursday, Oct. 29, 2026, Reddit said it will move to a logged-in-only experience, according to its third-quarter shareholder letter.
Tests begin this quarter in select markets outside the U.S. A Google search that lands on a Reddit thread may eventually end at a sign-in screen.
Also read: Cramer points to rare Reddit buy opportunity amid Google AI threat
Google’s AI answers are closing Reddit’s front door
Co-founder and CEO Steve Huffman told analysts the change is a big one for him personally. He went further with CNBC, calling Reddit the last platform with basically unfettered logged-out access. “I’ve been holding that line,” he said.
Google broke that line. Reddit said search referrals fell meaningfully in the third quarter, then by more than 1 million a week on average in October. If that pace holds, daily users could shrink by a low double-digit percentage this quarter from about 130 million, the company warned.
Huffman blamed AI Overviews and AI Mode from Alphabet Inc.’s (GOOGL) Google, which answer questions on the results page.
“The reality is the AI mode does not drive traffic,” he told Citizens analyst Andrew Boone on the earnings call. He added that “Reddit” still ranks among Google’s most searched words, so demand has not faded.
Google’s own numbers hint at why it keeps users close. Search and other revenue grew 12% in the third quarter, according to Alphabet’s earnings release. A business growing at that pace has little reason to send its audience elsewhere.
Reddit plans to test a logged-in-only experience outside the U.S. after Google search referrals dropped by more than 1 million per week in October.SOPA Images / Getty Images
The visitors Reddit is losing pay the least
The traffic Reddit is losing is worth less than it looks. More than half of its daily U.S. users browsed logged out last quarter, the shareholder letter shows. Yet logged-in and app users generate more than 80% of Reddit’s monetization, Huffman wrote.
In other words, Google is mostly taking away the crowd that pays less than a fifth of the bills. Logged-in users also hand Reddit more signals for ad targeting, the letter adds.
Data is the other prize. Huffman told analysts the vast majority of scraping happens through logged-out access. With Google licensing talks still underway, CNBC reported, closing that side door strengthens Reddit’s hand.
More Artificial Intelligence:
AI’s biggest business opportunity may not look like AI
AI racks are outgrowing old power: 2 chipmakers have a strategy
BofA splits software into winners and losers as AI agents arrive
Huffman said Reddit still wants visitors to get a taste of the site and shared links to keep working.
Only about 13% of eligible mobile web users see the prompt to download the app, the letter notes, leaving room to grow.
The most revealing line on the call came near the end. Huffman told Wedbush analyst Ygal Arounian that he expects total daily users and logged-in users to roughly converge over time.
Logged-in users totaled 53.5 million last quarter, against 130.3 million total, according to the letter.
That gap is the whole bet. If it closes through sign-ups, Reddit wins a smaller but far more valuable audience. If it closes through lost visitors, the headline user count could shrink for quarters, so investors should watch logged-in growth instead.
Wall Street cut targets despite a strong quarter
Strong results did not protect the stock. Reddit’s third-quarter revenue rose 53% to $895 million, according to the letter. Yet fourth-quarter guidance of $1 billion to $1.03 billion missed expectations, and shares dropped more than 15% after the release, CNBC reported.
That slide reaches index investors too, since Reddit joined the S&P 500 this quarter, the letter notes. Before the report, the stock was already near the bottom of its 52-week range of $119.27 to $263.50, according to StockAnalysis.
StockAnalysis put Reddit’s forward price-to-earnings ratio near 22.5 before the report. A 15% drop with unchanged estimates would pull that below 20. That looks cheap for a company still guiding to about 40% growth, unless users fall further than Reddit warned.
StockAnalysis shows a consensus Buy from 34 analysts, with an average target of $212.95. That predates Friday’s revisions, which included these, according to Investing.com:
Target halved to $150 from $300 at Needham, which kept a Buy rating.
Target cut to $135 from $190 at BofA Securities, which kept a Neutral rating.
Downgrade to Sector Weight from Overweight at KeyBanc, citing weaker search traffic.
Downgrade to Market Perform at Citizens, which cited slower user growth and fewer Google referrals.
Huffman left no doubt about direction. He told Jefferies analyst John Colantuoni the test will shape how Reddit makes the switch, not whether it happens.
The web’s oldest bargain is breaking down
For two decades, the web ran on a simple trade: Sites let Google read everything, and Google sent readers back. Reddit, the last big open holdout, is now ending it, according to its CEO’s account.
I have been seeing more sites complain about that broken trade lately, from big news outlets to small blogs that once lived on search clicks.
Axios reported that the slide is already pushing digital publishers into layoffs and consolidation. Reddit is the latest, and loudest, to stop waiting for Google to fix it.
Reddit’s tests outside the U.S. will show whether a sign-in screen builds loyalty or turns curious visitors away.
If the bet pays off, sites sitting on valuable archives will have a playbook to copy. Either way, the open web many of us grew up searching is getting smaller, one login prompt at a time.
More Stocks NewsServiceNow CEO makes striking ‘unicorn’ claim after $3M betMarvell may buy its own laser supplier as investors pull backJim Cramer has a new way of thinking about the biggest tech stocksStock Market Today (Oct. 30, 2026): S&P 500 sinks as Amazon, Intel losses shake Wall Street
New Poll Has Bleak News For Trump & GOP: Democrats Hold Double-Digit Lead Just Days Before Midterms
Just days before midterms, a new Emerson College poll shows Democrats with a sizable lead over Republicans on the generic congressional ballot.
Breeders’ Cup Offers Fantastic Wagering Opportunities
The Breeders’ Cup offers excellent wagering opportunities because of the depth of talent in all the races and large betting pools.
Home Equity Sharing: Pros and Cons
Key Takeaways
An equity sharing agreement is a contract in which the homeowner agrees to sell a portion of their home’s future price appreciation in exchange for a lump sum from an investor. They do not require monthly payments.
The homeowner can buy back the investment by repaying the original investment amount plus a percentage of the home’s appreciated value. Most agreements require homeowners to settle up after a certain amount of time has passed or when they sell the house.
Investment amounts can range between $15,000 to $600,000 or more, and the funds can be used for any purpose.
You may have to repay much more money than you initially received if your home value increases significantly. The exact share you’ll owe depends on your agreement and the investor you choose.
Equity is a big benefit for homeowners. Build up enough of it, and you can borrow against your equity and turn it into cash, using it for things like home repairs, renovations, medical bills, college costs, or even paying off high-interest debts, like credit cards.
But most home equity products — including the ever-popular home equity loans and home equity lines of credit (HELOCs) — involve monthly payments and interest, which can eat into your cash flow and make it hard to pay off other debts simultaneously.
For homeowners who want to tap their equity without taking on more monthly costs, home equity sharing agreements are an option. These arrangements allow homeowners to access their home equity without technically incurring debt. Instead, they essentially sell a percentage of their home’s future value in exchange for an upfront lump-sum payment.
There are no monthly payments or interest charged, and the amount owed is repaid at the end of a set time period or when the homeowner eventually sells the house. There are drawbacks, though. Learn about these and other important details about home equity sharing below.
What is a shared equity agreement?
Equity-sharing agreements are similar to investing in the stock market. The investor buys “stock” in your home and expects its future value to increase. When the agreement’s term is up or the home is sold, the investor recovers their original investment plus a percentage of any gains in the value of the home. On the other hand, if the property loses value, the investor loses as well, just as you would if selling a stock that’s lost value.
Kenon Chen, executive vice president of strategy and growth at property analytics firm Clear Capital, says home equity agreements have grown in popularity in recent years because they let homeowners access their equity without taking out a loan. This can make accessing equity easier and help keep cash flow free. It can also help you avoid the high interest rates the home equity loans and HELOCs can sometimes come with.
“They can be a really good option for folks that maybe are not ready to be approved for a traditional [home equity] product,” Chen says.
However, these agreements are complex contracts and aren’t governed by the same regulations that apply to traditional mortgage and home equity lenders. While they can be a good option for some homeowners, they also carry several risks you need to understand. Before signing any agreement, make sure you fully understand the terms, conditions and your potential long-term costs.
The pros of home equity sharing
No monthly payments
The most enticing upside to signing a home equity sharing agreement is that you won’t need to worry about the product’s debt cutting into your monthly budget anytime soon. Unlike traditional home equity loans or lines of credit, you won’t need to pay back the money owed in monthly installments, but rather as a lump sum at the end of the agreement. This keeps your cash flow free and avoids financial stress—at least for the time being. You also won’t pay interest.
No upfront payments required
Equity sharing agreements typically carry fees similar to those of home equity loans and lines of credit, including closing costs and origination fees. However, many home equity sharing companies let you deduct these costs from the funds they pay out. You’ll receive less if you choose this route, but you won’t need a large upfront cash payment to complete the transaction.
Investment amounts can be large, and you can use the money for any purpose
How much money you can obtain from an equity sharing company will depend on your home’s value and how much future equity you’re willing to sell. Companies have varying minimum and maximum investment amounts, ranging from $15,000 to $600,000. Additionally, there are no limits on how you can use the money.
You don’t need great credit
With traditional equity products like home equity loans, your credit score and other financial factors play a big role. With home-equity sharing agreements, the investor primarily looks at the value of the asset (your home) — not your financial attributes. In fact, with some companies, you can have a credit score as low as 500 and still qualify. Others have no income requirements, either.
Payoff times can be lengthy
Some home equity sharing companies offer agreements as long as 30 years, so you have time to use the funds as needed, and repayment isn’t due for many years down the road.
The cons of home equity sharing
You could owe much more than you received
Your home’s adjusted value, not the full appraisal value, determines the amount you’ll receive upfront and will play a part in how much you’ll have to repay. Because many investment companies lower your home’s value with a risk adjustment, you may end up owing money on equity gains that never happened.
The appreciation multiplier will also increase the amount you’ll have to repay the investor when the agreement ends, resulting in a much higher payment than you may initially expect.
There may be restrictions on when you can sell your home, make improvements or buy back the agreement
Because you are entering a legal agreement with a company over the future value of your home, your agreement may include limitations on what alterations you can make to the property that could potentially devalue it. Some companies can also limit your ability to opt out of the agreement before the term ends or charge you penalties if you sell your home prematurely.
You may need to sell your home to repay the investment
At the end of the agreed-upon contract period, you will need to make a lump sum payment of the initial investment amount plus a percentage of any equity gained. You may be able to pay this sum before the end of the agreement term if you decide to buy out the contract or sell your home. For most homeowners, however, reaching the end of the contract will mean selling their home, refinancing or finding another source of funding to repay the investment.
Limited availability
Home equity sharing agreements aren’t widely available. The few companies that do offer them typically limit agreements to a specific number of states — anywhere from 15 to about 30, depending on the company. You’ll need to shop around to find what options, if any, are available in your region.
How does a home equity sharing agreement work?
In a home equity sharing agreement, the company you are in business with will start by getting an appraisal to determine your home’s value and how much equity you currently own. Once the assessment is in, the company will apply a risk adjustment to that value — essentially a downward adjustment to offset the risk of future equity losses. Unison, for example, applies a 5% risk adjustment as of September 2026. This means you start the agreement already owing part of the “appreciated” value — the gap between the risk-adjusted and actual market value.
Home equity share companies will also apply an appreciation multiplier — a pricing adjustment that increases the investor’s share of your home’s increased value. For example, Hometap applies a 1.65x multiplier on investments settled within a five-year period, and a 1.8x multiplier on investments settled after five years.
If the company buys 10% of your home’s equity, you will be responsible for repaying the initial investment amount plus 16.5% or 18% of your home’s appreciation.
Each home equity sharing company will apply its own multiplier. As of September, 2026, Unison states its multiplier is typically 4x the investment percentage. So, if you sign an agreement and they buy 10% of your equity with a 4x multiplier, they will receive the original investment amount plus 40% of the gained appreciation when the agreement is settled.
Are there tax implications with a home equity sharing agreement?
The money you receive from an equity sharing agreement is generally not treated as taxable income. It’s considered an advance against your home’s future value, not earned income. The IRS, however, has not issued any guidance specific to equity sharing agreements, so this treatment reflects an industry practice rather than settled law.
These agreements also carry none of the tax advantages of a home equity loan or line of credit. With those products, you can deduct the interest under the following conditions: if you itemize, if the home secures the loan, if your total home acquisition is under $750,000 and if the money was used to purchase, build or substantially improve the home. These rules were made permanent under the One Big Beautiful Act. Because a home equity agreement isn’t a loan and charges no interest, there’s no interest to deduct.
You may owe capital gains tax when you sell. The standard exclusions — $250,000 for single filers, $500,000 for married couples filing jointly — apply the same way whether or not you have an agreement, and the amount you pay the investor does not reduce your gain. For example:
Adjusted tax basis (purchase price plus capital improvements): $350,000
Sale price: $700,000
Gain: $350,000
Paid to equity sharing investor: $115,000
A married couple filing jointly excludes the full $350,000 gain and owes nothing. A single filer excludes $250,000, leaving a $100,000 taxable gain and roughly $15,000 in tax at the 15% long-term capital gains rate. Your actual rate, however, can be 0%, 15% or 20%, depending on your income. High earners may owe an additional 3.8% net investment income tax. In both cases, the $115,000 paid to the investor does nothing for your tax bill: it isn’t a mortgage payoff, it isn’t a selling cost and it doesn’t raise your basis.
This is a simplified example. Your actual gain would also be reduced by selling costs such as agent commissions. The exclusion applies only to a primary residence — not a second home or investment property — and you must have owned and lived in the home for at least two of the previous five years before the sale. Consult a tax professional before signing an agreement or selling to see how an equity sharing agreement could affect your tax obligations.
What happens if you can’t repay?
A home equity sharing agreement may not be a loan, but it shares some common features. The investment company can place a lien on the property, just as a mortgage lender would when issuing a loan. If you fail to meet the agreement’s conditions and terms, or are unable to make the final balloon payment to buy back your equity, you may be forced to sell the home or risk foreclosure.
Equity sharing agreements are considered options contracts and therefore fall outside the legal disclosure protections offered by the Truth in Lending Act and the Consumer Financial Protection Bureau, so you must ensure you fully understand all the costs associated with a home equity investment.
These agreements are also attached to the property and are assumable. If you die, your heirs can assume the agreement and repay it when the term ends, or exit the agreement by paying the investment company. In case of a divorce, whichever partner keeps the home either assumes the agreement or buys the investment back.
Home equity sharing FAQs
Is equity sharing a good idea?
Home equity sharing agreements can be a good idea if you have a lot of home equity and need to borrow cash without taking on another monthly payment. Just be aware that if your home increases in value by the time the money comes due, you could end up paying much more than you borrowed.
What is the downside to a home equity agreement?
The biggest downside to a home equity sharing agreement is that the home equity investor could end up taking a big share of your home’s appreciation if it grows in value by the time your agreement ends. They also may come with restrictions on how you can improve your home or when you can sell it.
How does a home equity share work?
Home equity sharing is when you sell a portion of your home’s equity to an investor in exchange for a lump sum payment plus a portion of your home’s future value. They’re offered through a variety of investment companies, including Unlock, Hometap, Unison and more.
Who is the best lender for a home equity agreement?
The best home equity sharing company depends largely on where you’re located, as most companies only operate in a handful of states. Your credit score, how much equity you have, how much you’re looking to borrow, and other factors should influence which home equity investor you choose, too.
Summary of Money’s home equity sharing: pros and cons
Home equity sharing is an option for homeowners who may not want to take on new debt, can’t meet the standards of a traditional home equity loan or are looking to access their equity without making monthly payments. However, there are risks: you will need to repay the investment amount plus a percentage of the value gained at the end of the contract period. Weigh your options and speak with a financial advisor before deciding if a home equity sharing agreement is right for you.
Intel Sinks 29% On Earnings—As AI Spending Fears Worsen Tech Selloff
Intel and Amazon shares plunged on Friday morning as the broader tech sector dipped on heightened AI spending fears.
How KOOM NYC Brings Together K-Pop, Korean Brands And Big Dreams
KOOM Week 2026 featured conference sessions, a K-beauty and K-lifestyle pop-up, K-pop performances and more. Hear from the KOOM team about how the festival came together.
United Airlines cuts Canada routes amid shifting travel demand
Broader economic and political tensions between the United States and Canada are increasingly making their mark on commercial travel.
Canadian return trips by air from the U.S. remain 18.7% below September 2024 levels, according to federal travel data compiled by Statistics Canada, reflecting a continued pullback in cross-border travel amid economic and political uncertainty.
Against this backdrop of softer cross-border travel demand, United Airlines has cut five direct routes linking major American and Canadian cities, turning convenient nonstop flights into multihour layovers, based on schedule analysis by Simple Flying.
The loss of direct connections, however, may only be part of the challenge. Competition watchdogs are now examining carrier coordination in the region, warning that shrinking rivalry on key cross-border corridors could leave flyers facing higher ticket prices, according to the Competition Bureau of Canada.
United Airlines cuts 5 routes to Canada
United Airlines has ended five nonstop routes connecting major U.S. hubs to Canadian cities throughout 2026, Simple Flying noted.
The quiet rollbacks span key transborder corridors across both coasts and the Midwest, removing direct capacity on routes where United previously offered exclusive or seasonal nonstop service:
Chicago O’Hare (ORD) to Edmonton (YEG): United served as the sole nonstop operator on this route using Boeing 737-800 aircraft until service concluded in September 2026.
Washington Dulles (IAD) to Calgary (YYC): Flown with a mix of Boeing 737-800 and 737 MAX 8 aircraft, United ended this sole-carrier direct link in September 2026, with no flights scheduled for summer 2027.
Washington Dulles (IAD) to Halifax (YHZ): Operated via regional partner Republic Airways on an Embraer E175, this seasonal East Coast link wrapped up in September 2026.
Los Angeles (LAX) to Toronto Pearson (YYZ): Flown on Boeing 737 MAX 9 aircraft, United ceased operating this transcontinental corridor in September 2026, leaving the market covered by Air Canada and Porter Airlines.
Newark Liberty (EWR) to Vancouver (YVR): The cross-country route, which used a combination of Boeing 737-900 and MAX 9 aircraft, concluded in October 2026, leaving Air Canada as the remaining nonstop operator on the Newark–Vancouver route.
United Airlines has ended five nonstop routes connecting major U.S. hubs to Canadian cities.CHUYN / Getty Images
Regulators sound the alarm over higher fares
Separately from United’s route reductions, Canadian regulators are examining a proposed expansion of the two airlines’ partnership on 10 other cross-border routes.
On Oct. 28, Canada’s federal Competition Bureau warned that deeper commercial coordination between United Airlines and partner Air Canada would likely reduce competition and drive up airfares on critical cross-border corridors.
The two carriers already coordinate pricing and split revenues on many transborder flights under a joint business agreement. However, they are now seeking government approval to lift restrictions on 10 specific routes where coordination had previously been barred under a 2012 consent agreement to protect competition.
“Competition between airlines helps keep fares lower and gives travellers more choice and better service. Our review found that allowing Air Canada and United to coordinate on these routes would likely reduce competition on key Canada-U.S. routes and lead to higher prices for travellers,” stated Interim Commissioner of Competition Jeanne Pratt.
Watchdogs concluded that allowing Air Canada and United to coordinate rather than compete on these city pairs would remove direct rivalry.
Regulators discovered that Air Canada and United together control 100% of all nonstop passenger traffic on five of the affected routes.
With substantial barriers preventing other airlines from launching competing services, the agency warned that the arrangement would likely cost consumers millions of dollars annually.
A persistent chill in U.S.-Canada travel
The route contractions come as airlines manage an uneven post-pandemic recovery in leisure travel between the U.S. and Canada.
That broader slowdown is reshaping where travelers allocate their discretionary budgets. A nationwide consumer survey revealed that 60% of Canadians report being less open to traveling to the U.S. than at any point over the past year.
Almost two-thirds (63%) of those hesitant travelers said they are more likely to travel within Canada instead of choosing other options, according to the Leger Fall 2026 Travel Trends Report.
Related: United’s CEO defends charging travelers extra for a better seat
South of the border, tourism groups have sounded similar alarms over the decline of their largest source of international visitors. A 10% decline in Canadian visits could result in $2.1 billion in lost U.S. visitor spending and 14,000 fewer supported jobs, The U.S. Travel Association estimated in February 2025.
Airlines operating in the region have responded by systematically pruning cross-border capacity. Earlier this month, WestJet confirmed it was cutting service across 10 U.S. routes after seeing a sustained drop in transborder passenger demand, as reported by TheStreet.
That pullback followed Air Canada’s decision to drop its seasonal Toronto-Charleston service for summer 2027, after seasonal demand failed to rebound, as previously reported by TheStreet’s senior travel reporter Veronika Bondarenko.
What affected travelers should know
For flyers booking these corridors, the loss of direct service means trading convenience for connections.
On routes such as Los Angeles to Toronto or Newark to Vancouver, travelers can still find nonstop options operated by Air Canada and Porter Airlines on the former route and Air Canada on the latter, according to route data from The Aviation Hub.
For city pairs where United was the exclusive nonstop carrier, such as Chicago to Edmonton, passengers must now route through connecting hubs (e.g., Denver or Toronto), adding hours to transit times.
Under U.S. Department of Transportation rules, passengers are entitled to an automatic refund to their original form of payment when an airline cancels a flight to, from, or within the United States or makes a significant change to the itinerary, provided they do not accept alternative travel arrangements or compensation.
Related: CDC introduces new requirement for all flyers coming to U.S.
Warren Buffett’s Berkshire adds $330 million to a familiar bet
If you’ve ever saved an important note in Evernote, sent a massive file through WeTransfer, or watched a video on Vimeo, you’ve crossed paths with a tech business you may have never heard of.
It’s called Bending Spoons (BSP), and the Italian technology business has spent years buying up familiar digital brands and rebuilding how they generate sales.
Now Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) is putting more money behind it.
Berkshire completed another $330 million investment on October 29, as per MarketScreener, bringing its total commitment to $930 million and its ownership stake to 4%. The new purchase follows a $600 million investment in Bending Spoons’ July stock-market debut, as reported by CNBC.
That’s an unusual-looking bet for Berkshire, considering its preference for stable, predictable businesses, including insurance, railroads, and consumer staples, and its traditionally cautious approach to technology investments. Yet the appeal may be more familiar than it seems.
Bending Spoons isn’t selling the next must-have gadget. It’s looking to make more money from software customers it already knows. And the numbers reveal both the attraction and the risk.
Berkshire Hathaway invested $330 million in Bending Spoons, raising ownership to 4%.Kevin Dietsch / Getty Images
Berkshire Hathaway doubles down on Bending Spoons stock
Berkshire’s growing interest in technology marks a pivotal shift from the era when Warren Buffett and Charlie Munger were at the helm, when the company largely avoided businesses whose competitive advantages were difficult to predict.
More Warren Buffett:
Warren Buffett’s $142 billion fortune hits a new milestone
Warren Buffett’s farewell letter has 4 words for every investor
Warren Buffett shares a simple rule for surviving a market crash
Buffett’s investment in Apple helped change that perception.
“I didn’t go into Apple because it was a tech stock in the least,” Buffett told shareholders at Berkshire’s 2018 annual meeting as reported on by Fortune.
Instead, he focused on Apple’s loyal customers, its ecosystem, and the staying power of its business. That philosophy helps explain Berkshire’s increasingly substantial technology holdings, including Google parent Alphabet.
By June 30, Berkshire owned nearly 106 million Alphabet shares, worth approximately $37.8 billion, an 83% increase in Q2, as reported by Reuters. Alphabet had become its third-largest publicly traded stock holding, behind Apple and American Express.
And Buffett wasn’t merely watching from the sidelines.
In a July CNBC interview, he acknowledged personally initiating Berkshire’s investment in Alphabet.
“I initiated it,” Buffett said, although he clarified that CEO Greg Abel now has final investment authority.
Buffett also described his preference for “businesses that are going to earn high returns on capital for an extended period of time.”
Bending Spoons offers an interesting variation on that philosophy.
Instead of betting on the next technological breakthrough, the company buys established software businesses, improves their operations, and seeks to reinvest the proceeds into additional acquisitions.
CEO Luca Ferrari says Berkshire’s latest investment will help finance more attractive deals, although Berkshire hasn’t publicly explained its specific reasoning for increasing its stake.
Moreover, Bending Spoons takes a more hands-on approach, often changing prices, products, and staffing, which could help Bending Spoons make more money from well-known software brands, but there’s a risk. Customers may not like the changes and could eventually stop using those services.
Berkshire Hathaway’s biggest stock bets
Apple (AAPL): $65.95 billion, representing 22.04% of its stock portfolio.
American Express (AXP): $51.28 billion, representing 17.14%.
Coca-Cola (KO): $32.51 billion, representing 10.86%.
Alphabet (GOOGL): $28.16 billion, representing 9.41% in Class A shares.
Bank of America (BAC): $27.54 billion, representing 9.20%.
Bending Spoons (BSP): Berkshire has invested $930 million in total, including its latest $330 million investment, bringing its ownership to 4%. This is ownership of the company, not a percentage of Berkshire’s stock portfolio.Sources: Berkshire Hathaway’s June 30, 2026, SEC 13F and Kiplinger. Bending Spoons figures reflect its October 29 announcement. Portfolio percentages cover disclosed U.S. equities only.
Bending Spoons owns apps that millions already use
As mentioned before, Bending Spoons is behind some of the biggest software services on the web, including the note-taking app Evernote, the file-sharing service WeTransfer, the video platform Vimeo, the ticketing business Eventbrite, and the workplace tools Airtable and Miro.
It buys established software businesses, overhauls their operations, and holds on to them rather than sell them for a quick profit.
There’s tremendous value in the customers those acquisitions bring. Bending Spoons reported more than 500 million monthly active users and over 9 million monthly paying customers. Subscriptions accounted for 84% of Q1 2026 revenue, while customers who had subscribed for at least five years generated 48%. That said, no single customer accounted for more than 1% of sales.
Evernote shows how the strategy works. According to Bending Spoons’ regulatory filings, the average customer had used the note-taking service for 7.2 years at the time of acquisition. The company subsequently changed pricing, rebuilt parts of the product, and reduced staffing dedicated to Evernote from 341 full-time-equivalent positions to 60 by the end of 2024.
It also released more than 150 Evernote updates in 2025. By then, average revenue per monthly active user was 2.5 times its 2022 level. But higher subscription prices have also drawn criticism, showing the risk of pushing loyal customers too far.
The financial results show both the attraction and the challenge. Q2 sales climbed 126% to $704 million, while operating income rose 139% to $240 million. Organic revenue growth, however, was just 3%.
Acquisitions explain much of the difference. The question for investors is whether Bending Spoons can continue to find attractive deals while persuading existing customers to stay and pay more.
Berkshire’s familiar bet faces a new test
Bending Spoons is testing how far its acquisition strategy can go, but scooping up companies and growing its customers is only the first step. The company priced $1.8 billion in senior secured notes, with interest rates of 9.625% on the dollar tranche and 8.625% on the euro tranche. Those financing costs raise the bar for what acquisitions must earn.
The same applies to products. Higher subscription prices can boost revenue per customer, but changes that push longtime users away could weaken the cash flows that make these brands attractive.
It’s a familiar question for Berkshire shareholders. Buffett has emphasized finding businesses capable of earning high returns on capital over long periods. Bending Spoons still has to prove its acquisition machine can deliver that consistently.
Investors should look beyond headline revenue growth to organic sales, subscriber retention, operating margins, debt levels, and earnings per share. If those measures strengthen together, Berkshire’s stake could look prescient.
Related: Carvana CEO has surprising message for used-car buyers
This Inflation-Busting Bond Rate Just Hit a 20-Year High
Series I Savings Bonds, aka I bonds, haven’t been this attractive for 20 years, and that’s great news if you’re looking for a safe way to beat inflation.
The U.S. Department of the Treasury set the new combined rate for I bonds to 5.51% on Friday, up from the previous rate of 4.26%. The new rate of return is in effect for all I bonds purchased until the end of April 2027.
Must Read
You’re probably eligible to save money on car insurance. Compare rates for your ZIP code with this free — and fast — tool from Money.
Meet your financial goals faster: Take this free, no-obligation quiz to get matched with an advisor today.
These 6 hacks can help seniors save money on things they’re already buying.
The 1.25-point increase stems from elevated inflation over the past six months largely due to the war in Iran. The government-issued bonds are specifically designed to protect your savings from inflation, hence the “I” in I bonds. So when inflation increases, so do I bond rates.
This namesake perk is possible because the headline earnings rate is a combination of two separate rates.
At 5.51%, the new combined rate is the highest since November 2022. At the height of the pandemic-era inflation crisis, I bond rates hit 9.62% for the first time ever. While overall rates have since come down, the I bond’s lesser-known fixed rate now sits at 1.4%, which it has not reached since November 2006.
The fixed rate helps ensure the bond outperforms inflation over its entire 30-year term, or until you redeem it. In other words, with the new fixed rate, you can now safely beat inflation by 1.4% each year for up to three decades.
I bonds have an annual purchase limit of $10,000, and the funds cannot be withdrawn for the first year. Withdrawals within five years incur a three-month interest penalty.
What to know about new I bond rates
The new 5.51% rate is known as the combined or composite rate. This rate of return is guaranteed for six months as long as you make the purchase before the end of April 2027. The six-month clock starts the month you buy.
The combined rate has two key parts.
One rate changes every six months based on inflation trends during that period; it’s called the variable rate. This rate is predictable because it is always determined by inflation over the preceding six months, or in this case, from March to September.
The other, lesser-known rate is called the fixed rate. It is locked in for the life of the bond and is set directly by the Treasury Department, which has not publicly detailed exactly how it determines the rate. As mentioned, the fixed rate announced Friday is now 1.4%, the highest in 20 years, making I bonds a particularly attractive investment for anyone worried about inflation.
Combined, these rates are annualized to reach 5.51% — a solid return for any investment right now, let alone one that can guarantee outperforming inflation for 30 years.
“The key thing about I bonds is that they are an extremely safe investment, can never go down in value, allow deferral of federal taxes until redemption and have a flexible date for redemption,” David Enna, founder of an I bond-tracking site TIPS Watch, previously told Money. “They are a very good investment to use as a safe secondary emergency fund.”
Not every I bond is created equal, however, and the fixed rate is the reason why.
In 2022, when I bond rates exceeded 9%, the inflation-based variable rate was doing all of the lifting. The fixed rate was 0%. While the variable rate for bonds purchased back then is still keeping up with inflation, the fixed rate remains 0%.
As a result, the folks who still hold I bonds with a 0% fixed rate are now be earning less than the newly announced combined rate on those bonds. Their return is currently 4.08%.
On the other hand, those who purchased I bonds in May 2000 — when the fixed rate was at an all-time high of 3.6% — are now earning a whopping 7.75%.
When to buy I bonds
In addition to their inflation-hedging perks, I bonds have a unique purchase window. While rates change every six months in May and October, earnings are guaranteed for six months regardless of when you make the purchase.
To lock in the 5.51% rate for six months, you simply need to buy I bonds at any time before the end of April 2027. The bonds are only purchasable through TreasuryDirect.gov.
In effect, waiting until April 2027 would mean your six month earning window runs from April to October 2027, and then the bond’s variable rate would tick over to whatever rate gets announced in May 2027 while maintaining the 1.4% fixed rate.
When purchasing I bonds, keep in mind the annual purchase cap and withdrawal limitations.
The $10,000 annual cap resets with the calendar year, meaning folks who already hit the limit for 2026 will need to wait until January to buy more, but they will still have time to lock in the new 5.51% rate in 2027.
Never miss a Money story.
Join 700,000+ readers who get the latest financial news and advice delivered daily for free. Subscribe to our newsletters.