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Shares of social forum giant Reddit closed its first day of trading at $50.31, up up nearly 48% from its IPO price of $34 per share. The company had indicated a target range of $31 to $34 per share in the run-up to its public-market debut, eventually settling on the top-end of that interval. Prices are still bouncing, though have cooled and appear to be settling in at below $50.

With $804.0 million in 2023 revenue, and still unprofitable (with net losses of more than $90 million last year), Reddit may appear to be trading on the high end of its revenue multiple compared to the nearest comparable social media companies like Snap. But it has a significant AI story to tell that could excite investors about its future. Reddit sold $203 million worth of contracts to AI companies for access to its data earlier this year. And Reddit is a treasure trove of exactly the kind of training data that always-hungry, large language model AI companies need, which bodes well for this to become a serious growth part of its future business.

It’s worth noting that the FTC has opened an inquiry into Reddit’s plan to license its user data to train AI models. If investor interest is sparked due to the company’s AI strategy, it will be interesting to see how the stock continues to perform as that probe continues to unfold.

Another win for tech

Reddit’s strong IPO debut, following directly in the wake of Astera’s blockbuster public offering, could shake up the current market dynamics and narrative surrounding going public. In the wake of a compression in tech valuations since the implosion of the 2021-era asset bubble, few tech companies have tested public markets. In part this is due to private-public valuation mismatches, among other factors.

But with the first two tech IPOs of the year both performing well, there’s less weight in the argument that waiting is the best course of action for healthy private-market tech companies. With interest rate cuts anticipated in the back-half of the year, some companies may hold off a little longer, but Astera and Reddit are indication that the waters are warm for tech shops that can show growth, perhaps profit on a quarterly if not yearly basis, and have something to say about AI in their prospectus.

Early trading results do not always augur a trouble-free public market life, however. Many 2021-era tech IPOs have lost value since their early, hot debuts. Still, charts that point up are more bullish than charts that do not. If the double-header of IPO winners this week does shake loose more offerings from tech companies on the sidelines – both well-known IPO candidates like Turo that have filed publicly, those like Circle that have filed privately, and the companies that are simply big enough and old enough to do so – venture investors that did not put capital into either Astera or Reddit may have cause to sing their praises.

Will the IPO window genuinely open?

If the IPO does open under current market conditions, there’s reason to expect the situation to hold, or even improve as the year continues. The Nasdaq Composite reached a new 52 week high today, with the index peaking at a higher maximum than it did back in 2021. That means that tech shares are, by one metric, as valuable as they have ever been.

Secondaries investors recently told TechCrunch that they weren’t sure that a successful Reddit IPO would be enough to bring life back into the IPO market in 2024. But with Astera Lab’s impressive performance yesterday and Reddit’s strong showing today, maybe there will be more life in the IPO market this year than many thought.

One can hope.

Toni Belloni, one of the luxury mogul's most trusted lieutenants, will step down and hand over his duties to Stéphane Bianchi.

PARIS — In the latest chapter of a generational changing of the guard, LVMH Moët Hennessy Louis Vuitton announced that Toni Belloni, one of Bernard Arnault’s most trusted lieutenants, will relinquish his key duties at the French luxury conglomerate and hand over his responsibilities to Stéphane Bianchi.

After more than 23 years working alongside Arnault, Belloni is to step down as group managing director and chairman of the executive committee of the LVMH group and leave the board of directors following the annual general meeting scheduled for April 18, LVMH said in a statement issued after the market close Thursday.

Bianchi, who has moved swiftly up the ranks since joining the group in 2018, will chair the executive committee and exercise, alongside Arnault, the strategic and operational supervision of the group’s brands, which range from Louis Vuitton and Dior to Tiffany & Co., Sephora and Moët & Chandon.

Previously president of LVMH’s watches and jewelry division, the 59-year-old will also oversee the presidents of the regions and the group’s digital and data transformation, the group said.

Belloni, who is 69, will be in charge of strategic missions for Arnault and will be appointed president of LVMH Italy. “The idea is not at all to stop working. But today, I wanted to have more time for others, and primarily for my family,” Belloni said.

The announcement comes as Arnault, who turned 75 this month, prepares his succession by tightening his family’s grip on the group’s leadership and transitioning some of his most senior executives to advisory roles.

At the AGM next month, LVMH will propose the appointments of his sons Alexandre Arnault and Frédéric Arnault to the board, as reported.

Alexandre Arnault, executive vice president of product and communications at Tiffany, and Frédéric Arnault, chief executive officer of LVMH Watches, will join their siblings Antoine Arnault, head of communication, image and environment at LVMH, and Delphine Arnault, chairman and CEO of Christian Dior Couture, on the board.

Meanwhile, group veteran Michael Burke has succeeded Sidney Toledano, 72, at the head of LVMH Fashion Group. Toledano left the executive committee and became an adviser to Arnault in the handover, which took effect on Feb. 1.

Arnault has shown no indication that he intends to retire. In 2022, LVMH shareholders voted in favor of a resolution to extend to 80 the age limit for him to serve as CEO. Previously, the company’s bylaws fixed 75 as the age limit.

The LVMH boss had hinted at a new role for Bianchi at the press conference in January where the group reported another year of record results.

“Since joining the group, Stéphane Bianchi has demonstrated rare leadership and management qualities while immersing himself in the group’s entrepreneurial and family culture,” Arnault said in Thursday’s statement.

While LVMH is known for growing and grooming executive talent from within, Bianchi spent a large portion of his career at the Yves Rocher Group, where he was CEO from 1998 to 2015, directly managing the Yves Rocher and Petit Bateau brands.

At LVMH, he initially focused on the watch maisons Tag Heuer, Hublot and Zenith, gradually adding the jewelry houses Tiffany, Bulgari, Chaumet, Fred and Repossi to his remit. LVMH did not name anyone to replace him in that position.

“I am delighted by his new role and am convinced that with Stéphane at my side, and with the entire executive committee and the group’s employees, we will take the success of the LVMH Group even further, while respecting our values and commitments,” Arnault said.

He credited Belloni with being instrumental to the growth of LVMH, which last year became the first European company to reach a $500 billion market value.

“Toni has been an essential partner for me and a very important member of the LVMH family. I would like to thank Toni for his exceptional contribution over the last few years,” Arnault said.

“Inspiring, curious and unfailingly loyal, he has participated in all the acquisitions of recent years and has supported the growth of the group and its teams with agility and pragmatism. His vision of luxury, of the markets, and his work with our teams have been considerable assets,” he added.

Belloni joined the French luxury giant in 2001 after a 22-year career at Procter & Gamble. He is widely credited with engineering the strategy that saw LVMH focus resources on star brands, while tailoring new strategies for the individual businesses.

He has also played a key role in dealmaking, including LVMH’s $16.2 billion acquisition of storied American jeweler Tiffany in 2019, its largest purchase to date.

“Never a dull moment!” Belloni said in summing up his tenure at the group.

“As I step down from my current role, I realize how fortunate I have been to play a leadership role at the heart of one of the most extraordinary entrepreneurial ventures of recent decades. I would like to thank Mr. Arnault most sincerely for the opportunity he has given me, and even more so for the trust he has always placed in me,” he added.

“Working alongside him has been a unique, stimulating experience, full of challenges and learning, with exemplarity as my compass,” he said. “We have achieved excellent results, always respecting our values and supporting numerous initiatives for the benefit of the greatest number of people. It is now up to Stéphane to take us even further.”

A graduate of the Institut d’Etudes Politiques de Paris, Bianchi started out as a consultant at Arthur Andersen. He described his first five years with LVMH as “rich, exciting and demanding,” as he pledged to “always and relentlessly” strengthen its success.

“By joining the LVMH group at the end of 2018, I made the choice to join a family group, chaired and led by a visionary man, and carrying values to which I am deeply committed: legacy, long-term vision, timeless desirability of our maisons and products, and a permanent quest for excellence in all our actions,” he said.

LVMH said the board of directors meeting on April 18 would also be asked to appoint Chinese American businesswoman and lawyer Wei Sun Christianson as a director. Christianson has a lengthy career in finance, serving as CEO China and co-CEO, Asia Pacific, for Morgan Stanley, where she worked for close to 20 years.

“Wei Sun Christianson’s financial culture, her understanding of the luxury goods market and above all her in-depth and invaluable knowledge of China will be invaluable assets for the board of directors,” Arnault said.

Proxy-advisory firm ISS urges shareholders to vote in favor of adding the activist investor to the entertainment giant’s board

Nelson Peltz notched a big victory in his proxy fight with Disney DIS 0.04%increase; green up pointing triangle.

Institutional Shareholder Services, the influential proxy-advisory firm, recommended Thursday that Disney shareholders vote to add Peltz to its board.

ISS recommended shareholders support all but one of Disney’s nominees and didn’t endorse the other one put forward by Peltz’s Trian Partners, former Disney finance chief Jay Rasulo, according to a 34-page report the proxy firm sent to investors.

It also recommended voting against three nominees put forth by a smaller activist investor, Blackwells Capital.

The other major proxy adviser, Glass Lewis, came out in favor of all of Disney’s nominees earlier this week.

The mixed results highlight the uncertain outcome of the biggest proxy fight in years, which will be settled at Disney’s annual shareholder meeting on April 3.

Proxy advisers’ recommendations can have major sway over director elections, with many institutional shareholders taking their cue from them.

A 2023 report from Barclays found that 75% of nominees backed by ISS get elected.

Trian argues that it can help “restore the magic” after Disney’s financial results deteriorated in recent years and that the company should put clearer chief-executive succession plans in place, improve the guest experience at theme parks and explore shrinking Hulu, among other things.

ISS argued that adding Peltz to Disney’s board could help with succession planning. Bob Iger returned to the top job at Disney in 2022 after his successor, Bob Chapek, was ousted—and just as Peltz was beginning to amass a stake. Iger had stepped down as CEO and named Chapek as his successor two years earlier.

“Dissident nominee Peltz, as a significant shareholder, could be additive to the succession process, providing assurance to other investors that the board is properly engaged this time around. He could also help evaluate future capital allocation decisions,” ISS wrote.

Disney said Thursday that it disagrees with ISS’s recommendation that investors vote for Peltz.

Disney has said it established a committee to help pick its next CEO, while Iger has agreed to stay on through 2026. The company has made several other big moves since the proxy fight got under way that were met with enthusiasm from shareholders. They include an investment in “Fortnite” maker Epic Games, plans to stream Taylor Swift’s Eras Tour concert movie on Disney+ and a partnership with Fox and Warner Bros. Discovery to launch a sports-focused streaming service.

Disney shares are up nearly 30% so far this year, though they are still down sharply from a 2021 high.

ISS argues that while it believes Iger is the right leader for Disney at the moment, “there are lingering questions about the board’s ability to properly oversee the next CEO transition, whether it happens in 2026 or in later years, and the significant strategic changes the company is undertaking.”

Disney itself has received a flurry of support: “Star Wars” creator George Lucas, one of the company’s biggest individual shareholders, came out in favor of the company earlier this week. The company also has backing from Disney family members; JPMorgan Chase CEO Jamie Dimon, whose bank is defending Disney in the fight; and hedge fund ValueAct Capital.

Individual investors control more than one-third of Disney’s stock, more than is typical for a public company. That could work in Disney’s favor given that individual investors tend to support companies, if they turn up to vote at all.

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