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Chief of high-flying Snowflake sells $344m this week, capping a spate of insiders selling software shares

The chief of US software company Snowflake cashed in $344m worth of shares in the company this week, taking his total sales in 2021 to more than $600m and capping a spate of selling by leaders of high-flying software companies.

The sales by Frank Slootman, who was not a founder of the database software company but was brought in 2019 to take it public, follows a surge in demand for cloud software since the start of the pandemic that has made it one of the hottest corners of the tech sector.

Snowflake’s shares dropped 10 per cent on Thursday amid a wider sell-off in tech stocks.

The company’s chief financial officer, Michael Scarpelli, also sold around $241m worth of shares this week. The sales accounted for around 80 per cent of the latest holdings the two executives have disclosed in the company.

Snowflake said the sales were “for financial and tax planning purposes”.

Other software company bosses who have cashed in this year include Eric Yuan, head of video conferencing company Zoom, who has sold $609m of stock, according to research from InsiderScore/Verity. Yuan’s sales have been spread over a year in which Zoom’s share price has steadily eroded, slipping 67 per cent from the peak it touched last year.

Dave Duffield, chair of HR software company Workday, and Henry Schuck, chief of ZoomInfo, which runs a database of business contacts, have also raised more than $600m each from stock sales this year, according to InsiderScore.

ZoomInfo said its CEO’s sales were “primarily” to cover a tax bill caused by a corporate restructuring. The other companies did not immediately give reasons for the share sales.

So-called software-as-a-service companies sell online access to their technology, meaning they were in high demand when businesses were forced to operate remotely after Covid-19. The Bessemer index of cloud companies rose nearly three-fold from the start of the pandemic, before falling back nearly 20 per cent over the past month. The high share prices have left many software companies vulnerable to even small disappointments.

Shares in DocuSign, an electronic signature company, plummeted more than 40 per cent earlier this month, the day after it issued a disappointing sales forecast. Its chief, Dan Springer, had already sold $82m worth of shares in the company earlier in the year, according to InsiderScore. Days after the stock collapse, he stepped back into the market to buy back $5m worth of shares.

The race to cash in comes as the US Securities and Exchange Commission is looking to tighten the rules around sales by corporate insiders. Most executives make such sales using 10b5-1 plans, under which they appoint someone else to decide on the timing of a sale to avoid the risk that they might fall foul of inside trading rules.

“Academic research has now shown repeatedly” that this blind trading rule has been “greatly exploited by insiders,” said John Coffee, a law professor at Columbia University. He added that the fact that the SEC’s commissioners voted unanimously this week to change the rules, despite being divided on other issues along political lines, pointed to “broad recognition that something was wrong”.

Other software chief executives who have been big sellers this year include Satya Nadella at Microsoft, who raised $285m by selling more than half his stake in November. Jeff Green at digital advertising platform The Trade Desk has raised $431m this year, Jeff Lawson of communications software provider Twilio has sold $173m of shares and Rob Bernshteyn of Coupa Software, whose software monitors business spending, has cashed in $141m.

While the spate of selling has made the software sector stand out, the founders of some of the most valuable tech companies have been the biggest individual sellers this year. Jeff Bezos has raised nearly $10bn, while Google founders Larry Page and Sergey Brin returned to the stock market for the first time in four years, selling some $1.3bn of stock between them.

Meanwhile, Elon Musk has sold $13bn worth of shares in Tesla, after asking in a Twitter poll whether he should sell in order to pay tax on some of his gains.

“For a while, I thought it was the morally right thing not to sell stock,” Musk said in an interview with the FT, adding: “A captain should go down with the ship.” But he said he had turned to Twitter after being accused of holding on to his shares in order to avoid paying tax.

Like Yves Saint Laurent, Alexander McQueen and Gianni Versace before him, the late Virgil Abloh leaves a powerful legacy. What does this mean for Off-White and Louis Vuitton?

Virgil Abloh was an icon and trailblazer. Called the Karl Lagerfeld of his generation, he brought intellectualism to streetwear with his label Off-White, while, conversely, injecting luxury giant Louis Vuitton with the ethos of hip-hop and skate culture.

But he also changed the fashion industry well beyond these brands, pushing the boundaries of collaboration, shaking up outmoded systems for creating and distributing products and opening the doors of fashion’s ivory tower to a wider cast of people, in particular young Black creatives, no matter if they lacked formal training.

His most significant legacy may ultimately be the way he reinvented what a creative director does: Abloh was multi-hyphenate talent, not just a designer and a DJ, but a branding maestro and a natural community builder who encouraged others to follow in his footsteps. “You can do it, too,” he used to say.

And yet, his talent was somehow singular. Which begs the question: can anyone replace him?

Louis Vuitton is a colossus that is far bigger than any one designer. As Vuitton chairman Michael Burke said in a recent interview, “the death of a designer is traumatic, but it’s not the death of the brand. Not at Vuitton.” Whether Virgil’s successor at the mega-label will deliver continuity or disruption remains to be seen.

But what does Abloh’s death mean for Off-White? Can the brand founded by the designer continue to grow on the back of the powerful legacy that he leaves?

Brief histories of Saint Laurent, Alexander McQueen and Versace may offer some signposts for what could be — or at least at add some context to the question.

Saint Laurent, the Kering-owned mega-label we know today, was built on the legacy of designer Yves Saint Laurent, one of the most transformative forces in 20th century fashion. He changed the way women dressed: replacing the signature cinched waist with a more fluid silhouette for his critically acclaimed debut collection for Christian Dior in January 1958; designing blazers, trousers and suits for women after debuting Le Smoking in 1966; and freeing the nipple with sheer organza blouses and transparent tops at the height of the sexual revolution in the late 1960s.

He incorporated art into his fashions, most notably with his 1965 Mondrian collection, but also in his use of Van Gogh, Warhol, Picasso, Matisse and Braque. He broke down boundaries in media and advertising, posing nude for the ad campaign for his first men’s fragrance in 1971, and was an early champion of diversity, casting the likes of Iman, Rebecca Ayoko, Katoucha Niane and Dalma Callado. He also added a new category to high fashion as the first couturier to create ready-to-wear.

YSL was acquired by the Gucci Group (now Kering) in 1999. Initially enthusiastic about the deal, Yves remained at the helm of the couture business whilst Tom Ford took over ready-to-wear. But as soon as Ford started to deviate from Yves’ codes, the knives came out.“ The poor guy does what he can,” said Yves to a gaggle of reporters.

Stefano Pilati hued close to the brand’s original DNA, faithfully reworking Le Smoking, the brand’s famous safari jackets and tulip skirts over his eight-year tenure. He also created one of the brand’s all-time bestsellers: the Tribute sandal. During his eight-year tenure, the brand grew turnover from €169 million to €344 million.

But major commercial success came, later, when Hedi Slimane took the reins in 2012, four years after Yves’ death. No doubt freed from the past, Slimane, inspired by the disruptive roots of the brand, mined its rock ‘n’ roll spirit, rebranding it as Saint Laurent and growing the brand to a turnover of €974 million within four years. In 2016, Slimane was succeeded by Anthony Vaccarello and the brand is now a major contributor of revenue and profit to Kering, surpassing €2 billion in sales 2019.

Alexander ‘Lee’ McQueen was undoubtedly one of fashion’s greatest disruptors. He combined mind-blowing technical ability — his team learned never to say no to a challenge because they would often come into the studio in the morning to find a finished garment that McQueen had spent the night resolving himself — with an innate sense of theatrics and the desire to explore uncomfortable themes.

One of his first shows, “Highland Rape,” featured ravaged models in lace dresses, Scottish tartan and provocative tailoring. Its low-cut garments spearheaded a fashion trend that dominated the early noughties. The finale of his 13th show featured a spinning Shalom Harlow in a puffy white dress as two robotic arms from a car manufacturing plant sprayed her with paint in what was one of the first uses of high technology at a fashion show. “Voss,” his most memorable show, ended with a large nude woman covered in live moths, her face obscured by a gas mask. His final collection was beamed to the world in what was fashion’s first Internet livestream.

After the designer’s suicide in 2010, the future of the Alexander McQueen brand was unknown: its DNA wasn’t fully formed, and though its collections were selling, it had not yet become a real commercial success. But Sarah Burton, Lee’s right-hand for 14 years, was able to take the essence of McQueen and imbue it with her own identity, drawing upon the same themes explored by the designer to celebrate craftsmanship and produce flattering clothes, taking the brand to a new level of commercial success, symbolised by the Duchess of Cambridge wearing McQueen for her wedding.

Gianni Versace was a rare fashion genius, too. Christy Turlington, Naomi Campbell, Linda Evangelista and Cindy Crawford walking down a runway lip-syncing to George Michael’s “Freedom! 90″ was one of history’s most iconic fashion moments. The man who orchestrated it? Gianni Versace. He also helped launch the career of actress Elizabeth Hurley and pioneered the concept of celebrity front rows.

“Much of what is considered de rigueur about fashion … [Versace] put his stamp on in his 1990′s glory days — the splashy, expensively made ad campaigns; the star-studded front rows; indeed, the entire fashion-celebrity nexus,” noted Vogue.

Les fournisseurs aéronautiques Mecachrome et WeAre vont fusionner pour donner naissance à un nouvel acteur de 450 millions d'euros de chiffre d'affaires. Une opération soutenue par Tikehau et Bpifrance.

Les entreprises spécialisés dans les pièces aéronautiques et automobiles de précision Mecachrome et WeAre Groupe ont annoncé vendredi 17 décembre vouloir fusionner pour former un ensemble de 3.600 personnes et réalisant un chiffre d'affaires annuel de 450 millions d'euros. "Le projet de rapprochement de ces deux acteurs majeurs du secteur (...) constitue une opération majeure pour la consolidation du marché de l'aéronautique. Il donnera naissance à un groupe français multi-technologies de premier plan dans les secteurs stratégiques de l'aéronautique, du spatial, de la défense et de l'automobile", ont affirmé les entreprises dans un communiqué.

Ce projet est soutenu par la société d'investissement Tikehau Ace Capital et Bpifrance, la banque publique d'investissement, selon ses promoteurs. WeAre, fondé en 2016 et agrégeant plusieurs petites sociétés, est spécialisé dans l'élaboration de pièces de petites dimensions (tournage, fraisage, impression 3D...) et dispose de dix sites industriels en France et en Afrique du Nord. De son côté, Mecachrome, qui se définit comme expert dans "la conception, l'ingénierie, l'usinage et l'assemblage de pièces et d'ensembles de haute précision, destinés aux domaines de l'aéronautique, de l'automobile, du sport automobile, de la défense et de l'énergie", a traversé une période difficile à cause de l'arrêt de l'Airbus A380 et du ralentissement de l'activité aérospatiale à la suite du Covid-19. Il a eu recours à un plan de sauvegarde de l'emploi, allégé en 2020 grâce à un accord d'activité partielle longue durée.

Les termes financiers de ce rapprochement dans la filière aéronautique, un mouvement par ailleurs encouragé par le gouvernement français pour renforcer un écosystème encore très éclaté, n'ont pas été divulgués, ni les éventuelles conséquences en terme d'emploi. Si les négociations en cours aboutissent, le nouveau "champion" ambitionne à terme de réaliser un chiffre d'affaires annuel de 750 millions d'euros, selon le communiqué. Le nouveau Groupe sera dirigé par Christian Cornille, président exécutif, et Pascal Farella, directeur général délégué en charge des opérations.

Avec le néerlandais KLM et l’australien Qantas, l’avionneur européen vient de voler deux clients majeurs à son rival américain. Plus que jamais, la famille A320neo assomme le 737 MAX.

Le premier coup avait déjà fait mal. Le second s’apparente quasiment à un KO. Quelques heures après la sélection des monocouloirs d’Airbus par l’australien Qantas (20 A321XLR, 20 A220, plus 94 options), c’est Air France-KLM, pour ses filiales KLM et Transavia, qui a fait le choix de l’avionneur européen. Le groupe franco-néerlandais a annoncé la commande ferme de 100 A320neo et A321neo, assortie d'une option sur 60 appareils de plus. Il a également commandé huit exemplaires de la toute nouvelle version cargo du long-courrier A350. "Merci Air France- KLM pour cette marque de confiance, a immédiatement tweeté le patron d’Airbus Guillaume Faury. Nous sommes touchés par l'ampleur et la signification profonde de votre choix."

Avec Qantas, KLM et Transavia, ce sont trois fidèles clients de Boeing qui viennent de passer à la concurrence. Les avions commandés par Qantas remplaceront les 737-800 et 717 de la compagnie australienne. Les A320neo de KLM et Transavia se substitueront aux 737 NG des deux compagnies. Après avoir décroché 408 commandes et engagements au salon de Dubaï mi-novembre, Airbus continue ainsi à accumuler les contrats, avec 302 commandes, engagements d’achat et options incluses, en 24 heures. "Airbus se trouve désormais dans une position où il manque de créneaux de livraison – en pleine pandémie !", souligne Addison Schonland, analyste au cabinet américain AirInsight.

Après être passé de 60 à 40 A320 assemblés par mois du fait de la crise sanitaire, l’avionneur européen redécolle de façon spectaculaire. Il est déjà repassé à 45 avions par mois, et vise 63 appareils mensuels au deuxième trimestre 2023, un chiffre supérieur à sa production d’avant-crise. Il envisage même d’atteindre 75 A320 assemblés par mois en 2025, un chiffre inédit qui donne quelques sueurs froides dans une chaîne de fournisseurs qui doit encaisser un stop and go d’une rare violence.

Pourquoi ce double succès face au rival Boeing ? La domination de l’A320 sur le MAX n’est pas nouvelle. Le marché s’est stabilisé depuis quelques années à 60% de part de marché pour Airbus, soit dix points de plus que la moyenne des dix années précédentes. Le double accident du 737 MAX chez Lion Air et Ethiopian a évidemment joué, mais le mal est plus ancien. Boeing n’avait pas cru aux monocouloirs remotorisés en 2010-2011, promettant longtemps un avion 100% nouveau dont personne n’a jamais vu la couleur. Le géant de Chicago, dont l’essentiel des usines se situe dans la région de Seattle, n’avait lancé son MAX qu’après avoir constaté l’incroyable succès commercial de l’A320neo. Trop tard pour rattraper le retard initial, qui n’a fait que se confirmer depuis.

La défaite chez Qantas a une autre explication, complémentaire. La compagnie australienne voulait remplacer à la fois ses 737 et ses petits 717. Airbus était parfaitement placé avec son A320neo sur le haut du segment, et l’A220, ex-CSeries racheté à Bombardier, sur le bas du segment. Boeing, lui, n’avait pas d’offre sérieuse sur ce dernier créneau : le MAX 7, plus petite version du MAX, est considéré comme peu performant par les compagnies, et affiche des commandes faméliques. Cette situation révèle une autre erreur stratégique du géant américain, assure Addison Schonland : la décision de ne pas racheter le brésilien Embraer, qui lui aurait offert une gamme d’appareils (E2) performante et compétitive. "On voit désormais le résultat de cette décision : Boeing ne peut pas offrir une solution basée sur une famille de produits", résume Addison Schonland.

Airbus a également bien joué le coup chez KLM. La compagnie néerlandaise envisageait initialement une commande de 737 MAX 10, la plus grande version de l’appareil de Boeing. L’accord devait même être annoncé au salon du Bourget 2019. L’immobilisation du monocouloir américain, consécutive à son double accident, a eu raison de ce projet. Si Air France-KLM s’est finalement tourné vers Airbus, c’est que l’offre de l’avionneur avait plusieurs avantages : elle permettait de réduire le nombre de types d’appareils différents, en alignant KLM et Transavia sur Air France.

Elle permettait aussi d’accéder à l’A321neo, nouvelle star de la gamme A320neo, qui n’a pas de concurrent crédible chez Boeing. L’appareil, qui sera bientôt décliné en version à très long rayon d’action (A321 XLR), s’est imposé comme le leader incontesté du segment "middle of the market" (MoM). Boeing, qui envisageait un nouvel avion pour lancer la contre-attaque, ne s’est toujours pas décidé. Le groupe américain, très affaibli, n’a plus vraiment les moyens d’un pari à 10 milliards de dollars.

The soccer star will represent the French house’s men’s fashion, designed by men’s creative director Kim Jones, and its male fragrance Sauvage.

Mbappé’s appointment comes after Dior kicked off a two-season collaboration with the Paris Saint-Germain club, where he is the star striker, that saw Jones design the team’s official wardrobe.

The sportsman himself is no stranger to the house, spotted in Dior’s Kaws Bees sweatshirts and denim pieces over the years and favoring its tuxedos for his appearances at the annual Ballon d’Or award ceremony.

He is also a keen sneaker collector and received a pair of the highly coveted and sold-out Air Jordan I High OG Dior as a birthday present from Dior’s artistic director in 2020.

Considered one of the best players in the world, the 22-year-old trained at France’s national soccer excellence center of Clairefontaine and made his professional debut in 2015 with Monaco’s soccer club before moving to Paris Saint-Germain in 2017.

In the space of six years, he has acquired a number of accolades for his skills, including Fifa’s “Best Young Player,” France’s Ligue 1 Young Player of the Year; the Golden Boy award, the most prestigious individual trophy in Europe to a young footballer aged under the age of 21, and the Kopa trophy for best under-21 player worldwide. He was named Ligue 1 Player of the Year twice and finished as the French league’s top scorer for three consecutive seasons.

After making his 2017 debut in the French national team, he also became the second teenager — after soccer legend Pelé — to score in a final, contributing to France’s second title at the 2018 Fifa World Cup.

Last November, he further made sporting history by ensuring France’s ticket to the 2022 World Cup by scoring a quartet of goals during a qualifying match — a first since 1958. He also became the youngest player to ever score 100 goals for a single team in the top French league.

Off the pitch, Mbappé is involved in a number of charity initiatives, sponsoring the “Premiers de Cordée” association, which provides sporting initiatives for hospitalized children and founding “Inspired by KM,” an association which aiming to inspire children to reach their goals. It supports 98 children from all social backgrounds until they enter the workforce.

Mbappé is the latest to sign with Dior as brand ambassador, joining the likes of Pierre Casiraghi, Anna-Taylor Joy, Yara Shahidi, Nina Dobrev, Blackpink’s Jisoo and Iris Law.