altimeter capital letter

GERSTNER: Well, the first thing I would say is this, set aside SPAC. It lost $5.8 billion in the first six months of the year. Their last reported 13F filing for Q4 2022 included $3,652,571,000 in managed 13F securities and a top 10 holdings concentration of 99.95%. As always, happy to connect with you and your team. Meta needs to re-build confidence with investors, employees and the tech community in order to attract, inspire, and retain the best people in the world. As always, happy to connect with you and your team. Grab to list in US via $40 bln merger with Altimeter Growth Think about this, Scott. See the Top Performing Hedge-Funds > Brad Gerstner . The facts are startling. Meta shareholder wants Facebook parent to cut jobs, spending And, while that ultimately is an important long-term measure of success for all of Metas stakeholders, it would be imprudent to make short-term bad decisions just to improve the share price. JavaScript in your web browser. In our view given United's valuable and industry-leading strategic asset base this long-term underperformance directly results from an underqualified, ineffective, complacent, and entrenched Board. We're not in the business of being long or short bonds generally I'd put them on as a hedge against our growth exposure. Can it possibly be worth a trillion? Meta said the cost of the Quest 2 will drop $70 to $429.99, while the price of the higher-end Quest Pro will be slashed to $999.99 from $1,499.99. We have no more confidence that you will act responsibly in the future (even with yesterday's announcement) than we have evidence that you have done so in the past. The Digital Markets Act (DMA) is a groundbreaking European law designed to rein in the power of the gatekeepers of the digital economy. That's the asymmetry. +Includes DocuBay and TimesPrime Membership. On top of that we had supply chain challenges. Southeast Asia's largest ride-hailing company, Grab Holdings, said Tuesday that it plans to merge with U.S.-based Altimeter Growth Capital in a deal that would value it at nearly $40 billion and . Altimeter Capital Management is a technology focused investment firm based in Menlo Park, CA and Boston, MA. He said a 20% cut in employee spending would take Meta back to the levels of staffing it had last year and argued that the company can't spend as it used to since the cost of capital and interest rates have risen recently. March 2013 Protocol ALID: 66704. What Does Metaverse Mean and How Does This Virtual World Work? But I think if you have a time horizon over the course of the one to three years, we see a lot of stocks in our universe that we not only think are going to end the year higher, but we think are going to be multiples higher as we look out over the next two to three years. They just announced that they're going to be profit, full company profitable by 2023. We also reference original research from other reputable publishers where appropriate. The silver lining is that unlike many companies, this popular narrative obscures the truth. And, while most companies will struggle to monetize AI, we believe Meta is incredibly well positioned to leverage AI to make all of its existing products better. Kultura Capital Management is being structured as a hybrid fund that will focus on late-stage tech startups as well as public companies, the person said. Grab Reportedly Set to List in US Via SPAC Merger at $35 Billion Valuation The conventional wisdom press and investor is that the core business hit a wall last fall. We have no stimulus checks. It includes reducing headcount expenses by 20% and limiting the company's pricey investments in "metaverse" technology to no more than $5 billion per year. This is a business it's grown, it's trading at 28 times free cash flow with 20% growth, that will continue to compound. With all of that said, we believe the company can responsibly and reasonably reign in capex while continuing to invest aggressively in AI and other critical areas. I have spent over 20 years investing behind some of the worlds great founders who are helping to invent the technologies that move the world forward. If you have a two-to-three-year time horizon, there is no doubt there are a lot of stocks that are going to be up well over 100% off this bottom. WAPNER: I want to take a look at the stock in "Overtime" here because I think you're moving in I'm looking at what looks to be a higher move as we're having this conversation and that brings me frankly, now to Facebook. Altimeter.com is Altimeter's only website. All quotes delayed a minimum of 15 minutes. Data is a real-time snapshot *Data is delayed at least 15 minutes. The Meta investor recommends a plan to get the company's "mojo back.". Capital October 20, 2022 Risk & Capital. Paul A. Reeder This will alert our moderators to take action. Crowdfunding is the use of small amounts of capital from a large number of people to raise money or fund a business. committed hundreds of millions of dollars to Sequoia Capital, Altimeter Capital Management and Multicoin . WAPNER: I know I know you're not happy about it. It is a poorly kept secret in Silicon Valley that companies ranging from Google to Meta to Twitter to Uber could achieve similar levels of revenue with far fewer people. There isnt a day that goes by where I dont find myself using Metas products to communicate, to connect, and to entertain still amazed at the power of these services. I've got some people including a guy coming up in a little while Mike Wilson who suggested at this point bonds may be a better deal than stocks. You would simply do R&D quietly and investors would focus on the core business and the breakthroughs in AI. "If the company were investing $1-2B per year into this project, then that confusion might not even be a problem.". Grab's SPAC Vehicle Altimeter Near Record Low After 28% Dive Altimeter Capital's Brad Gerstner Issues Open Letter to Meta (NASDAQ: META) and Mark Zuckerberg. ", Medium.com. Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time. I expected that as the world of normalized post Omicron that we would get back to the five-year average multiple. It's a better version of Messenger. An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards. It makes no sense to me, but that is the risk that you run. We understand that the Protocol is designed to amend only those Protocol Covered Agreements between two Adhering Parties that were previously amended pursuant to the terms of the August 2012 Protocol, the March 2013 Protocol or both. At the end of the second. Sign Up. In fact, we distributed over $6 billion worth of Snowflake to our venture investors last year. Australian Gold & Copper Ltd. - MarketWatch 2023 CNBC LLC. . The stock is 51% off of its high. As always, we welcome the opportunity to engage in further discussions focused on this shared objective. Gordon Bethune, former CEO of Continental Airlines; board member of Honeywell, Prudential Financial, and Sprint; I said IDFA which is the Apple changes right? Altimeter SPAC Has Reported $40 Billion Deal for Ride-Hail Company Grab The company explained that its goal has always been to "create hardware that's affordable for as many people as possible to take advantage of all that VR has to offer." Altimeter Capital's Brad Gerstner Issues Open Letter to Meta (META) and Altimeter Capital Chair and CEO Brad Gerstner said in an open letter to the company and CEO Mark Zuckerberg on Monday that Meta has too many employees and is moving too slowly to retain the confidence of investors. Altimeter. I don't think there's any chance that the Fed is going to raise rates 10 times this year. GERSTNER: Without a doubt the single biggest lever on growth multiples is rates. ISDA is a registered trademark of the International Swaps and Derivatives Association, Inc. It can compound its earnings and this that and the other but I need to know can it get back to that level. As I look at it, the market is now pricing in at least seven rate hikes. Altimeter Capital Management LP Top Holdings 13F Filings Altimeter and PAR believe these experienced professionals can bring meaningful experience, objective oversight, and powerful change to United. Benchmark Reform and Transition from LIBOR InfoHub, Use of Chinese Government Bonds as Margin, Updated OTC Derivatives Compliance Calendar, ISDA-Clarus RFR Adoption Indicator: January 2023. Sign up for free newsletters and get more CNBC delivered to your inbox. After the pandemic, hospitals are now on a strong footing. But the fact of the matter is the entire market has evaporated around these types of stocks. c/o Chairman Henry L. Meyer III The deal values the combined company at $35 billion and will. Altimeter Capital owns about 2.46 million Meta shares. Metas core business is one of the largest and most profitable in the world with over $45 B in operating profits last year alone. We believe the future lies in AI. This Supreme Court Case Could Redefine Crime, YellowstoneBackers Wanted to Cash OutThen the Streaming Bubble Burst, How Countries Leading on Early Years of Child Care Get It Right, Female Execs Are Exhausted, Frustrated and Heading for the Exits, More Iranian Schoolgirls Sickened in Suspected Poisoning Wave, No Major Offer Expected on Childcare in UK Budget, Oil Investors Get $128 Billion Handout as Doubts Grow About Fossil Fuels, Climate Change Is Launching a MutantSeed Space Race, This Former Factory Is Now New Taipeis Edgiest Project, What Do You Want to See in a Covid Memorial? ALTIMETER CAPITAL MANAGEMENT, LP Top 13F Holdings - WhaleWisdom.com How many dogs want to eat the dog food? 9/29/2022 1:05 AM. Dave Baszucki of Roblox describes the metaverse as the natural evolution of communication a multi-device world, including the phone, that is best thought of as a better version of text, video, and voice that will make us feel more connected. Kevin Wang - Forbes We believe the future lies in AI. Hedge Fund Manager. 2023 Benzinga.com. Its competitor or not its competitor, its closest comp in Southeast Asia Sea Limited is also down over 70%. In the back half, you've already lapped IDFA, in the back half of this year, the supply chain issues begin to ameliorate. The vast majority of the capex has been an essential and high-returning investment in data centers, Nvidia GPUs and other AI resources to solidify the companys position as one of worlds leaders in AI. Brad Gerstner - Founder & CEO @ Altimeter Capital - Crunchbase And Meta certainly has abundant financial resources to invest and / or return to shareholders. HONG KONG (AP) Southeast Asia's largest ride-hailing company, Grab Holdings, said Tuesday that it plans to merge with U.S.-based Altimeter Growth Capital in a deal that would value it at . At first glance, the rules of English capitalization seem simple. Altimeter Capital Management LP Info Size ($ in 1000's) At 12/31/2022: $3,652,571 At 09/30/2022: $4,676,285 Altimeter Capital Management LP holdings changes, total fund size, and other information presented on HoldingsChannel.com was derived from Altimeter Capital Management LP 13F filings. We do not take job reductions lightly. We simply wanted to further engage and continue sharing our thoughts as an interested shareholder. It's our largest position in the book. Moreover, I am a strong supporter of founder-led companies especially when they have your successful track record of seeing the future. Meta didn't immediately respond to a request for comment. This is a business it's trading at 12 times free cash flow, X the meta investment and 18 times including. Right? I think you're gonna see monetization gains against IDFA and either way we lap that issue in Q3 and Q4. Altimeter Capital Company Profile | Management and Employees List While the increased AI investment was clearly well timed, Metas investment in the metaverse, while smaller than the AI investment, has gotten the most attention and has led to much confusion. He defied expectations and made profits on Priceline, Expedia, Uber, Twilio, and Hubspot. These are not numbers on a spreadsheet. The purpose of this letter is to confirm our adherence as a Protocol Participant to the ISDA 2021 SBS Top-Up Protocol Agreement as published by the International Swaps and Derivatives Association, Inc. on February 25, 2021 (the Protocol Agreement). Reels, which is a massive product is going to increase its monetization between now and the end of the year. Copyright 2023 Bennett, Coleman & Co. Ltd. All rights reserved. To put that in perspective, excluding your large metaverse investment, Meta is investing more in capex than Apple, Tesla, Twitter, Snap, and Uber combined! Of course, a company that connects nearly three billion users on phone and text must be investing in the next generation of communication. Whether it is making Whatsapp more seamless or making content and ads more useful on Instagram, Reels and Facebook AI is a globally scarce resource that already is driving noticeable improvements for Metas three billion customers and advertisers. WAPNER: Speaking of going higher up, you see what interest rates are doing today after sitting in a tight spot, they've started to move to 11. WAPNER: So let me talk about your overall exposure if I if I could because by last December, you had said you had taken most of your your shorts off and your long exposure was back up to 70%. Altimeter Capital Management is an investment firm with offices in Menlo Park, CA, and Boston, MA. Brad Gerstner From Grand Teton to Universal Speech Translator to Make-A-Video, we are witnessing a Cambrian moment in AI, and Meta is no doubt well positioned to help invent and monetize that future. I can't tell you what's going to happen the next three days or the next three weeks or even three months. Brad Gerstner founded the. If you click the "Accept" button, you consent to the use of cookies on our website. These include white papers, government data, original reporting, and interviews with industry experts. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. We do not take job reductions lightly. GERSTNER: Right, it comes down fundamentally to a question Scott of whether you think we're gonna have more than eight rate increases or less. It takes effect in 2023. The cumulative benefit of the recommended adjustments outlined above would increase FCF by at least $20B in 2023 ($10B from people-related expense reduction, $5B from capex reduction, and $5B from reduced metaverse spend). Meta shareholder Altimeter urges Facebook parent to cut down jobs, expenses Chase Coleman's: Tiger Global Management. effective risk management for all users of derivative products. Hedge Fund - Altimeter Capital Management - Insider Monkey Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. They're fearful about what's going to happen with rates. This compensation may impact how and where listings appear. Mar 11, 2021 3:07 PM EST. So I think they got to match the investment to the revenue growth of the business. GERSTNER: Right Scott so that you know I started off by saying you know we've been beaten up this year like everybody else because I was covering shorts as we approach the five-year average. WAPNER: I hear you. Please refer to the section on cookies in our Website Privacy Policy Data is a real-time snapshot *Data is delayed at least 15 minutes. 16,839 Followers. He also asked Zuckerberg to cut down on capex and employee expenses. Altimeter Capital - Portfolio - Index Usually you don't capitalize after a colon, but there are exceptions. David Einhorn's: Greenlight Capital. Ultimately, Gerstner said, Meta has too many people and is spending too much on capital expenditures. As you know, we have attempted to work collaboratively with the current Board to meaningfully improve governance, Board composition, and oversight. In addition, people are confused by what the metaverse even means. Form of Letter Agreement between the Registrant, the Sponsor and each director and executive officer of the Registrant. "An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards," Gerstner wrote. Altimeter Capital Management LP now owns 2,850,000 shares of the Internet company based in Singapore's stock worth $131,784,000 after purchasing an additional 1,600,000 shares during the last quarter. Chief Executive Officer Brad, thank you. As you know, we are long-term shareholders. Facebook's revenues in Q1 were lower than people expected. It's my job to ask you about it knowing you're not happy about it and you answered the question. CAPEX Investing Aggressively and Responsibly in the Future of AI. Altimeter Capital Management, - GuruFocus.com Altimeter said annual free cash flow can be doubled to $40 billion (roughly Rs. Brad Gerstner's Altimeter Capital Management has between $300 million and $400 million in assets under management, and invests almost exclusively in the services sector. Learn the pros and cons of crowdfunding. We are generally patient investors. They are people with families and kids to support. That could in fact become a tailwind as we get to the back half of the year. Dont miss out on ET Prime stories! What's going to be the inflation print in April? Like many other companies in a zero rate world Meta has drifted into the land of excess too many people, too many ideas, too little urgency. I have been told that Amazon spent far less in total to build AWS. To put that in perspective, it merely takes the company back to mid-2021 levels of employee expense and I dont think anybody would argue that Meta wasnt sufficiently staffed in 2021 to tackle a business that looks similar to how it looks today. 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To accomplish this goal, we recommend a three step plan that will double FCF to $40 B per year and focus the companys teams and investments: Reduce headcount expense by at least 20%;Reduce annual capex by at least $5 B from $30B to $25B; andLimit investment in metaverse / Reality Labs to no more than $5B per year.

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