Altimeter Growth Corp. raised $450 million in an October 2020 IPO. 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. We agree to pay a one-time fee of $500 to ISDA at or before the submission of this Adherence Letter. Despite public skepticism at times warranted we have been supporters of the companys strategy to continuously reinvest in a product-led future and its mission to make the world more open and connected. Meta and other large companies have made it very difficult for start-ups to hire. I don't think Mark did a particularly good job of explaining the meta investments. Ultimately, we and the Board necessarily must share the same objective: maximizing long-term value creation for United's stockholders, customers, and employees. 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. 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. Remember last year they gave a guide at the beginning of the year they're going to grow at 80%. In a single quarter, they added 1.4 billion. 2023 CNBC LLC. 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). But you also (sometimes) capitalize the first word of a quote. So no, these issues are rea,l what's going on in Russia is real, what's going on in Europe is real. Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more! Social networking is the use of internet-based social media platforms to make connections and share various media with friends, family, colleagues, or customers. 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. Altimeter Capital owns approximately 0.11% of Meta. I think that this is a business that is investing in the right things. The Wall Street Journal reported on Thursday that Grab was in talks with Altimeter. 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%. Time to Get Fit an Open Letter from Altimeter to Mark Zuckerberg (and the Meta Board of Directors) | by Brad Gerstner @altcap | Medium 500 Apologies, but something went wrong on our end.. Altimeter manages a long / short public equity fund and private growth equity funds. They may never get back to the levels at which they traded before. 9/29/2022 1:05 AM. A letter addressed to Zuckerberg and the board of directors was published on Oct. 24. SCOTT WAPNER: Now let's move to an exclusive interview with a marquee investor who saw the destruction in tech coming, Altimeter Capital's founder and CEO Brad Gerstner. United Continental Holdings, Inc. Altimeter Capital's Brad Gerstner Issues Open Letter to Meta (META) and Mark Zuckerberg Article Related Articles ( 4) Stock Quotes (1) October 24, 2022 8:20 AM EDT Tweet Share E-mail Get. GERSTNER: Well, the first thing I would say is this, set aside SPAC. will trigger a new window or tab to open. WAPNER: We're back now with Altimeter Capital's Brad Gerstner hanging out with us at "Overtime" today, You know, we talked about the magnitude Brad by which some of these stocks have come down and I'm looking at the, listen, it's not just Meta, obviously. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, This Week in Crypto: Ukraine War, Marathon Digital, FTX. Altimeter Capital owns about 2.46 million Meta shares. I think the only debate is what is the multiple going to be in three months, in six months, in nine months. Right? As such, we think Meta company should cap its metaverse investments to no more than $5B per year with more discrete targets and measures of success, as opposed to todays much more ambitious and open-ended strategy. Contact. Altimeter Capital Management is an investment firm with offices in Menlo Park, CA, and Boston, MA. Dont miss out on ET Prime stories! If you click the "Accept" button, you consent to the use of cookies on our website. Focusing the Metaverse: the Next Generation of Communication and Collaboration. Nobody debates whether or not this company is going to be more valuable in the future. 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. And notably, this decline in share price mirrors the lost confidence in the company, not just the bad mood of the market. Sincerely, 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. I would take it a step further and argue that these incredible companies would run even better and more efficiently without the layers and lethargy that comes with this extreme rate of employee expansion. This heavy equipment maker is a good buy on dips stock; heres why, Tears from smokeless cooking gas as consumers continue to bear price hikes on top of subsidy cuts. Altimeter Capital Management partner Chris Conforti plans to leave the investment firm, according to people with knowledge of the matter. browser. Credit Derivatives Determinations Committees, how to enable Prior to Octahedron, Ram was a partner and portfolio manager at Altimeter Capital, a multi-billion dollar investment firm . I hear you but look, there are, there are some people who think and it's not maybe it's not a Snowflake, but it's a you know, a basket of these kinds of names that may never get back. At Meta, the number of employees is up over 3x from 25k to 85k employees in just the last four years! The company has lost investor confidence as it ramped up spending and pivoted to the metaverse, the technology-focused hedge fund with a 0.1% stake said, and suggested a three-step plan. What is the connection between those three companies. . Altimeter. I think we spent about an hour together. Today, the cost of capital has radically changed, and so has Metas growth rate. I'm not a seller. WAPNER: Okay, that's a that's a big a bold call. "Meta Reports Fourth Quarter and Full Year 2022 Results," Page 10. Brad Gerstner's Phone Number and Email Last Update. And I've let the company know that, right? But I am confident these companies like Snowflake, like Uber, like Facebook are going to be worth more than they are today at significantly more if you look out two years. Ultimately, Gerstner said, Meta has too many people and is spending too much on capital expenditures. I don't think the Fed is going to throw away two years' worth of work to try to avoid a recession in a election year and run us straight into the teeth of a recession while we're trying to fight a war in Europe. In the back half, you don't have those same comp issues that you have caused by COVID. b***@altimeter.com. Altimeter Capital Management LP. Ranked #76 out of 483 Hedge Fund Managers. Rapid mobile adoption helped market leaders blaze through the s-curve with astounding growth rates and a historically low cost of capital made investments in people and things the rational economic decision. An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards. . The Meta investor recommends a plan to get the company's "mojo back.". The firm's private equity arm makes all-stage venture capital investments, primarily in the technology sector. 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: Getting Fit Headcount Reduction / Expense Control. Email. At the same time that Meta ramped up spend, you lost the confidence of investors. But what is the right amount? Of course, a company that connects nearly three billion users on phone and text must be investing in the next generation of communication. Altimeter Capital Management LP lifted its position in shares of SEA by 128.0% during the first quarter. Whatever the reason, that is certainly the perception. With all of this said, we truly believe that the company should be making some of these important investments. We think both of those are solvable. Meta. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. But the fact of the matter is the entire market has evaporated around these types of stocks. A Division of NBCUniversal. Link to 13F filings: SEC filings Meta has also been feeling pressure to improve the finances of its Reality Labs, the company's metaverseunit, which includes the VR headsets. Mark Zuckerberg is a self-made billionaire and the CEO of Meta (formerly Facebook), which he co-founded in his dorm room in 2004. Despite public skepticism at times warranted we have been supporters of the companys strategy to continuously reinvest in a product-led future and its mission to make the world more open and connected. NEW YORK, Nov. 16, 2021 (GLOBE NEWSWIRE) -- H1, which provides the largest global healthcare network that connects healthcare professionals, announced today that it has raised a $100M Series C. Open letter: Altimeter Capital founder and CEO Brad Gerstner encourages Meta to cut capex by $5B+, cut headcount by 20%+, and limit metaverse R&D to $5B/year As you know, we are long-term shareholders. BRAD GERSTNER: Hey, Scott, thanks for having me. We didn't think that was durable. Brad Gerstner, Altimeter's chair who encouraged aggressive investment in artificial intelligence, said the firm wanted to engage with Meta and did not have any demands. You know how to time markets. It can do that by making. WAPNER: Let me lastly ask you about Grab, the SPAC deal you did, biggest SPAC deal ever of $40 billion. In an open letter to CEO Mark Zuckerberg on Monday, shareholder Altimeter Capital Management urged Meta Platforms Inc., the parent company of Facebook, to streamline by eliminating positions and capital expenditures. PLAN, Access the exclusive Economic Times stories, Editorial and Expert opinion, 90 Days Prime access worth Rs999 unlocked for you, Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors, Stock analysis. In the letter, Gerstner said Altimeter Capital doesn't have demands and simply wants to engage with Meta management. Protocol: In fact, our internet stock index is at a 10-year low and software is back nearly where we were in 2016 before the rerating of software occurred. That could in fact become a tailwind as we get to the back half of the year. So, it doesn't surprise me at all that buyers are on the sidelines and that sellers and short sellers are having a field day with stocks. And I think they have to execute against the underlying operations in the business. Do they want to stand with me and ride that out? We know Meta has more reach, more relevance, and more incredible opportunities for growth than almost any platform on the planet. We do not take job reductions lightly. Investopedia requires writers to use primary sources to support their work. If they just take the incremental cash they're going to generate this year and buy back shares that's 6% of the company Scott, let alone the 50 billion in cash they have sitting on the balance sheet. Congrats on the new show. At $20-$25B of annual capex, Meta will still be investing market leading amounts to help invent the future of AI. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. 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. So, its with some hesitation, but significant conviction, I am sharing an open letter strongly encouraging Meta to streamline and focus its path forward. An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards. GERSTNER: Scott, I love that you asked the question. And we are confident that your long-term investments in AI and the next generation of communications will continue to drive us all forward. Unlock your 30 days free access to ETPrime now. Conclusion A Leaner, Faster, More Successful Meta. GERSTNER: So let's talk for a second about what I called. Brad Gerstner, Founder and CEO of Altimeter Capital; former board member of Orbitz Worldwide; He argued that this was "one of the big reasons behind these price cuts.". Adani Group on Thursday said US-based boutique investment firm GQG Partners has picked up equity stakes worth $1.87 billion (15,446 crore) in four listed group companies Adani Ports and Special Economic Zone, Adani Green Energy, Adani Transmission and flagship Adani Enterprises via secondary share sales. This is a business it's grown, it's trading at 28 times free cash flow with 20% growth, that will continue to compound. Industry Trends on 4000+ Stocks, Pro Investing by Aditya Birla Sun Life Mutual Fund, Canara Robeco Equity Hybrid Fund Direct-Growth, Cut workforce, spending on metaverse, key investor tells Mark Zuckerberg. AGCUU went public at $10 on Oct. 1, and closed Tuesday at $11.80. I think they have to take a look at their capital allocation plan. So if you want to bet on the future of growth, Southeast Asia is one of the places you want to bet this is one of the dominant brands, dominant internet platforms, and it's got 7 billion of cash on the balance sheet. These are not numbers on a spreadsheet. I have deep respect and admiration for founders that continue to grind, inspire, and invent long after the financial motivation is gone. We have not made this difficult decision lightly, but after thorough, serious, and objective analysis, we feel compelled to act. Altimeter is focused on technology investment, and has found multi-billion-dollar success. Rates are going up and we have a war. I just happen to look at a Snowflake it's in front of me and because it's your largest position, I say can Snowflake really get back to its 52-week high of $405 a share. It makes no sense to me, but that is the risk that you run. WAPNER: I hear you. It has 24 billion in free cash they're going to generate this year. All Rights Reserved. March 8, 2016 PLAN, Yearly They are people with families and kids to support. So we've taken up our exposure, we've consolidated behind our five or six best ideas, we don't run leverage and so the bet for our LPs, I'm the largest LP in the fund. Meta has spent billions and hired thousands of employees around the world to build the metaverse, which refers to a shared digital environment that uses augmented or virtual reality technology to make it feel more realistic. 10. Portfolio Gain +273.45%. It's a better version of Messenger. He defied expectations and made profits on Priceline, Expedia, Uber, Twilio, and Hubspot. Regrettably, our efforts have led to our complete loss of confidence in the current Board, and to our firm determination that meaningful, stockholder-directed Board change is urgently required to serve the long-term best interests of United's stockholders, customers, and employees. This company is perfectly positioned to capitalize on that they have the, the ad network to monetize it. Instead, the company has announced investments of $1015B per year into a metaverse project that largely includes AR / VR / immersive 3D / Horizon World and that it may take 10 years to yield results. Meta can get its mojo back, says Brad Gerstner, but it will have to take some hard decisions first. We want to hear from you. Amazon Is Closing Its Cashierless Stores in NYC, San Francisco and Seattle, Amazon Pauses Construction on Second Headquarters in Virginia as It Cuts Jobs, Stock Traders Are Ignoring Blaring Bond Alarms, iPhone Maker Plans $700 Million India Plant in Shift From China, Russia Is Getting Around Sanctions to Secure Supply of Key Chips for War. No matter how a company came public in 2021, let alone December of 2021, right, they've been obliterated. Can it possibly be worth 100 billion? GERSTNER: Scott, thanks for having me. If the company were investing $12B per year into this project, then that confusion might not even be a problem. Altimeter said annual free cash flow can be doubled to $40 billion (roughly Rs. About Kevin Wang. Learn the pros and cons of crowdfunding. It's 3 trillion, right? He said the money the company is currently spending to develop VR could add up for a decade before it comes to fruition. Hedge Fund Manager. Brad Gerstner FTX, once the third-largest centralized cryptocurrency exchange, is now in U.S. bankruptcy. To experience the full functionality of the ISDA website, it is necessary to enable Javascript in your I mean, we're talking about billions of dollars in revenue but you left that out. Last fall, Brad Gerstner from Altimeter Capital published an open letter, telling Meta it has "lost the confidence of investors" and telling the company to throw in the towel on its metaverse project. Over the last three years, Meta has also dramatically increased its capital expenses. Altimeter Capital owns about 2.46 million Meta shares. Its founder faces criminal and civil charges and goes to trial in October. SPACs notched more than $70 billion so far in 2021, a new record. It's my job to ask you about it knowing you're not happy about it and you answered the question. Usually you don't capitalize after a colon, but there are exceptions.

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