altimeter capital letter

This is a company that only did 1.2 billion in revenue last year. Subject: Meaningful Board Change Required Moreover, I am a strong supporter of founder-led companies especially when they have your successful track record of seeing the future. Email. 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. With all of this said, we truly believe that the company should be making some of these important investments. Digital Markets Act (DMA): How the EU Law Will Work, Mark Zuckerberg: Founder and CEO of Meta (formerly Facebook), Crowdfunding: What It Is, How It Works, Popular Websites, FTX: An Overview of the Exchange and Its Collapse, New Prices for Meta Quest 2s 256GB SKU + Meta Quest Pro, Time to Get Fit an Open Letter from Altimeter to Mark Zuckerberg (and the Meta Board of Directors), Meta Reports Fourth Quarter and Full Year 2022 Results. Our Standards: The Thomson Reuters Trust Principles. These are not numbers on a spreadsheet. 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. So were Shopify's and so were PayPal. Link to 13F filings: SEC filings "In short, Meta needs to get fit and focused.". Grab Reportedly Set to List in US Via SPAC Merger at $35 Billion Valuation Login 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). 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. To put that in perspective, excluding your large metaverse investment, Meta is investing more in capex than Apple, Tesla, Twitter, Snap, and Uber combined! Meta layoffs 2022: Cut workforce, spending on metaverse, key investor The silver lining is that unlike many companies, this popular narrative obscures the truth. The facts are startling. "New Prices for Meta Quest 2s 256GB SKU + Meta Quest Pro. We dont have any demands. Look at another one that I know is in your book or at least it was Roblox is down 74% from its 52-week high. Altimeter Capital. We believe in this team. Comprender el funcionamiento social, poltico, econmico, cultural y natural de la sociedad a fin de reflexionar, hacer propuestas y asumir compromiso en torno a las polticas de desarrollo nacional, local y regional en el mbito del respeto de los derechos humanos, la integracin econmica y la convivencia social, bajo una concepcin de desarrollo humano sostenible. We are generally patient investors. Get this delivered to your inbox, and more info about our products and services. Do they want to stand with me and ride that out? 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. The Meta investor recommended a plan to get the company's "mojo back," including reducing headcount expenses by 20% and limiting the company's pricey investments in "metaverse" technology VR software and hardware to no more than $5 billion per year. The technology-focused hedge fund with a 0.1% ownership claimed that the company had lost investor confidence as it increased . Got a confidential news tip? Following is a link to video on CNBC.com: https://www.cnbc.com/video/2022/03/14/we-could-go-lower-before-we-go-higher-in-stocks-says-altimeter-capitalas-ceo-brad-gerstner.html. Crowdfunding is the use of small amounts of capital from a large number of people to raise money or fund a business. This is a business it's grown, it's trading at 28 times free cash flow with 20% growth, that will continue to compound. Altimeter said annual free cash flow can be doubled to $40 billion if it cut headcount by at least 20%, trimmed capital expenditure by at least $5 billion to $25 billion a year and capped annual investment in the metaverse to $5 billion instead of the current $10 billion. 16,839 Followers. The bet . For reprint rights: Continue reading with one of these options: Login to get access to some exclusive stories, Get access to exclusive stories, expert opinions &, Valid only with UPI, Credit & Debit Cards Autopay, Inciting hatred against a certain community, 15 All Rights Reserved. +Includes DocuBay and TimesPrime Membership. The move comes amid a decline in Meta's VR shipments and pressure from activist shareholders to improve the financial picture of its metaverse division. . What is the connection between those three companies. 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. It's a better version of Zoom. 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. As you know, we are long-term shareholders. If the company were investing $12B per year into this project, then that confusion might not even be a problem. Sign Up. We have no stimulus checks. Data is a real-time snapshot *Data is delayed at least 15 minutes. Usually you don't capitalize after a colon, but there are exceptions. 3. 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. That could in fact become a tailwind as we get to the back half of the year. Sea Limited (NYSE:SE) Shares Bought by Capital International Ltd. CA Hedge Fund - Altimeter Capital Management - Insider Monkey At the start of COVID on March 26th when I felt about like I do today, growth stocks were under assault. Drew Angerer | Getty Images News | Getty Images, Meta needs to focus on its core business, not the Metaverse, says Sand Hill's Brenda Vingiello. I think we spent about an hour together. TEORIA ECONOMICA Y SOCIOPOLITICA DESCRIPTORES MNIMOS.pdf We also reference original research from other reputable publishers where appropriate. We were about 30% to 40% depending upon which basket you looked at software internet above the five-year average. Altimeter Capital owns approximately 0.11% of Meta. So take Snowflake as an example. And so that will be rolled out in Q2 and Q3. Perhaps it was the re-naming of the company to Meta that caused the world to conclude that you were spending 100% of your time on Reality Labs instead of AI or the core business. 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. In Q1 of 2021, everybody was sitting on their couch. Right if the Fed raises rates 10 or 12 times given the demand destruction and the slowdown already underway in this country, we will be in a big recession come fall. To set a new and better course for the Company, and to give United stockholders the opportunity to elect the Board they deserve, Altimeter has delivered to you a notice today indicating its intention to nominate six highly qualified professionals led by former Continental Airlines CEO Gordon Bethune to the United Board at the 2016 annual stockholder meeting. United Continental Holdings, Inc. You can learn more about the standards we follow in producing accurate, unbiased content in our. . Those three companies are all down that amount because it turns out that this year people got off their couch, they went out and they went to restaurants and they went in and did things instead of buy things. QUARTERLY LETTER 2022 | Vol.1 1345 AVENUE OF THE AMERICA S 33RDFLOOR NEW YORK, NY 10105 HAYDENCAPITAL.COM HAYDEN CAPITAL 2 May 20, 2022 Dear Partners and Friends, The last six months have been extremely painful - by far, the worst period since we started Hayden. That's because enterprises love their product. These include white papers, government data, original reporting, and interviews with industry experts. Get this delivered to your inbox, and more info about our products and services. Copyright 2023 Bennett, Coleman & Co. Ltd. All rights reserved. Social networking is the use of internet-based social media platforms to make connections and share various media with friends, family, colleagues, or customers. In the last 18 months, Meta stock is down 55% (compared to an average of 19% for its big-tech peers). Why didn't you buy, you know, Uber at 28 bucks a share? Days Trial And so for us, it's about simplification, reduction of gross and making sure that you consolidate that what you own into your highest conviction ideas whether you're playing at home in your 401k or whether you're doing this professionally. I can't tell you what's going to happen the next three days or the next three weeks or even three months. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. There are a lot of companies with speculative business models, right, that are should have never been valued where they were valued and if you don't have absolute conviction, right, they can grow their product, grow their top line and grow their earnings to match where those earlier prices were, then you need to rotate those dollars out of those companies and into companies where you have that level of conviction. And for us, we consolidate behind the things we have deep conviction in with confidence they're going to be worth more in the future. It can do that by making. Even excluding its large metaverse investment, Meta has gone from $15B in annual capex in 2018, 2019, and 2020 to $30B in annual capex in 2022. Reels, which is a massive product is going to increase its monetization between now and the end of the year. Altimeter Capital Management LP. FREE Breaking News Alerts from StreetInsider.com! And as a result, you know, last year we held up better than most because we own high-quality stocks, and we were short lower quality stocks. They're fearful about what's going to happen with rates. Grab Holdings is reportedly in talks to go public through a merger with a "blank check" company that could value the Southeast Asian ride-hailing startup at as much as . Worse, this skepticism seemed to be affirmed with a nearly-immediate and sizable miss in financial results and continued under-performance throughout 2022. WAPNER: Okay, that's a that's a big a bold call. When you were with me in December, you said that you had picked some more of that up along with Snowflake. As such, we think during this period of growth transition and economic uncertainty, the company should decrease capex by at least $5B and maintain this discipline until revenues re-accelerate bringing our capex as a percentage of revenue more in line with our large cap peers. The average tech IPOs down almost 50% from last year, SPACs much worse, direct list bad, all stocks that were taken public last year now it's clear were overvalued relative to where the world is trading them today. We believe the future lies in AI. Days Trial. ISDA fosters safe and efficient derivatives markets to facilitate effective risk management for all users of derivative products. Altimeter Capital's Brad Gerstner Issues Open Letter to Meta (META) and But you also (sometimes) capitalize the first word of a quote. At the same time that Meta ramped up spend, you lost the confidence of investors. effective risk management for all users of derivative products. We simply wanted to further engage and continue sharing our thoughts as an interested shareholder. What is the metaverse and why are billions of dollars being spent on it? And then take that part of the world. Meta shares moved 6% higher following the announcement. Experience Your Economic Times Newspaper, The Digital Way! And notably, this decline in share price mirrors the lost confidence in the company, not just the bad mood of the market. 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. Altimeter Capital owns about 2.46 million Meta shares. Altimeter Capital Chair and CEO Brad Gerstner, in an open letter to the company, said Meta has too many employees and is moving too slowly to retain the confidence of investors. Search ISDA ISDA fosters safe and efficient derivatives markets to facilitate effective risk . But it's good to be here and and you know, while I think we we did see the normalization and multiples as a likely outcome toward the end of last year. And now we've shot right through the five-year average. So I am very unhappy because I've lost money on the deal. As a result, the team hastily pivoted the company toward the metaverse including a surprise re-naming of the company to Meta. GERSTNER: So let's talk for a second about what I called. 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. I think you're gonna see monetization gains against IDFA and either way we lap that issue in Q3 and Q4. If Meta was able to control those costs, he said, then it could double its free cash flow and improve its share price. Activist investor Brad Gerstner, founder and CEO of tech-focused hedge fund Altimeter Capital, sent an open letter to CEO Mark Zuckerberg in October calling for a pullback in metaverse spending. The changes for the Quest 2 begin Sunday, March 5. Altimeter Capital Management, ISDA 2021 SBS Top-Up Protocol - Adherence. Nov. 16, 2021 at 2:38 p.m. This would double annual FCF and put FCF as a percentage of revenue more in line with Google, Microsoft, and Apple. FTX's Bankman-Fried Quietly Invested More than $500 Million in Sequoia I don't think there's any chance that the Fed is going to raise rates 10 times this year. David Einhorn's: Greenlight Capital. "Jitesh Ubrani: Tweet From March 3, 2023. This is expected to facilitate trade as the West ratchets up sanctions on Russia. And Meta certainly has abundant financial resources to invest and / or return to shareholders. Altimeter LLC. Skip to main content. If the company were investing $12B per year into this project, then that confusion might not even be a problem. 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. 233 South Wacker Drive Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Altimeter Growth Corp. 2 raised $400 million in a January IPO. 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. Gordon Bethune, former CEO of Continental Airlines; board member of Honeywell, Prudential Financial, and Sprint; Meta reported in February that Reality Labs lost $13.72 billion in 2022. Meta Slashes Prices for VR Headsets WAPNER: I hear you. An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards. It added that VR is "a powerful social platform and creative technology, and the more people with access to it, the better. This company is perfectly positioned to capitalize on that they have the, the ad network to monetize it. 9/29/2022 1:05 AM. FTX's list of investors spans powerful and well-known investment firms: NEA, IVP, Iconiq Capital, Third Point Ventures, Tiger Global, Altimeter Capital Management, Lux Capital, Mayfield,. We have $130 oil and $6 gas at the pump. We have little doubt investors and others would happily support scaling up these investments as the ROI becomes more tangible even if still long-term. I have been told that Amazon spent far less in total to build AWS. The offers that appear in this table are from partnerships from which Investopedia receives compensation. A securities lawyer, Brad Gerstner graduated from HBS in 2000 and joined General Catalyst. And I appreciate you being with me on the very first "Overtime" show. CNBC Exclusive: CNBC Transcript: Altimeter Capital Founder & CEO Brad About Altimeter Capital Altimeter is a leading technology focused investment firm based in Silicon Valley with over $15 billion in assets from endowments, foundations, and family offices. Altimeter Capital Management partner Chris Conforti plans to leave the investment firm, according to people with knowledge of the matter. What is the Fed going to do? 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. GERSTNER: Scott, I love that you asked the question. Altimeter said annual free cash flow can be doubled to $40 billion if it cut headcount by at least 20%, trimmed capital expenditure by at least $5 billion to $25 billion a year and capped. Brad Gerstner Wiki: Facts about the CEO OF Altimeter Capital As you know we entered the year with a big bond short, we've now covered that bond short because we don't think that it's possible for the Fed to raise rates 7,10, 12 times as some people think this year. Can they maintain their growth momentum? Altimeter's nominees are: Conclusion A Leaner, Faster, More Successful Meta. If you really think about what the metaverse is in the first instance, it's a better version of what you and I are doing right here. 2550 Sand Hill Road, Suite 150. In a single quarter, they added 1.4 billion. 15 Following is the unofficial transcript of a CNBC exclusive interview with Altimeter Capital Founder & CEO Brad Gerstner on CNBC's "Closing Bell: Overtime" (M-F, 4PM-5PM ET) today, Monday, March 14th for the premiere. At Meta, the number of employees is up over 3x from 25k to 85k employees in just the last four years! I have deep respect and admiration for founders that continue to grind, inspire, and invent long after the financial motivation is gone. I expected that as the world of normalized post Omicron that we would get back to the five-year average multiple.