altimeter capital letter

Bruce Berkowitz's: Fairholme Capital Management. You got a lot of this right but multiples have come down a heck of a lot to this point. Neither Altimeter, nor any of its affiliates or personnel, offers investment advisory services via the internet. At Meta, the number of employees is up over 3x from 25k to 85k employees in just the last four years! Welcome to "Overtime.". Dont miss out on ET Prime stories! Ranked #76 out of 483 Hedge Fund Managers. At $20-$25B of annual capex, Meta will still be investing market leading amounts to help invent the future of AI. 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. Grab to list in US via $40 bln merger with Altimeter Growth Australian Gold & Copper Ltd. - MarketWatch FTX, once the third-largest centralized cryptocurrency exchange, is now in U.S. bankruptcy. They may never get back to the levels at which they traded before. 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. Social networking is the use of internet-based social media platforms to make connections and share various media with friends, family, colleagues, or customers. Copyright 2023 Bennett, Coleman & Co. Ltd. All rights reserved. Altimeter Feb 2021 - Present2 years 2 months New York, United States Chris is a Partner at Altimeter on the private investing team where he focuses on investing in iconic late stage technology. If the deal goes through, it. 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). With all of this said, we truly believe that the company should be making some of these important investments. Enjoy a 7-Day Free Trial Thru Feb 17, 2023! About Kevin Wang. Altimeter Capital Management LP lifted its position in shares of SEA by 128.0% during the first quarter. 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. I have deep respect and admiration for founders that continue to grind, inspire, and invent long after the financial motivation is gone. In the letter, Gerstner said Altimeter Capital doesn't have demands and simply wants to engage with Meta management. But far from being a bad decision, we think the recommendations outlined above will lead to a leaner, more productive, and more focused company a company that regains its confidence and momentum. As such, we would encourage the company to move aggressively and cut at least 20% of employee-related expenses by January 1, 2023. 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. 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. ", Twitter. 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ISDA fosters safe and efficient derivatives markets to facilitate As always, happy to connect with you and your team. Meta changed its company name from Facebook to better focus on its VR hardware and software and is spending $10 billion per year on the technology. United has an Underqualified, Ineffective, and Entrenched Board: While presiding over United's stunning long-term underperformance, we believe that the incumbent Board (and a majority of the newly-expanded 15-person Board): (1) lacks sufficient leadership, expertise, and experience to challenge management and hold management accountable, to direct an operational and financial turn-around, and to maximize stockholder value; (2) has entrenched itself by implementing various mechanisms to financially penalize stockholders for making meaningful Board changes; (3) has failed to adequately align management compensation with stockholder interests; and (4) is too stale to effectively represent stockholders. 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. 2023 CNBC LLC. Indias general insurers are looking to set up a larger marine insurance pool to cover the risks of transporting crude oil, edible oil, project machinery and fertiliser from the war-torn Russia-Ukraine region. Email. When you look at these questions, it comes down to this. Altimeter's nominees are: Some companies require tremendous capex investment to maintain their existing business. As always, happy to connect with you and your team. So no, these issues are rea,l what's going on in Russia is real, what's going on in Europe is real. Altimeter was founded in 2008 and is headquartered out of Boston, Massachusetts. But as you know, in the first three months of this year, all the high-quality stocks are being destroyed as well. Altimeter Capital Management LP. ", Medium.com. So first, you need to understand why did we see a deceleration of revenue because that informs why we're going to see a reacceleration in the back half of this year. My bet is we're gonna have less this year. Meta and other large companies have made it very difficult for start-ups to hire. It's good to see you again. I think they have to take a look at their capital allocation plan. This lack of focus and fitness is obscured when growth is easy but deadly when growth slows and technology changes. If they do it, I think the stock can be up over 50% between now and the end of the year. Privacy Policy, ISDA uses cookies to enhance your experience on our website. will trigger a new window or tab to open. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. We'll see you soon. Hedge Fund - Altimeter Capital Management - Insider Monkey The changes for the Quest 2 begin Sunday, March 5. Please refer to the section on cookies in our Website Privacy Policy Techmeme: Open letter: Altimeter Capital founder and CEO Brad Gerstner I think the only debate is what is the multiple going to be in three months, in six months, in nine months. 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. Moreover, Meta has industry leading capabilities in key future technologies like artificial intelligence and immersive 3d that will help drive new products and future growth. Altimeter Capital Management, LP Based on yesterday's announcement, it seems the Board now agrees that for many years it operated with a suboptimal composition. effective risk management for all users of derivative products. But what is the right amount? In fact, we believe that augmented and artificial intelligence has the potential to drive more economic productivity than the internet itself. I have been told that Amazon spent far less in total to build AWS. GERSTNER: Well, first let's talk about what took Facebook down, right? We've destroyed over $15 trillion of stock market wealth. And now we've shot right through the five-year average. The bet . 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. 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 . After several years of growing tensions, the potential for a reset under Australia's new Labor government is in question as trade sanctions remain and diplomatic disputes persist. The full text of the stockholder letter to the United Board follows: March 8, 2016. 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. 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. Altimeter Capital owns a stake of about $320 million, according to the Wall Street Journal, but that only equates with a 0.1% share of the company, according to Meta's latest filings with the. It takes effect in 2023. 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. We believe the future lies in AI. 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. CAPEX Investing Aggressively and Responsibly in the Future of AI. About Altimeter Capital Altimeter is a global investment firm managing both public and private funds focused on the airline, travel, technology, internet, software, and consumer sectors. Right? 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. Home : Altimeter Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. He also asked Zuckerberg to cut down on capex and employee expenses. What Does Metaverse Mean and How Does This Virtual World Work? As you know, we are long-term shareholders. I think that this is a business that is investing in the right things. GERSTNER: Scott, I love that you asked the question. Finally, Prudential PLC lifted its . Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. The conventional wisdom press and investor is that the core business hit a wall last fall. It's a better version of Messenger. I'm going to own these companies, there are a handful of select companies that are free cashflow positive that are going to be worth more in the future. David Einhorn's: Greenlight Capital. We also believe Metas investment in AI will lead to exciting and important new products that can be cross-sold to billions of customers. It massively distorted multiples on the way in and it's massively distorting multiples on the way out. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. 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. It just launched in 150 countries, has over a billion views. We are confident that these employees will find replacement jobs and quickly be back to work on important inventions that will move us all forward. This company is perfectly positioned to capitalize on that they have the, the ad network to monetize it. Southeast Asian superapp Grab is likely to set a world record by selling itself into a special purpose acquisition company, or SPAC, run by U.S. tech venture capital investors Altimeter Capital . 16,839 Followers. What is the metaverse and why are billions of dollars being spent on it? It's down 32% in the last 11 months ,that ranks it in the top three of the last 20 years in terms of drawdowns. 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. You can learn more about the standards we follow in producing accurate, unbiased content in our. 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. This will alert our moderators to take action. The silver lining is that unlike many companies, this popular narrative obscures the truth. They're fearful about the war. Portfolio Gain +273.45%. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. 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. FTX's Bankman-Fried Quietly Invested More than $500 Million in Sequoia BRAD GERSTNER: Hey, Scott, thanks for having me. As a result, the team hastily pivoted the company toward the metaverse including a surprise re-naming of the company to Meta. Now they've told us that they're going to achieve 15% free cash flow margins this year, five years early, right, while still growing 100%. They were cratering ironically, now we're normalizing and growth stocks are down even more than they were at the start of COVID. But Meta needs to get its mojo back. At least one big investor is calling for Mark Zuckerberg to throw in We had given most of that up by middle of December. I'll acknowledge that Roblox and other names like that are in a much smaller, are in a much more perilous position in this market because they're not generating as much free cash as some of these other companies that I already mentioned. ET on GuruFocus.com Builders Union LLP Buys AppLovin Corp, Match. Despite public skepticism at times warranted we have been supporters Published Jan 7, 2021 6:11AM EST A ltimeter Growth Corp. 2, the second blank check company formed by Altimeter Capital targeting the tech sector, raised $400 million by offering 40 million. A Division of NBCUniversal. 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. 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. Altimeter Capital - Portfolio - Index PLAN, Yearly Conclusion A Leaner, Faster, More Successful Meta. 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. Altimeter Capital Management is an investment firm that operates within the technology sector. Can it possibly be worth a trillion? Further strengthening our own conclusions, your seemingly desperate actions yesterday appear as a transparent and cynical attempt to maintain your official privileges and power, despite your long historical record of deficient oversight on behalf of stockholders. So listen, I'm not happy about it. 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. click here! In the back half, you don't have those same comp issues that you have caused by COVID. March 2013 Protocol ALID: 66704. We certainly are neither short-term traders nor activists. 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 were about 30% to 40% depending upon which basket you looked at software internet above the five-year average. The letter is the latest sign that Meta investors are starting to express reservations about the company's recent performance. CNBC Exclusive: CNBC Transcript: Altimeter Capital Founder & CEO Brad ", Jitesh Ubrani of market research firm IDCpointed outthat Meta's year-over-year VR shipments plunged 93% in the fourth quarter, while those of Pico from rival ByteDance rose 110%. Grab to list in US via $40 bln merger with Altimeter Growth Samooha launches with tech that lets companies securely share data 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. So I am very unhappy because I've lost money on the deal. 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. 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. And so we add on a fair amount of exposures we entered this year. Grab Reportedly Set to List in US Via SPAC Merger at $35 Billion Valuation Do they want to stand with me and ride that out? Your P/E ratio has fallen from 23x to 12x and now trades at less than half the average P/E of your peers. Choose your reason below and click on the Report button. 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. Grab's SPAC Vehicle Altimeter Near Record Low After 28% Dive JavaScript in your web browser. 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. That's the asymmetry. Meta Platforms (META) shares jumped 6% after the tech giantannouncedbig price cuts for its virtual reality (VR) headsets. 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. Moreover, I am a strong supporter of founder-led companies especially when they have your successful track record of seeing the future. Investors in the round: 776 Capital, Altimeter Capital, BoxGroup, Dragoneer Investment Group, FirstMark, General Catalyst, Radcliff Group, ShawSpring Partners, SignalFire, The Baupost Group, Torch Capital, TQ Ventures "New Prices for Meta Quest 2s 256GB SKU + Meta Quest Pro. Brad Gerstner - Founder & CEO @ Altimeter Capital - Crunchbase He said the money the company is currently spending to develop VR could add up for a decade before it comes to fruition. They're fearful about what's going to happen with rates. Altimeter SPAC Has Reported $40 Billion Deal for Ride-Hail Company Grab The metaverse is a shared virtual environment with aspects of online gaming, augmented reality, and more that people can access via the Internet. 2023 CNBC LLC. Get this delivered to your inbox, and more info about our products and services. "If the company were investing $1-2B per year into this project, then that confusion might not even be a problem.".

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