What is the connection between those three companies. 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). So you know, when I look at what's going on in the business and I try to distill it from the noise, which is what has made us good for 20 years, not following the crowd, not panicking, but really looking at the business. Can they maintain their growth momentum? Credit Derivatives Determinations Committees, how to enable At $20-$25B of annual capex, Meta will still be investing market leading amounts to help invent the future of AI. 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 would double annual FCF and put FCF as a percentage of revenue more in line with Google, Microsoft, and Apple. Investopedia does not include all offers available in the marketplace. Prior to Octahedron, Ram was a partner and portfolio manager at Altimeter Capital, a multi-billion dollar investment firm . Our six nominees have the necessary skills, leadership abilities, and relevant experience to catalyze a United course change and to help the Company realize its immense potential. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. You know, I told people at the time that, you know, there's risk in making these investments, right, we're shareholders of this, we've lost capital. H1 Raises $100M Series C to Expand Footprint, Make H1 the We'll see you soon. Southeast Asian Superapp Grab Could Set SPAC Record At the end of the second quarter this year, Altimeter Capital held more than 2 million shares of Meta. I have deep respect and admiration for founders that continue to grind, inspire, and invent long after the financial motivation is gone. The comp against IDFA was very difficult in Q1 and will again be difficult in q2. They are people with families and kids to support. Meta shareholder wants Facebook parent to cut jobs, spending The offers that appear in this table are from partnerships from which Investopedia receives compensation. 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. 15 Now you didn't address any of the iOS changes and the revenue hit that Facebook is is assuming from that and those are legitimate changes. Today, the cost of capital has radically changed, and so has Metas growth rate. ET on GuruFocus.com Builders Union LLP Buys AppLovin Corp, Match. 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. They were cratering ironically, now we're normalizing and growth stocks are down even more than they were at the start of COVID. 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 $405 a share. It is a poorly kept secret in Silicon Valley that companies ranging from Google to Meta to Twitter to Uber could achieve similar levels of revenue with far fewer people. Altimeter Capital Management LP Info Size ($ 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. They may never get back to the levels at which they traded before. 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,. If the deal goes through, it. It's a better version of Zoom. Founder & Chief Executive Officer at Altimeter Capital . Altimeter Capital is an American investment firm based in Boston, Massachusetts and Menlo Park, California. Altimeter was founded in 2008 and is headquartered out of Boston, Massachusetts. We have $130 oil and $6 gas at the pump. Brad Gerstner - Founder & CEO @ Altimeter Capital - Crunchbase 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. 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. Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more! Altimeter Capital Management, ISDA 2021 SBS Top-Up Protocol - Adherence. FTX, once the third-largest centralized cryptocurrency exchange, is now in U.S. bankruptcy. 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 . Popular Searches. +Includes DocuBay and TimesPrime Membership. Meta reported in February that Reality Labs lost $13.72 billion in 2022. Altimeter Capital owns about 2.46 million Meta shares. Altimeter Capital Management partner Chris Conforti plans to leave the investment firm, according to people with knowledge of the matter. Brad Gerstner These times are what try people if you dig a hole and get into the hole here at the bottom after having lost, you know, my sense is you're locking in losses that you're going to come to regret. He also asked Zuckerberg to cut down on capex and employee expenses. United has a Clear Record of Sustained and Substantial Underperformance: Despite premier, industry-leading strategic assets such as significant scale advantages, strong brand recognition, hubs in key business markets, and membership in the largest global airline alliance United has been the worst-performing U.S. airline stock over the last five years. 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. And so we add on a fair amount of exposures we entered this year. Altimeter LLC. Grab's SPAC Vehicle Altimeter Near Record Low After 28% Dive The same is true for Microsoft, right? Meta Shareholder Asks Firm to Cut Jobs, Spending in Open Letter to CEO Altimeter Capital Management, LLC a Portfolio Activity as reported in the most recent 13F form published on Dec 31, 2022. Ultimately, we and the Board necessarily must share the same objective: maximizing long-term value creation for United's stockholders, customers, and employees. Nov. 16, 2021 at 2:38 p.m. The bet . 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. It said Grab is expected to raise between. GERSTNER: Scott, thanks for having me. Right. In the last 18 months, Meta stock is down 55% (compared to an average of 19% for its big-tech peers). Southeast Asia's Grab in talks for U.S. listing via $40 billion SPAC Login You would simply do R&D quietly and investors would focus on the core business and the breakthroughs in AI. Now that's what's going on in the business so all those people writing rest in peace epitaphs for Facebook are going to have to deal with that acceleration. All of China internet down over 80%. SPACs notched more than $70 billion so far in 2021, a new record. March 8, 2016 WAPNER: I hear you. I imagine they're going to be super aggressive about how they're buying back shares. 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. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. Will His AI Plans Be Any Different? But you also (sometimes) capitalize the first word of a quote. The Meta investor recommends a plan to get the company's "mojo back.". Altimeter's nominees are: Contact. And so we're getting hurt like everybody else. We know Meta has more reach, more relevance, and more incredible opportunities for growth than almost any platform on the planet. I think, or inflation, I think they're behind the curve on recession. "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," Gerstner wrote in the letter. Altimeter Capital launched its two SPACs in October and January, raising a combined $850 million between the two blank-check vehicles. Samooha, a startup developing a "cross-cloud" data collaboration platform, today announced that it raised $12.5 million in a funding tranche backed by Altimeter Capital and Snowflake Ventures . 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. This is expected to facilitate trade as the West ratchets up sanctions on Russia. 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. 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. It's going to do 20 billion in GMV. 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. We dont have any demands. 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." We want to hear from you. Barney Harford, former CEO of Orbitz Worldwide; former board member of Orbitz Worldwide and eLong; I think the only debate is what is the multiple going to be in three months, in six months, in nine months. 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. If you click the "Accept" button, you consent to the use of cookies on our website. And then take that part of the world. So I am very unhappy because I've lost money on the deal. We worked hard on the deal and the timing was horrific. 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. It's 3 trillion, right? United Continental Holdings, Inc. Altimeter Capital Management is a hedge fund with 17 clients and discretionary assets under management (AUM) of $17,950,309,162 (Form ADV from 2022-05-27). With that said, we have a shortage of talent in Silicon Valley. We know they have high EBITDA margins on the rideshare business which is dominant across the region. Please refer to the section on cookies in our Website Privacy Policy All quotes delayed a minimum of 15 minutes. Chief Executive Officer Skip to main content. Hedge Fund Manager. 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. So were Shopify's and so were PayPal. GERSTNER: No, I didn't leave it out. Altimeter SPAC Has Reported $40 Billion Deal for Ride-Hail Company Grab My bet is we're gonna have less this year. But listen, there's massive uncertainty in the world. Moreover, I am a strong supporter of founder-led companies especially when they have your successful track record of seeing the future. Moreover, I am a strong supporter of founder-led companies especially when they have your successful track record of seeing the future. 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. United Stockholders Altimeter Capital and PAR Capital Express They're building their own ad platform, right, that can deal with this. Kevin Wang - Forbes In the letter, Gerstner said Altimeter Capital doesn't have demands and simply wants to engage with Meta management. As I look at it, the market is now pricing in at least seven rate hikes. Altimeter manages a long / short public equity fund and private growth equity funds. c/o Chairman Henry L. Meyer III Why didn't you buy, you know, Uber at 28 bucks a share? 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. Stock Radar: 19% from Budget Day! These include white papers, government data, original reporting, and interviews with industry experts. 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 . Limit investment in metaverse / Reality Labs to no more than $5B per year. If Meta was able to control those costs, he said, then it could double its free cash flow and improve its share price. Rates are going up and we have a war. Revenue. Altimeter is focused on technology investment, and has found multi-billion-dollar success. Meta investor Altimeter Capital urges Mark Zuckerberg to slash jobs 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. Grab to list in US via $40 bln merger with Altimeter Growth Data is a real-time snapshot *Data is delayed at least 15 minutes. They were buying goods, soccer balls on DICK's Sporting Goods and candles on Williams Sonoma. 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. Our contact information, solely for purposes of this Adherence Letter (and unrelated to the Questionnaire delivery options in the subsequent section) is: We consent to the publication of a conformed copy of this letter by ISDA and to the disclosure by ISDA of the contents of this letter. Altimeter Capital's Brad Gerstner Issues Open Letter to Meta (NASDAQ: META) and Mark Zuckerberg. Of course, a company that connects nearly three billion users on phone and text must be investing in the next generation of communication. United Urgently Needs a Course Correction: United's stockholders, customers, and employees deserve better Board governance, better Board leadership, and better Board performance. The silver lining is that unlike many companies, this popular narrative obscures the truth. The definitions and provisions contained in the Protocol Agreement are incorporated into this Adherence Letter, which will supplement and form part of each Protocol Covered Agreement between us and each other Adhering Party. Brad Gerstner founded the. Altimeter Capital Portfolio Investments, Altimeter Capital Funds This company is perfectly positioned to capitalize on that they have the, the ad network to monetize it. I think that this is a business that is investing in the right things. We were about 30% to 40% depending upon which basket you looked at software internet above the five-year average. At least one big investor is calling for Mark Zuckerberg to throw in FalconX Raises $210M Following 30x YoY Revenue Growth; Now Valued at $3.75 Billion Series C Led by Altimeter Capital, B Capital Group, Sapphire Ventures, and Tiger Global Management, with. "An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards," Gerstner wrote. Social networking is the use of internet-based social media platforms to make connections and share various media with friends, family, colleagues, or customers. As a result, the team hastily pivoted the company toward the metaverse including a surprise re-naming of the company to Meta. 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. So listen, I'm not happy about it. So I think they got to match the investment to the revenue growth of the business. Our best guess is that maintenance capex for Meta is less than $10B annually. According to Hedge Follow, it was authored by Brad Gerstner, CEO and founder of technology investment firm Altimeter Capital. Altimeter.com is Altimeter's only website. But admittedly, you know, nights like tonight we'll we'll get we'll catch a little less sleep. It's our largest position in the book. And Meta certainly has abundant financial resources to invest and / or return to shareholders. What am I supposed to think about that? 16,839 Followers. In addition, people are confused by what the metaverse even means. 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. Your Reason has been Reported to the admin. 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. "New Prices for Meta Quest 2s 256GB SKU + Meta Quest Pro. Ranked #76 out of 483 Hedge Fund Managers. 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. Altimeter Capital. In the last 18 months, Meta stock is down 55% (compared to an average of 19% for its big-tech peers). It added that VR is "a powerful social platform and creative technology, and the more people with access to it, the better.