Of course, a company that connects nearly three billion users on phone and text must be investing in the next generation of communication. 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. 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. This is expected to facilitate trade as the West ratchets up sanctions on Russia. Ultimately, we and the Board necessarily must share the same objective: maximizing long-term value creation for United's stockholders, customers, and employees. In short, Meta needs to get fit and focused. Getting Fit Headcount Reduction / Expense Control. About Altimeter Capital Steven Cohen's: Point72 Asset Management. I have deep respect and admiration for founders that continue to grind, inspire, and invent long after the financial motivation is gone. Altimeter Capital Management is a technology focused investment firm based in Menlo Park, CA and Boston, MA. Whatever the reason, that is certainly the perception. It did not specify which of Alitmeter's SPACs Grab was in talks with. Brad Gerstner is the Founder & Chief Executive Officer at Altimeter Capital based in Boston, Massachusetts. BRAD GERSTNER: Hey, Scott, thanks for having me. Altimeter Capital Management, LP ("Altimeter") is an SEC-registered investment adviser. In preparation for its first-ever mass tournament, Chronos will feature a fantasy-theme RPG with the potential to earn prizes and a chance to win based on the classes of playable . Chicago, IL 60606
CAPEX Investing Aggressively and Responsibly in the Future of AI. Today, the cost of capital has radically changed, and so has Metas growth rate. If they do it, I think the stock can be up over 50% between now and the end of the year. 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). This compensation may impact how and where listings appear. 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. These are not numbers on a spreadsheet. Conclusion A Leaner, Faster, More Successful Meta. The Wall Street Journal reported on Thursday that Grab was in talks with Altimeter. 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. As always, happy to connect with you and your team. An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards. Meta shares moved 6% higher following the announcement. The same is true for Microsoft, right? Facebook's revenues in Q1 were lower than people expected. An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards. Crowdfunding is the use of small amounts of capital from a large number of people to raise money or fund a business. 9/29/2022 1:05 AM. I imagine they're going to be super aggressive about how they're buying back shares. Nobody debates whether or not this company is going to be more valuable in the future. It just launched in 150 countries, has over a billion views. On Oct. 11, Meta announced a new high-end VR headset, the Quest Pro. Meta and other large companies have made it very difficult for start-ups to hire. 2023 Benzinga.com. Where's your exposure today? . "Bloomberg Opinion" columnists offer their opinions on issues in the news. It takes effect in 2023. 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. As a result, the team hastily pivoted the company toward the metaverse including a surprise re-naming of the company to Meta. Two years from now, people are going to be looking back and say, why the hell didn't you buy Snowflake at 160 bucks a share? Focusing the Metaverse: the Next Generation of Communication and Collaboration. In the letter, Gerstner said Altimeter Capital doesn't have demands and simply wants to engage with Meta management. So no, these issues are rea,l what's going on in Russia is real, what's going on in Europe is real. At the start of COVID on March 26th when I felt about like I do today, growth stocks were under assault. WAPNER: Man, I love how honest you are and I know our viewers do as well. Altimeter Capital Management, LP
You got a lot of this right but multiples have come down a heck of a lot to this point. Altimeter Capital Management LP lifted its position in shares of SEA by 128.0% during the first quarter. 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. 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. 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. So, its with some hesitation, but significant conviction, I am sharing an open letter strongly encouraging Meta to streamline and focus its path forward. Conclusion A Leaner, Faster, More Successful Meta. GERSTNER: So let's talk for a second about what I called. This is a business it's grown, it's trading at 28 times free cash flow with 20% growth, that will continue to compound. 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). WAPNER: I hear you. But what is the right amount? 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 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%. Choose your reason below and click on the Report button. Whatever the reason, that is certainly the perception. Get this delivered to your inbox, and more info about our products and services. They're fearful about what's going to happen with rates. All Rights Reserved. There is no doubt that doubling annual FCF will improve share price. Worse, this skepticism seemed to be affirmed with a nearly-immediate and sizable miss in financial results and continued under-performance throughout 2022. Skip to main content. ", Twitter. We hereby appoint ISDA as our agent for the limited purposes of the Protocol Agreement and accordingly we waive, and hereby release ISDA from, any rights, claims, actions or causes of action whatsoever (whether in contract, tort or otherwise) arising out of or in any way relating to this Adherence Letter or our adherence to the Protocol Agreement or any actions contemplated as being required by ISDA. As you know, Altimeter Capital Management and PAR Capital Management are long-term United Continental Holdings, Inc. ("United") stockholders that together own approximately 7.1% of United's outstanding common stock. I mean, we're talking about billions of dollars in revenue but you left that out. Altimeter Capital is in talks with ride-hailing company Grab to bring the company public in a $40 billion deal, according to a report from The Wall Street Journal. I think if you said why might these numbers have to come down if we're heading into a recession, the numbers are likely to come down. The technology-focused hedge fund with a 0.1% ownership claimed that the company had lost investor confidence as it increased . Altimeter Capital owns about 2.46 million Meta shares. Altimeter Capital Management LLC. Portfolio Gain +273.45%. We've never seen on the order of magnitude of the Marshall Plan at the beginning of COVID. In his open letter, Gerstner asked Meta to cap its expenditure on the metaverse to $5 billion a year from the current announced investment of $10-15 billion. Its founder faces criminal and civil charges and goes to trial in October. 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. 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. That's why even the sell side consensus numbers have their growth rate accelerating, almost doubling between Q2 and Q4 of this year and we think it will accelerate even faster. That was our baseline that we were going to have a relatively soft landing, three to four rate hikes. Can it possibly be worth a trillion? We have not made this difficult decision lightly, but after thorough, serious, and objective analysis, we feel compelled to act. The letter is the latest sign that Meta investors are starting to express reservations about the company's recent performance. Popular Searches. 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. This is a region of 700 million plus people. They may never get back to the levels at which they traded before. 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. In Q1 of 2021, everybody was sitting on their couch. I have been told that Amazon spent far less in total to build AWS. Altimeter Capital Management, LLC a Portfolio Activity as reported in the most recent 13F form published on Dec 31, 2022. So I think they got to match the investment to the revenue growth of the business. And notably, this decline in share price mirrors the lost confidence in the company, not just the bad mood of the market. 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. 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. Brad, thank you. Altimeter. In fact, we believe that augmented and artificial intelligence has the potential to drive more economic productivity than the internet itself. 15 Brad Gerstner, Founder and CEO of Altimeter Capital; former board member of Orbitz Worldwide;
They are people with families and kids to support. Please refer to the section on cookies in our Website Privacy Policy It was being purchased on the Shopify platform and people were using PayPal to check out. 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. It's good to see you again. 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.