But remember, Facebook's not just sitting there with his hands in the air saying oh my goodness, what can we do in a world where Apple wants to flex its monopolistic muscle and steal all of our advertisers. They are people with families and kids to support. 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. 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. We want to hear from you. Meta and other large companies have made it very difficult for start-ups to hire. I don't think they can. Credit Derivatives Determinations Committees, how to enable Paul A. Reeder
2550 Sand Hill Road, Suite 150. 3. 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 mean, two years ago we were we were having this conversation. ISDA is a registered trademark of the International Swaps and Derivatives Association, Inc. We've destroyed over $15 trillion of stock market wealth. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. 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 . No matter how a company came public in 2021, let alone December of 2021, right, they've been obliterated. Meta shares moved 6% higher following the announcement. ISDA fosters safe and efficient derivatives markets to facilitate "An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards," Gerstner wrote. Facebook's revenues in Q1 were lower than people expected. When you look at these questions, it comes down to this. 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, LP
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. 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. So these are different order of magnitude bets. Meta (Facebook) Begins Biggest Layoffs in Company's History, Meta (META) Connect Conference Key Takeaways, Meta (Facebook) Shares Slammed as Earnings, Spending Disappoint. 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. Skip to main content. 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. What's going to be the inflation print in April? 233 South Wacker Drive
See here for a complete list of exchanges and delays. 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. Tesla recalls 3,470 Model Y vehicles over loose bolts, Exclusive: Nvidia's plans for sales to Huawei imperiled if U.S. tightens Huawei curbs-draft, Reporting by Akash Sriram in Bengaluru; Editing by Arun Koyyur and Anil D'Silva, Mexico can't match U.S. incentives for proposed Tesla battery plant, minister says, Taiwan's TSMC to recruit 6,000 engineers in 2023, Exclusive: Snapchat kicks few children off app in Britain, data given to regulator shows, Exclusive news, data and analytics for financial market professionals. Please refer to the section on cookies in our Website Privacy Policy Sign up for free newsletters and get more CNBC delivered to your inbox. They are people with families and kids to support. Right? +Includes DocuBay and TimesPrime Membership.
Metas core business is one of the largest and most profitable in the world with over $45 B in operating profits last year alone. But I do believe that this company like the others that we talked about is going to be worth more in the future supported by real free cash flow. When you were with me in December, you said that you had picked some more of that up along with Snowflake. It can compound its earnings and this that and the other but I need to know can it get back to that level. 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. We can just go through the list, Uber, Facebook, Roblox. SPACs notched more than $70 billion so far in 2021, a new record. The stock is 51% off of its high. 2023 CNBC LLC. Social networking is the use of internet-based social media platforms to make connections and share various media with friends, family, colleagues, or customers. It added that VR is "a powerful social platform and creative technology, and the more people with access to it, the better. Altimeter Capital Management LLC. 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. Consumer confidence is plummeting. Sign Up. Chief Executive Officer
Altimeter is focused on technology investment, and has found multi-billion-dollar success. Worse, this skepticism seemed to be affirmed with a nearly-immediate and sizable miss in financial results and continued under-performance throughout 2022. This is a business it's trading at 12 times free cash flow, X the meta investment and 18 times including. If you click the "Accept" button, you consent to the use of cookies on our website. Altimeter's nominees are:
In our view given United's valuable and industry-leading strategic asset base this long-term underperformance directly results from an underqualified, ineffective, complacent, and entrenched Board. 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. Meta. c/o Altimeter Capital Management, LP. articles a month for anyone to read, even non-subscribers! 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. Form of Letter Agreement between the Registrant, the Sponsor and each director and executive officer of the Registrant. In the letter, Gerstner said Altimeter Capital doesn't have demands and simply wants to engage with Meta management. Think about this, Scott. 16,839 Followers. By any normal company or start up standard, $5 B per year would seem like an extraordinary amount. 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. Today, the cost of capital has radically changed, and so has Metas growth rate. 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 and other large companies have made it very difficult for start-ups to hire. It can do great this, the business can be incredible. In fact, we believe that augmented and artificial intelligence has the potential to drive more economic productivity than the internet itself. 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 also believe Metas investment in AI will lead to exciting and important new products that can be cross-sold to billions of customers. Louis Bacon's: Moore Capital Management. That was our baseline that we were going to have a relatively soft landing, three to four rate hikes. . Altimeter Capital Management LP lifted its position in shares of SEA by 128.0% during the first quarter. Altimeter Capital is an American investment firm based in Boston, Massachusetts and Menlo Park, California. If you look at, if you look at, you know, what we expect to occur over the rest of the year, this stock will compound as it continues to beat earnings, as it continues to expand its use cases, even without multiples expanding, right, as investors begin to look at those higher numbers in '23 and '24. Conclusion A Leaner, Faster, More Successful Meta. If multiples expand then you have even more upside. Instead, they grew at 106%. 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. Meta stock is down over 61% in 2022. Benzinga does not provide investment advice. PLAN, Yearly "New Prices for Meta Quest 2s 256GB SKU + Meta Quest Pro. 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. 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. 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. What is the rate of increase? We've never seen on the order of magnitude of the Marshall Plan at the beginning of COVID. But admittedly, you know, nights like tonight we'll we'll get we'll catch a little less sleep. Can it possibly be worth 200 billion? Altimeter Capital Management, ISDA 2021 SBS Top-Up Protocol - Adherence. ET on GuruFocus.com Builders Union LLP Buys AppLovin Corp, Match. To read full story, subscribe to ET Prime, Billed annually at So, its with some hesitation, but significant conviction, I am sharing an open letter strongly encouraging Meta to streamline and focus its path forward. You know, I said on Twitter a few weeks ago, I don't think the Fed's behind the curve on rates. 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). Altimeter manages a long / short public equity fund and private growth equity funds. 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 that will be rolled out in Q2 and Q3. Bill Ackman's: Pershing Square Capital Management. Get your daily dose of business updates on WhatsApp. I think the only debate is what is the multiple going to be in three months, in six months, in nine months. 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. I don't think there's any chance that the Fed is going to raise rates 10 times this year. 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. Chase Coleman's: Tiger Global Management. 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%. And I've let the company know that, right? Of course, a company that connects nearly three billion users on phone and text must be investing in the next generation of communication. He joins me live. Wall Street closes sharply higher, notches weekly gains as Treasury yields ease, Morgan Stanley reaffirms Top Pick on Apple (AAPL) stock, sees catalyst-rich event path, Amazon (AMZN) pausing construction on second HQ in Virginia - Bloomberg, Broadcom Q1 results & guidance beat estimates; analysts praise 'stellar' execution, Dell reverses early gains on soft outlook; analyst reactions mixed, Embark Trucks (EMBK) to reduce workforce, explore strategic alternatives including liquidation, Ford Motor (F) Declares $0.65 Special Dividend; 4.5% Yield, Crypto firms behind Tether used falsified documents to maintain banking system access - WSJ, Altamira Therapeutics (CYTO) Reports Study Showing Bentrio's Superior Nasal Residence Time and Rheological Properties, Desktop Metal (DM) jumps on chatter of deal with Apple, Midday movers: C3 AI, Costco, Zscaler and more, Dell, Zscaler, ChargePoint fall premarket; Tesla, Hewlett Packard rise, After-hours stock movers: C3.ai jumps on results, Zscaler falls, Macy's, Salesforce and Okta rise premarket; Silvergate, Tesla fall, After-hours movers: Salesforce surges on beat, Silvergate falls on 'going concern' warning. But what is the right amount? The last 10 years have been a unique time in tech and for Meta. Musk Made a Mess at Twitter. As such, we would encourage the company to move aggressively and cut at least 20% of employee-related expenses by January 1, 2023. Why 20%? 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. 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. Limit investment in metaverse / Reality Labs to no more than $5B per year. 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. Neither Altimeter, nor any of its affiliates or personnel, offers investment advisory services via the internet. Bruce Berkowitz's: Fairholme Capital Management. You would simply do R&D quietly and investors would focus on the core business and the breakthroughs in AI. Right. There is no doubt that doubling annual FCF will improve share price. The deal values the combined company at $35 billion and will. click here! Panel led by former SC judge to include NaBFID chair KV Kamath and Infys Nandan Nilekani. Altimeter Capital owns about 2.46 million Meta shares. Despite public skepticism at times warranted we have been supporters "In short, Meta needs to get fit and focused.". Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Conforti plans to join a new firm as a co-founder with former Whale Rock Capital Management partner Kristov Paulus, said one of the people, who asked not to be identified because the information is private. We had given most of that up by middle of December. Dear Chairman Meyer and Board Members:
Ultimately, we and the Board necessarily must share the same objective: maximizing long-term value creation for United's stockholders, customers, and employees. As you know, we are long-term shareholders. All quotes delayed a minimum of 15 minutes. I can't tell you what's going to happen the next three days or the next three weeks or even three months. With all of this said, we truly believe that the company should be making some of these important investments. Headquarters Location One International Place Suite 2400 Boston, Massachusetts, 02110, United States 617-310-6180 Suggest an edit That's what makes markets. I have deep respect and admiration for founders that continue to grind, inspire, and invent long after the financial motivation is gone. Brad Gerstner, the CEO of Altimeter Capital and a Meta investor, wrote in an open letter to the company in October that Meta needs to "get fit and focused," and he was critical of the hefty. It's 3 trillion, right? Your P/E ratio has fallen from 23x to 12x and now trades at less than half the average P/E of your peers. Round: Series D Description: Ro is a telehealth startup that operates digital health clinics for men's and women's health, along with smoking cessation. Altimeter. Whatever the reason, that is certainly the perception. 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. But Meta needs to get its mojo back.
And, while most companies will struggle to monetize AI, we believe Meta is incredibly well positioned to leverage AI to make all of its existing products better. 41,300 crore) to $25 billion (roughly Rs. AGCUU went public at $10 on Oct. 1, and closed Tuesday at $11.80. Gordon Bethune, former CEO of Continental Airlines; board member of Honeywell, Prudential Financial, and Sprint;
WAPNER: I wanna, I want to take a break and get into some of those names of all four but before I do that lastly, you mentioned very interestingly that you've taken your bond short off. I don't think Mark did a particularly good job of explaining the meta investments. But I think if you have a time horizon over the course of the one to three years, we see a lot of stocks in our universe that we not only think are going to end the year higher, but we think are going to be multiples higher as we look out over the next two to three years. It can do that by making. Ram Parameswaran is the founder of Octahedron Capital, a global, growth-oriented investment firm that seeks to make concentrated investments in leading public and private companies that drive the world's internet economy. Portfolio Gain +273.45%. Altimeter Capital Management, LP ("Altimeter") is an SEC-registered investment adviser. "If the company were investing $1-2B per year into this project, then that confusion might not even be a problem.". 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. We don't think we're going to have 10 rate hikes and we do think there'll be an off ramp to the situation in Ukraine. 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. 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. In the last 18 months, Meta stock is down 55% (compared to an average of 19% for its big-tech peers). In short, Meta needs to get fit and focused. But what is the right amount? Will His AI Plans Be Any Different? 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. They were buying goods, soccer balls on DICK's Sporting Goods and candles on Williams Sonoma. Can they maintain their growth momentum? We believe the future lies in AI. 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. And frankly, they weren't a very good hedge because bonds haven't moved all that much but gross stocks are down 60, 70, as you mentioned, down over 80%. And what is going to be the resolution to the situation in the Ukraine? The letter is the latest sign that Meta investors are starting to express reservations about the company's recent performance. Altimeter Capital launched its two SPACs in October and January, raising a combined $850 million between the two blank-check vehicles. 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. 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. Can you tell me where that stands now and how you view stocks like that that have gotten absolutely obliterated? I think they have to take a look at their capital allocation plan. We do not take job reductions lightly. Conclusion A Leaner, Faster, More Successful Meta. I expected that as the world of normalized post Omicron that we would get back to the five-year average multiple. 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. 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. Altimeter Capital Management is an investment firm with offices in Menlo Park, CA, and Boston, MA. I remember people asking that question about Amazon. This is a region of 700 million plus people. CAPEX Investing Aggressively and Responsibly in the Future of AI. See the Top Performing Hedge-Funds > Brad Gerstner . Frankly, if I was Sea Limited, if I was Uber, I might be looking at consolidating the business. 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. 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. The letter is the latest sign that Meta investors are starting to express reservations about the company's recent performance. 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. I think that this is a business that is investing in the right things. Brad Gerstner's Phone Number and Email Last Update. Contact. The facts are startling. Investopedia requires writers to use primary sources to support their work.