. Background [ edit] In 2008, Brad Gerstner founded Altimeter Capital in Boston, Massachusetts. Brad Gerstner's Phone Number and Email Last Update. So if you want to bet on the future of growth, Southeast Asia is one of the places you want to bet this is one of the dominant brands, dominant internet platforms, and it's got 7 billion of cash on the balance sheet. We'll see you soon. Rates are going up and we have a war. Altimeter Capital Management, ISDA 2021 SBS Top-Up Protocol - Adherence. What's going to be the inflation print in April? Oct 24 (Reuters) - Facebook-parent Meta Platforms Inc (META.O) needs to streamline by cutting jobs and capital expenditure, its shareholder Altimeter Capital Management said on Monday in an open letter to Chief Executive Mark Zuckerberg. WAPNER: So let me talk about your overall exposure if I if I could because by last December, you had said you had taken most of your your shorts off and your long exposure was back up to 70%. Meta didn't immediately respond to a request for comment. 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. We've destroyed over $15 trillion of stock market wealth. 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. . Altimeter. We have no stimulus checks. 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. Chief Executive Officer It's also a vote of less confidence about the company's ambitions in the world of virtual and augmented reality. Read More . Chief Executive Officer Worse, this skepticism seemed to be affirmed with a nearly-immediate and sizable miss in financial results and continued under-performance throughout 2022. The industry leader for online information for tax, accounting and finance professionals. Accept. Our Standards: The Thomson Reuters Trust Principles. There is no doubt that doubling annual FCF will improve share price. We think this is a 3X in three years even if software multiples remain at these levels near the five-year average. 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. They may never get back to the levels at which they traded before. In short, Meta needs to get fit and focused. 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. Email. 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. Is it all about rates at this point, especially when you're talking about the kinds of vulnerable stocks that we've really had front and center, those being tech? Sincerely, There isnt a day that goes by where I dont find myself using Metas products to communicate, to connect, and to entertain still amazed at the power of these services. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. The answer to that is because people are very fearful. This lack of focus and fitness is obscured when growth is easy but deadly when growth slows and technology changes. Popular Searches. 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. In fact, we distributed over $6 billion worth of Snowflake to our venture investors last year. He defied expectations and made profits on Priceline, Expedia, Uber, Twilio, and Hubspot. Metas core business is one of the largest and most profitable in the world with over $45 B in operating profits last year alone. Adani Group on Thursday said US-based boutique investment firm GQG Partners has picked up equity stakes worth $1.87 billion (15,446 crore) in four listed group companies Adani Ports and Special Economic Zone, Adani Green Energy, Adani Transmission and flagship Adani Enterprises via secondary share sales. 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. Brad Gerstner founded the. Your Reason has been Reported to the admin. The firm's private equity arm makes all-stage venture capital investments, primarily in the technology sector. Sign up for free newsletters and get more CNBC delivered to your inbox. 16,839 Followers. 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. In a single quarter, they added 1.4 billion. 2023 International Swaps and Derivatives Association, Inc. They are people with families and kids to support. 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. Altimeter Capital Management LP lifted its position in shares of SEA by 128.0% during the first quarter. ", 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%. Some companies require tremendous capex investment to maintain their existing business. Usually you don't capitalize after a colon, but there are exceptions. Whatever the reason, that is certainly the perception. 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. Meta has also been feeling pressure to improve the finances of its Reality Labs, the company's metaverseunit, which includes the VR headsets. As always, happy to connect with you and your team. What am I supposed to think about that? Board of Directors 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. Before we we move, what do I do with Facebook? An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards. We were wrong. Finally, Prudential PLC lifted its . A Division of NBCUniversal. ISDA is a registered trademark of the International Swaps and Derivatives Association, Inc. An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards. Some companies require tremendous capex investment to maintain their existing business. So, its with some hesitation, but significant conviction, I am sharing an open letter strongly encouraging Meta to streamline and focus its path forward. Meta can get its mojo back, says Brad Gerstner, but it will have to take some hard decisions first. Altimeter Capital's Brad Gerstner Issues Open Letter to Meta (NASDAQ: META) and Mark Zuckerberg. It's our largest position in the book. 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. Brad Gerstner, Founder and CEO of Altimeter Capital; former board member of Orbitz Worldwide; 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. 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. 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. Sign Up. 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. CAPEX Investing Aggressively and Responsibly in the Future of AI. And notably, this decline in share price mirrors the lost confidence in the company, not just the bad mood of the market. 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. 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 . Facebook parent Meta Platforms (META) announced that it would reduce selling prices for its Quest virtual reality (VR) headsets. 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. So we're in the neighborhood of a tradable bottom. Altimeter Capital Management, LP ("Altimeter") is an SEC-registered investment adviser. It will get there three years from now because it's free cash flow margin will continue to expand and if you just get it, give it the multiples that are currently in the market, right, that have already drawn down on free cash flow, you get to that 3X that I quoted. . David Einhorn's: Greenlight Capital. I have been told that Amazon spent far less in total to build AWS. With all of this said, we truly believe that the company should be making some of these important investments. 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. Altimeter Capital Management LLC. Mar 11, 2021 3:07 PM EST. GERSTNER: So, Scott that you know the top six names in our book are all companies that we believe are, you know, both accelerating, expanding margins, expanding free cash flow margins, right, and that are critically important and will be worth more in the future. 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. Time to Get Fit an Open Letter from Altimeter to Mark Zuckerberg (and the Meta Board of Directors) | by Brad Gerstner @altcap | Medium 500 Apologies, but something went wrong on our end.. "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. 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. AGCUU went public at $10 on Oct. 1, and closed Tuesday at $11.80. Or it's well over a trillion, Microsoft 3 trillion. The facts are startling. Learn the pros and cons of crowdfunding. It was being purchased on the Shopify platform and people were using PayPal to check out. After all, why not hire more people and invest in more things when the cost of capital was near zero and growth seemed unlimited? Limit investment in metaverse / Reality Labs to no more than $5B per year. 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. 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. It added that VR is "a powerful social platform and creative technology, and the more people with access to it, the better. To put that in perspective, excluding your large metaverse investment, Meta is investing more in capex than Apple, Tesla, Twitter, Snap, and Uber combined! Altimeter Capital. Where's your exposure today? Bill Ackman's: Pershing Square Capital Management. At $20-$25B of annual capex, Meta will still be investing market leading amounts to help invent the future of AI. GERSTNER: So let's talk for a second about what I called. But Meta needs to get its mojo back. We're down on the year. After all, why not hire more people and invest in more things when the cost of capital was near zero and growth seemed unlimited? 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. effective risk management for all users of derivative products. 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. Are you as optimistic today as you were in months past? Can they maintain their growth momentum? Brad Gerstner, Altimeter's chair who encouraged aggressive investment in artificial intelligence, said the firm wanted to engage with Meta and did not have any demands. We believe in this team. 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." This letter constitutes, as between each other Adhering Party and us, an Adherence Letter as referred to in the Protocol. 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. 2023 CNBC LLC. We believe that our conclusion is shared by many of United's long-suffering stockholders, customers, and 80,000+ dedicated employees. You do, you do great work, excited for the new show and let's stay after it. UPDATE: Altimeter Capital, PAR Capital Issue Letter to United Continental Board - United Airlines Holdings (NASDAQ:UAL) - Benzinga SPY 397.68 0.74% QQQ 293.61 0.83% BTC/USD 22299.46 5.109%. 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. Drew Angerer | Getty Images News | Getty Images, Meta needs to focus on its core business, not the Metaverse, says Sand Hill's Brenda Vingiello. Menlo Park, CA 94025 (650) 549-9145 (Name, address, including zip code, and telephone number, including area code, of agent for service) Copies: . 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. We know they have high EBITDA margins on the rideshare business which is dominant across the region. Barney Harford, former CEO of Orbitz Worldwide; former board member of Orbitz Worldwide and eLong; We didn't see the concerns emerging about hyperinflation about 10 to 12 rate hikes, and we certainly didn't see this tragic more unfolding on the doorstep of Europe. At Meta, the number of employees is up over 3x from 25k to 85k employees in just the last four years! Gordon Bethune, former CEO of Continental Airlines; board member of Honeywell, Prudential Financial, and Sprint; The conventional wisdom press and investor is that the core business hit a wall last fall. Investopedia does not include all offers available in the marketplace. We believe the future lies in AI. And we are confident that your long-term investments in AI and the next generation of communications will continue to drive us all forward. So these are different order of magnitude bets. See here for a complete list of exchanges and delays. How many dogs want to eat the dog food? 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,. 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. 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. And what is going to be the resolution to the situation in the Ukraine? Unlock your 30 days free access to ETPrime now. "In short, Meta needs to get fit and focused.". 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. Frankly, if I was Sea Limited, if I was Uber, I might be looking at consolidating the business. I have been told that Amazon spent far less in total to build AWS. It massively distorted multiples on the way in and it's massively distorting multiples on the way out. 3. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. 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. He said the money the company is currently spending to develop VR could add up for a decade before it comes to fruition. Chase Coleman's: Tiger Global Management. PLAN. 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. Meta. 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. And I think they have to execute against the underlying operations in the business. ISDA fosters safe and efficient derivatives markets to facilitate effective risk management for all users of derivative products. 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. And Meta certainly has abundant financial resources to invest and / or return to shareholders. 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. And then take that part of the world. Includes DocuBay and TimesPrime Membership. Why 20%? I don't think stocks today reflect a great price discovery about where these stocks are going to be in six months, let alone two years, but I'm also eyes wide open to the fact that we could go lower before we go higher. 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.