On Oct. 11, Meta announced a new high-end VR headset, the Quest Pro. The stock today hit a new low under $3. We were about 30% to 40% depending upon which basket you looked at software internet above the five-year average. Are you as optimistic today as you were in months past? It did not specify which of Alitmeter's SPACs Grab was in talks with. WAPNER: I hear you. And as a result, you know, last year we held up better than most because we own high-quality stocks, and we were short lower quality stocks. 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. 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. But the fact of the matter is the entire market has evaporated around these types of stocks. 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. About Altimeter Capital Kultura Capital Management is being structured as a hybrid fund that will focus on late-stage tech startups as well as public companies, the person said. Focusing the Metaverse: the Next Generation of Communication and Collaboration. ET on GuruFocus.com Builders Union LLP Buys AppLovin Corp, Match. 41,300 crore) to $25 billion (roughly Rs. "If the company were investing $1-2B per year into this project, then that confusion might not even be a problem.". We have no stimulus checks. If the company were investing $12B per year into this project, then that confusion might not even be a problem. Time to Get Fit an Open Letter from Altimeter to Mark Zuckerberg (and We dont have any demands. Why 20%? Altimeter. 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. 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. I'm not a seller. I think that this is a business that is investing in the right things. What is the connection between those three companies. Recently Active; Top Discussions; Best Content; WSO Media; BY INDUSTRY; Investment Banking Kevin Wang - Forbes Altimeter LLC. So we're in the neighborhood of a tradable bottom. We'll see you soon. In fact, we believe that augmented and artificial intelligence has the potential to drive more economic productivity than the internet itself. 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. for a description of how we use cookies. Think about this, Scott. The industry leader for online information for tax, accounting and finance professionals. Revenue. Following careful consideration, we have firmly concluded that meaningful change to United's existing Board of Directors is urgently required in order to reverse long-standing poor Board governance and the resulting many years of substantial and inexcusable Company underperformance relative to United's competitors. It's good to see you again. Home : Altimeter That's the asymmetry. 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. Altimeter Capital Management LP lifted its position in shares of SEA by 128.0% during the first quarter. Data is a real-time snapshot *Data is delayed at least 15 minutes. We have $130 oil and $6 gas at the pump. Worse, this skepticism seemed to be affirmed with a nearly-immediate and sizable miss in financial results and continued under-performance throughout 2022. Bruce Berkowitz's: Fairholme Capital Management. 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. To set a new and better course for the Company, and to give United stockholders the opportunity to elect the Board they deserve, Altimeter has delivered to you a notice today indicating its intention to nominate six highly qualified professionals led by former Continental Airlines CEO Gordon Bethune to the United Board at the 2016 annual stockholder meeting. Sign up for free newsletters and get more CNBC delivered to your inbox. Metas core business is one of the largest and most profitable in the world with over $45 B in operating profits last year alone. 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. Sea Limited (NYSE:SE) Shares Bought by Capital International Ltd. CA Paul A. Reeder According to Hedge Follow, it was authored by Brad Gerstner, CEO and founder of technology investment firm Altimeter Capital. He joins me live. CNBC Exclusive: CNBC Transcript: Altimeter Capital Founder & CEO Brad 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. With all of this said, we truly believe that the company should be making some of these important investments. The metaverse is a shared virtual environment with aspects of online gaming, augmented reality, and more that people can access via the Internet. 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,. How many increases? 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. 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 . Can it possibly be worth 100 billion? 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 . 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 Capital owns about 2.46 million Meta shares. Skip to main content. Worse, this skepticism seemed to be affirmed with a nearly-immediate and sizable miss in financial results and continued under-performance throughout 2022. In an open letter to CEO Mark Zuckerberg on Monday, shareholder Altimeter Capital Management urged Meta Platforms Inc., the parent company of Facebook, to streamline by eliminating positions and capital expenditures. So, its with some hesitation, but significant conviction, I am sharing an open letter strongly encouraging Meta to streamline and focus its path forward. The bet . "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," Gerstner wrote. About Kevin Wang. Altimeter Capital Management, LP Buys Opendoor Technologies Inc, Toast Inc, Duolingo Inc, Sells . Chief Executive Officer Social networking is the use of internet-based social media platforms to make connections and share various media with friends, family, colleagues, or customers. 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. In fact, our internet stock index is at a 10-year low and software is back nearly where we were in 2016 before the rerating of software occurred. 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. Drew Angerer | Getty Images News | Getty Images, Meta needs to focus on its core business, not the Metaverse, says Sand Hill's Brenda Vingiello. What am I supposed to think about that? 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 . We believe in this team. What is the metaverse and why are billions of dollars being spent on it? This would double annual FCF and put FCF as a percentage of revenue more in line with Google, Microsoft, and Apple. Altimeter Capital - Portfolio - Index 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. As always, we welcome the opportunity to engage in further discussions focused on this shared objective. To put it in perspective, Roblox was a couple percent position for us, right, and Snowflake was a 30% position for us. Mar 11, 2021 3:07 PM EST. We can just go through the list, Uber, Facebook, Roblox. How big is that market? ISDA fosters safe and efficient derivatives markets to facilitate 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. At Meta, the number of employees is up over 3x from 25k to 85k employees in just the last four years! Finally, Prudential PLC lifted its . Q1 2021: 13 Largest Global Startup Funding Rounds - AlleyWatch The same is true for Microsoft, right? 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. 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. Investopedia does not include all offers available in the marketplace. The average tech IPOs down almost 50% from last year, SPACs much worse, direct list bad, all stocks that were taken public last year now it's clear were overvalued relative to where the world is trading them today. As such, we would encourage the company to move aggressively and cut at least 20% of employee-related expenses by January 1, 2023. It's been a half century since Australia and China established formal relations, but neither side is really celebrating. In a single quarter, they added 1.4 billion. With that said, we have a shortage of talent in Silicon Valley. 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. See the Top Performing Hedge-Funds > Brad Gerstner . 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. I have been told that Amazon spent far less in total to build AWS. This is a company that only did 1.2 billion in revenue last year. 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. 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's our largest position in the book. You probably know you should capitalize proper nouns and the first word of every sentence. Brad Gerstner, Founder and CEO of Altimeter Capital; former board member of Orbitz Worldwide; 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. Altimeter Capital Management, LLC - Brad Gerstner - TipRanks FalconX Raises $210M Following 30x YoY Revenue Growth; Now Valued at $3