altimeter capital letter
Meta stock is down over 61% in 2022. 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. This is a hard game. Can it possibly be worth 100 billion? My bet is we're gonna have less 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. We want to hear from you. 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. I mean you have defended it at every turn from the issues that the company has had you you defended Mark Zuckerberg, you've defended Sheryl Sandberg and you you did it quite loudly on this program. We believe that our conclusion is shared by many of United's long-suffering stockholders, customers, and 80,000+ dedicated employees. Mark Zuckerberg is a self-made billionaire and the CEO of Meta (formerly Facebook), which he co-founded in his dorm room in 2004. It's also a vote of less confidence about the company's ambitions in the world of virtual and augmented reality. 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. 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. As you know, we have attempted to work collaboratively with the current Board to meaningfully improve governance, Board composition, and oversight. I can't tell you what's going to happen the next three days or the next three weeks or even three months. 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. Based on yesterday's announcement, it seems the Board now agrees that for many years it operated with a suboptimal composition. 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. Link to 13F filings: SEC filings Data is a real-time snapshot *Data is delayed at least 15 minutes. Focusing the Metaverse: the Next Generation of Communication and Collaboration. It's 3 trillion, right? GERSTNER: Well, the first thing I would say is this, set aside SPAC. 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. Louis Bacon's: Moore Capital Management. You got a lot of this right but multiples have come down a heck of a lot to this point. 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. In fact, in the most recent quarter, they added 1.4 billion of contracted value. It's down 32% in the last 11 months ,that ranks it in the top three of the last 20 years in terms of drawdowns. 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. Finally, Prudential PLC lifted its . Accept. The conventional wisdom press and investor is that the core business hit a wall last fall. It's our largest position in the book. Will His AI Plans Be Any Different? In fact, we believe that augmented and artificial intelligence has the potential to drive more economic productivity than the internet itself. Meta. Right? 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 . Altimeter. 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 we spent about an hour together. 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. As between each other Adhering Party and us, the amendments in the Appendices to the Protocol shall apply to each Protocol Covered Agreement to which we are a party in accordance with the terms of the Protocol and this Adherence Letter. 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. In Q1 of 2021, everybody was sitting on their couch. It has 24 billion in free cash they're going to generate this year. 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. Menlo Park, CA 94025 (650) 549-9145 (Name, address, including zip code, and telephone number, including area code, of agent for service) Copies: . We have not made this difficult decision lightly, but after thorough, serious, and objective analysis, we feel compelled to act. The stock today hit a new low under $3. If you look at the company, it's now trading at $5 billion enterprise value. We do not take job reductions lightly. Contact. We worked hard on the deal and the timing was horrific. 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After all, why not hire more people and invest in more things when the cost of capital was near zero and growth seemed unlimited? Global Business and Financial News, Stock Quotes, and Market Data and Analysis. To accomplish this goal, we recommend a three step plan that will double FCF to $40 B per year and focus the companys teams and investments: Reduce headcount expense by at least 20%;Reduce annual capex by at least $5 B from $30B to $25B; andLimit investment in metaverse / Reality Labs to no more than $5B per year. I have deep respect and admiration for founders that continue to grind, inspire, and invent long after the financial motivation is gone. 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. It added that VR is "a powerful social platform and creative technology, and the more people with access to it, the better. 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. We dont have any demands. The last 10 years have been a unique time in tech and for Meta. And so that will be rolled out in Q2 and Q3. 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. CAPEX Investing Aggressively and Responsibly in the Future of AI. See here for a complete list of exchanges and delays. Our Standards: The Thomson Reuters Trust Principles. Chase Coleman's: Tiger Global Management. Sign Up. ", Medium.com. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. What do you think? I remember people asking that question about Amazon. I hear you but look, there are, there are some people who think and it's not maybe it's not a Snowflake, but it's a you know, a basket of these kinds of names that may never get back. We can just go through the list, Uber, Facebook, Roblox. 9/29/2022 1:05 AM. August 2012 Protocol ALID: 66703 WAPNER: Okay, that's a that's a big a bold call. Board of Directors c/o Chairman Henry L. Meyer III United Continental Holdings, Inc. . Altimeter LLC. If you really think about what the metaverse is in the first instance, it's a better version of what you and I are doing right here. Those decisions include slashing expenditure and reducing headcount, the CEO of Altimeter Capital told Meta founder Mark Zuckerberg in an open letter. We dont have any demands. If the deal goes through, it. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. 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. 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 We're withdrawing trillions off the Fed's balance sheet. I mean, two years ago we were we were having this conversation. We further understand that ISDA assigned a unique identification code or ALID to each adherence letter that was accepted for the August 2012 Protocol or the March 2013 Protocol and that, in order to amend a Protocol Covered Agreement pursuant to: (i) Appendix 1 to this Protocol (which is intended to top up agreements made pursuant to the August 2012 Protocol), we must provide our August 2012 Protocol ALID below; or (ii) Appendix 2 to the Protocol (which is intended to top up agreements made pursuant to the March 2013 Protocol), we must provide our March 2013 Protocol ALID below: Altimeter said such huge investments "in an unknown future is super-sized and terrifying, even by Silicon Valley standards". A ltimeter Growth Corp. 2, the second blank check company formed by Altimeter Capital targeting the tech sector, filed on Thursday with the SEC to raise up to $200 million in an initial public. When you were with me in December, you said that you had picked some more of that up along with Snowflake. I have deep respect and admiration for founders that continue to grind, inspire, and invent long after the financial motivation is gone. 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. 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. At the same time that Meta ramped up spend, you lost the confidence of investors. You know how to time markets. Today, the cost of capital has radically changed, and so has Metas growth rate. "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. Ultimately, we and the Board necessarily must share the same objective: maximizing long-term value creation for United's stockholders, customers, and employees. 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. 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. 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. 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. Meta reported in February that Reality Labs lost $13.72 billion in 2022. It can do great this, the business can be incredible. As always, we welcome the opportunity to engage in further discussions focused on this shared objective. Altimeter Capital owns about 2.46 million Meta shares. With the gains posted on March 3, Meta Platforms shares are up 54% this year. GERSTNER: Right Scott so that you know I started off by saying you know we've been beaten up this year like everybody else because I was covering shorts as we approach the five-year average. We certainly our base case, as you know, was a soft landing four to five rate hikes into this year. We also reference original research from other reputable publishers where appropriate. Altimeter Capital owns a stake of about $320 million, according to the Wall Street Journal, but that only equates with a 0.1% share of the company, according to Meta's latest filings with the. Days Trial. Meta stock is down over 61% in 2022. 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. It did not specify which of Alitmeter's SPACs Grab was in talks with. And we are confident that your long-term investments in AI and the next generation of communications will continue to drive us all forward. They just announced that they're going to be profit, full company profitable by 2023. 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. The deal values the combined company at $35 billion and will. This will alert our moderators to take action. According to Hedge Follow, it was authored by Brad Gerstner, CEO and founder of technology investment firm Altimeter Capital. Following is the unofficial transcript of a CNBC exclusive interview with Altimeter Capital Founder & CEO Brad Gerstner on CNBC's "Closing Bell: Overtime" (M-F, 4PM-5PM ET) today, Monday, March 14th for the premiere. Its competitor or not its competitor, its closest comp in Southeast Asia Sea Limited is also down over 70%. 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. GERSTNER: Without a doubt the single biggest lever on growth multiples is rates. I have spent over 20 years investing behind some of the worlds great founders who are helping to invent the technologies that move the world forward. The stock is 51% off of its high. 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. 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