AGCUU went public at $10 on Oct. 1, and closed Tuesday at $11.80. Please refer to the section on cookies in our Website Privacy Policy Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. As always, happy to connect with you and your team. Welcome to "Overtime.". The technology-focused hedge fund with a 0.1% ownership claimed that the company had lost investor confidence as it increased . "Time to Get Fit an Open Letter from Altimeter to Mark Zuckerberg (and the Meta Board of Directors).". Altimeter Capital. This is a leading internet company in Southeast Asia. Consumer confidence is plummeting. The stock today hit a new low under $3. Meta changed its company name from Facebook to better focus on its VR hardware and software and is spending $10 billion per year on the technology. To put that in perspective, excluding your large metaverse investment, Meta is investing more in capex than Apple, Tesla, Twitter, Snap, and Uber combined! This company is perfectly positioned to capitalize on that they have the, the ad network to monetize it. As you know, we are long-term shareholders. 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. Chronos: Dawn of Time Launches First-ever Tournament Over the last three years, Meta has also dramatically increased its capital expenses. 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. I've got some people including a guy coming up in a little while Mike Wilson who suggested at this point bonds may be a better deal than stocks. I can't tell you what's going to happen the next three days or the next three weeks or even three months. This Supreme Court Case Could Redefine Crime, YellowstoneBackers Wanted to Cash OutThen the Streaming Bubble Burst, How Countries Leading on Early Years of Child Care Get It Right, Female Execs Are Exhausted, Frustrated and Heading for the Exits, More Iranian Schoolgirls Sickened in Suspected Poisoning Wave, No Major Offer Expected on Childcare in UK Budget, Oil Investors Get $128 Billion Handout as Doubts Grow About Fossil Fuels, Climate Change Is Launching a MutantSeed Space Race, This Former Factory Is Now New Taipeis Edgiest Project, What Do You Want to See in a Covid Memorial? Altimeter Capital Management is a technology focused investment firm based in Menlo Park, CA and Boston, MA. Altimeter Capital Company Profile | Management and Employees List If you have a two-to-three-year time horizon, there is no doubt there are a lot of stocks that are going to be up well over 100% off this bottom. WAPNER: I know I know you're not happy about it. We simply wanted to further engage and continue sharing our thoughts as an interested shareholder. 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. Published Jan 7, 2021 6:11AM EST A ltimeter Growth Corp. 2, the second blank check company formed by Altimeter Capital targeting the tech sector, raised $400 million by offering 40 million. Altimeter Capital's Brad Gerstner Issues Open Letter to Meta (META) and 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. 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. Today, the cost of capital has radically changed, and so has Metas growth rate. Meta can get its mojo back, says Brad Gerstner, but it will have to take some hard decisions first. So listen, I'm not happy about it. I don't think the Fed is going to throw away two years' worth of work to try to avoid a recession in a election year and run us straight into the teeth of a recession while we're trying to fight a war in Europe. 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. We have no stimulus checks. Altimeter Capital Chair and CEO Brad Gerstner, in an open letter to the company, said Meta has too many employees and is moving too slowly to retain the confidence of investors. On top of that we had supply chain challenges. 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. So I am very unhappy because I've lost money on the deal. And Meta certainly has abundant financial resources to invest and / or return to shareholders. 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. The silver lining is that unlike many companies, this popular narrative obscures the truth. Altimeter Capital Management, LP Buys Opendoor Technologies Inc, Toast Inc, Duolingo Inc, Sells . As you know, we are long-term shareholders. 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. Remember last year they gave a guide at the beginning of the year they're going to grow at 80%. 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. "New Prices for Meta Quest 2s 256GB SKU + Meta Quest Pro. 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. To read full story, subscribe to ET Prime, Billed annually at 'Super-Sized and Terrifying': Zuckerberg's $100B Metaverse Gamble 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. Meta Platforms (META) shares jumped 6% after the tech giantannouncedbig price cuts for its virtual reality (VR) headsets. We were about 30% to 40% depending upon which basket you looked at software internet above the five-year average. 2,06,700 crore) a year and capped annual investment in the metaverse to $5 billion (roughly Rs . 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. Let me tell you the bear case on Facebook, okay, the bear case on Facebook and other ad models like Google is that we're running headlong into a massive recession. Days Trial. Meta (Facebook) Begins Biggest Layoffs in Company's History, Meta (META) Connect Conference Key Takeaways, Meta (Facebook) Shares Slammed as Earnings, Spending Disappoint. 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. It can do great this, the business can be incredible. Grab Holdings Looking to Go Public Through SPAC Merger Altimeter is focused on technology investment, and has found multi-billion-dollar success. I think they have to take a look at their capital allocation plan. I said IDFA which is the Apple changes right? 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: The conventional wisdom press and investor is that the core business hit a wall last fall. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. 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. The reductions for the Quest Pro start March 5 in the U.S. and Canada, and on March 15 in other countries where it is supported. It's our largest position we're not selling but we acknowledge that it's been rough for our investors, rough for us. How big are the margins, ultimately Snowflake will be worth a lot more because there is almost endless demand for the product and this is a business that is highly profitable. 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. If the company were investing $12B per year into this project, then that confusion might not even be a problem. Popular Searches. 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. ", 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%. Altimeter Capital - Portfolio - Index Look at another one that I know is in your book or at least it was Roblox is down 74% from its 52-week high. 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. 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%. 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. It takes effect in 2023. Altimeter Capital launched its two SPACs in October and January, raising a combined $850 million between the two blank-check vehicles. Over time, we intend to share with United's stockholders our detailed analysis, which has led us to conclude, among other things, that: Regrettably, our efforts have led to our complete loss of confidence in the current Board, and to our firm determination that meaningful, stockholder-directed Board change is urgently required to serve the long-term best interests of United's stockholders, customers, and employees. In fact, we distributed over $6 billion worth of Snowflake to our venture investors last year. The Wall Street Journal reported on Thursday that Grab was in talks with Altimeter. Finally, Prudential PLC lifted its . 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. Conclusion A Leaner, Faster, More Successful Meta. As a result, the team hastily pivoted the company toward the metaverse including a surprise re-naming of the company to Meta. Potential Choices for HF Roles from Undergrad | Wall Street Oasis Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. These times are what try people if you dig a hole and get into the hole here at the bottom after having lost, you know, my sense is you're locking in losses that you're going to come to regret. Altimeter Capital Management is a hedge fund with 17 clients and discretionary assets under management (AUM) of $17,950,309,162 (Form ADV from 2022-05-27). Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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. Revenue. Over the last three years, Meta has also dramatically increased its capital expenses. Superficial change in panicked response to rigorous scrutiny is hardly noble or a basis for stockholders to have confidence in your judgment. 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. 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. Meta and other large companies have made it very difficult for start-ups to hire. Altimeter's second tech SPAC Altimeter Growth Corp. 2 files - Nasdaq Can they maintain their growth momentum? In fact, we believe that augmented and artificial intelligence has the potential to drive more economic productivity than the internet itself. Why 20%? Brad Gerstner's Phone Number and Email Last Update. Facebook parent Meta Platforms (META) announced that it would reduce selling prices for its Quest virtual reality (VR) headsets. Do they want to stand with me and ride that out? I mean, we're talking about billions of dollars in revenue but you left that out. 2550 Sand Hill Road, Suite 150. 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. At least one big investor is calling for Mark Zuckerberg to throw in Capitalization Rules-A Quick Guide | Grammarly 2-Year If they just take the incremental cash they're going to generate this year and buy back shares that's 6% of the company Scott, let alone the 50 billion in cash they have sitting on the balance sheet. And notably, this decline in share price mirrors the lost confidence in the company, not just the bad mood of the market. Updated on September 30, 2022. Altimeter Capital Management LP lifted its position in shares of SEA by 128.0% during the first quarter. We are generally patient investors. While the increased AI investment was clearly well timed, Metas investment in the metaverse, while smaller than the AI investment, has gotten the most attention and has led to much confusion. 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. Meta and other large companies have made it very difficult for start-ups to hire. A Division of NBCUniversal. Can you tell me where that stands now and how you view stocks like that that have gotten absolutely obliterated? Like many other companies in a zero rate world Meta has drifted into the land of excess too many people, too many ideas, too little urgency. If Meta was able to control those costs, he said, then it could double its free cash flow and improve its share price. It's been a half century since Australia and China established formal relations, but neither side is really celebrating. 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. You would simply do R&D quietly and investors would focus on the core business and the breakthroughs in AI. And what is going to be the resolution to the situation in the Ukraine? We have not made this difficult decision lightly, but after thorough, serious, and objective analysis, we feel compelled to act. Southeast Asian Superapp Grab Could Set SPAC Record Hedge Fund Manager. These are not numbers on a spreadsheet. 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. Altimeter and PAR believe these experienced professionals can bring meaningful experience, objective oversight, and powerful change to United. Ranked #76 out of 483 Hedge Fund Managers. Altimeter Capital Management LLC. We want to hear from you. 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. Tina Sharkey, CEO of SherpaFoundry; former board member of HomeAway; and This is a company that only did 1.2 billion in revenue last year. Altimeter Capital Management, LLC. In the last 18 months, Meta stock is down 55% (compared to an average of 19% for its big-tech peers). That stuff was being advertised on Instagram. c/o Altimeter Capital Management, LP. Altimeter Capital Management is an investment firm with offices in Menlo Park, CA, and Boston, MA. 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. I would take it a step further and argue that these incredible companies would run even better and more efficiently without the layers and lethargy that comes with this extreme rate of employee expansion. And I think they have to execute against the underlying operations in the business. So no, these issues are rea,l what's going on in Russia is real, what's going on in Europe is real. ALTIMETER CAPITAL MANAGEMENT, LP Top 13F Holdings - WhaleWisdom.com What is the Fed going to do? 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. We dont have any demands. Ultimately, we and the Board necessarily must share the same objective: maximizing long-term value creation for United's stockholders, customers, and employees. . Or it's well over a trillion, Microsoft 3 trillion. We do not take job reductions lightly. 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. Metas core business is one of the largest and most profitable in the world with over $45 B in operating profits last year alone. Meta Slashes Prices for VR Headsets 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. Altimeter said such huge investments "in an unknown future is super-sized and terrifying, even by Silicon Valley standards". Drew Angerer | Getty Images News | Getty Images, Meta needs to focus on its core business, not the Metaverse, says Sand Hill's Brenda Vingiello. 15 The industry leader for online information for tax, accounting and finance professionals. Advertisement Gerstner, through Altimeter, manages over $15.0 billion worth of investments across private equity and venture capital. It can compound its earnings and this that and the other but I need to know can it get back to that level. We have $130 oil and $6 gas at the pump. Social networking is the use of internet-based social media platforms to make connections and share various media with friends, family, colleagues, or customers. Hedge Fund - Altimeter Capital Management - Insider Monkey Altimeter Capital Portfolio Investments, Altimeter Capital Funds In short, Meta needs to get fit and focused. An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards. After the pandemic, hospitals are now on a strong footing. 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, I am a strong supporter of founder-led companies especially when they have your successful track record of seeing the future. We believe in this team. 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. Grab Reportedly Set to List in US Via SPAC Merger at $35 Billion Valuation Consumer confidence is plummeting. CAPEX Investing Aggressively and Responsibly in the Future of AI. 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," Gerstner wrote. United Stockholders Altimeter Capital and PAR Capital Express Frankly, if I was Sea Limited, if I was Uber, I might be looking at consolidating the business. How big is that market? Steven Cohen's: Point72 Asset Management. 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. 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. 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. It's a better version of Messenger. Altimeter Capital Management LP Top Holdings 13F Filings How many dogs want to eat the dog food? Meta Shareholder Writes Critical Open Letter, Saying the Company Needs
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