Brad Gerstner, Founder and CEO of Altimeter Capital; former board member of Orbitz Worldwide; 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. The comp against IDFA was very difficult in Q1 and will again be difficult in q2. 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. See here for a complete list of exchanges and delays. And frankly, I was going to play some sound from you from our Delivering Alpha event last September where you called a lot of this but I don't even have to do that anymore because you just went through it. It can do that by making. Meta and other large companies have made it very difficult for start-ups to hire. Altimeter Capital Management partner Chris Conforti plans to leave the investment firm, according to people with knowledge of the matter. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. 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. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Altimeter Capital Management LLC. JavaScript in your web browser. PAR Capital Management, Inc. Do Not Sell My Personal Data/Privacy Policy. Is it done? browser. At first glance, the rules of English capitalization seem simple. 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: Getting Fit Headcount Reduction / Expense Control. According to Hedge Follow, it was authored by Brad Gerstner, CEO and founder of technology investment firm Altimeter Capital. It's my job to ask you about it knowing you're not happy about it and you answered the question. 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. "New Prices for Meta Quest 2s 256GB SKU + Meta Quest Pro. 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. Altimeter Capital Management partner Chris Conforti plans to leave the investment firm, according to people with knowledge of the matter. Altimeter Capital partner Kevin Wang led the firm's investment in cloud data platform Snowflake in 2015 in its $45 million Series C round; he sat on its board until 2020. If Meta was able to control those costs, he said, then it could double its free cash flow and improve its share price. This is a business it's grown, it's trading at 28 times free cash flow with 20% growth, that will continue to compound. As you know, Altimeter Capital Management and PAR Capital Management are long-term United Continental Holdings, Inc. ("United") stockholders that together own approximately 7.1% of United's outstanding common stock. At the start of COVID on March 26th when I felt about like I do today, growth stocks were under assault. 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. But Meta needs to get its mojo back. +Includes DocuBay and TimesPrime Membership. Altimeter Capital's Brad Gerstner Issues Open Letter to Meta (NASDAQ: META) and Mark Zuckerberg. 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. Altimeter Capital Management, LP ("Altimeter") is an SEC-registered investment adviser. What's going to be the inflation print in April? 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. He left GC and became co-CEO of NLG, an early online travel start-up purchased in part by IAC.He co-founded Openlist.com, a local search start up that was self-funded and sold to Marchex (Nasdaq: MCHX);He was a partner at PAR Capital, a multi-billion hedge. It's our largest position we're not selling but we acknowledge that it's been rough for our investors, rough for us. Altimeter Capital launched its two SPACs in October and January, raising a combined $850 million between the two blank-check vehicles. By Altimeter Capital $750M Venture Capital in Feb, 2021 VROOM E-Commerce +2 Total funding $1.2B in 10 rounds from 15 investors By Altimeter Capital $50M Series E in Sep, 2016 Wingz Networking +3 Total funding $13.7M in 4 rounds from 36 investors By Altimeter Capital $11M Series B in Jan, 2016 Altimeter Capital Management, ISDA 2021 SBS Top-Up Protocol - Adherence. 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. 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,. The stock today hit a new low under $3. 10. These are not numbers on a spreadsheet. 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. We think both of those are solvable. Altimeter Capital owns about 2.46 million Meta shares. This would double annual FCF and put FCF as a percentage of revenue more in line with Google, Microsoft, and Apple. You know how to time markets. Brad Gerstner's Phone Number and Email Last Update. My bet is we're gonna have less this year. Focusing the Metaverse: the Next Generation of Communication and Collaboration. So you know, when I look at what's going on in the business and I try to distill it from the noise, which is what has made us good for 20 years, not following the crowd, not panicking, but really looking at the business. 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. . We do not take job reductions lightly. 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. It's good to see you again. So, its with some hesitation, but significant conviction, I am sharing an open letter strongly encouraging Meta to streamline and focus its path forward. HONG KONG (AP) 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 . This company is perfectly positioned to capitalize on that they have the, the ad network to monetize it. And notably, this decline in share price mirrors the lost confidence in the company, not just the bad mood of the market. No matter how a company came public in 2021, let alone December of 2021, right, they've been obliterated. 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. As always, we welcome the opportunity to engage in further discussions focused on this shared objective. And so we add on a fair amount of exposures we entered this year. Ultimately, Gerstner said, Meta has too many people and is spending too much on capital expenditures. We believe in this team. CAPEX Investing Aggressively and Responsibly in the Future of AI. Menlo Park, CA 94025 (650) 549-9145 (Name, address, including zip code, and telephone number, including area code, of agent for service) Copies: . 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? The Meta investor recommends a plan to get the company's "mojo back.". Altimeter is based in California and has about $16 billion in . 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. We believe in this team. I have been told that Amazon spent far less in total to build AWS. 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. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. 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. The firm's private equity arm makes all-stage venture capital investments, primarily in the technology sector. Those decisions include slashing expenditure and reducing headcount, the CEO of Altimeter Capital told Meta founder Mark Zuckerberg in an open letter. But Meta needs to get its mojo back. The industry leader for online information for tax, accounting and finance professionals. WAPNER: Let me lastly ask you about Grab, the SPAC deal you did, biggest SPAC deal ever of $40 billion. 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. Get this delivered to your inbox, and more info about our products and services. 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. ET on GuruFocus.com Builders Union LLP Buys AppLovin Corp, Match. 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. On top of that we had supply chain challenges. It's a better version of Messenger. Altimeter's nominees are: The conventional wisdom press and investor is that the core business hit a wall last fall. "In addition, people are confused by what the metaverse even means," Gerstner wrote. Meta shares moved 6% higher following the announcement. And I think they have to execute against the underlying operations in the business. 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. Days Trial. What do you think? 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. It massively distorted multiples on the way in and it's massively distorting multiples on the way out. At the end of the second quarter this year, Altimeter Capital held more than 2 million shares of Meta. Every company I talked to is tightening its belts. Altimeter Capital owns about 2.46 million Meta shares. We simply wanted to further engage and continue sharing our thoughts as an interested shareholder.
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