Investopedia does not include all offers available in the marketplace. 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. I can't tell you what's going to happen the next three days or the next three weeks or even three months. browser. PLAN, Yearly 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. Altimeter Capital - Portfolio - Index 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. Brad Gerstner - Founder & CEO @ Altimeter Capital - Crunchbase Altimeter Capital Management partner Chris Conforti plans to leave the investment firm, according to people with knowledge of the matter. The Digital Markets Act (DMA) is a groundbreaking European law designed to rein in the power of the gatekeepers of the digital economy. Capitalizing on the fund's VC success, Gerstner raised $450M for Altimeter Growth Corp (AGCUU), a blank check company IPO targeting the tech sector. I think you're gonna see monetization gains against IDFA and either way we lap that issue in Q3 and Q4. We understand that the Protocol is designed to amend only those Protocol Covered Agreements between two Adhering Parties that were previously amended pursuant to the terms of the August 2012 Protocol, the March 2013 Protocol or both. Of course, a company that connects nearly three billion users on phone and text must be investing in the next generation of communication. It was being purchased on the Shopify platform and people were using PayPal to check out. Is it done? Right? But what is the right amount? 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. With SNOW currently trading at $242, that stake is now worth $8.8 billion. Protocol: Grab's SPAC Vehicle Altimeter Near Record Low After 28% Dive Of course, a company that connects nearly three billion users on phone and text must be investing in the next generation of communication. We simply wanted to further engage and continue sharing our thoughts as an interested shareholder. Meta Platforms, which is set to report third-quarter results on Wednesday after markets close, declined to comment. Can they maintain their growth momentum? Brenda Yester Baty, Head of Strategic Initiatives at Lennar Corp.; former SVP Revenue Management at Carnival Cruise Lines. The lagging stock price under this Board's control and supervision directly reflects substantial underperformance in terms of operational reliability, customer satisfaction, market share, profitability, and return on invested capital. Top 10 Stocks Held By Altimeter Capital Management LP By any normal company or start up standard, $5 B per year would seem like an extraordinary amount. Dont miss out on ET Prime stories! 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. $6.9 M. committed hundreds of millions of dollars to Sequoia Capital, Altimeter Capital Management and Multicoin . 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. Altimeter Capital's Brad Gerstner Issues Open Letter to Meta (NASDAQ: META) and Mark Zuckerberg. They were buying goods, soccer balls on DICK's Sporting Goods and candles on Williams Sonoma. I remember people asking that question about Amazon. Credit Derivatives Determinations Committees, how to enable I have deep respect and admiration for founders that continue to grind, inspire, and invent long after the financial motivation is gone. Our best guess is that maintenance capex for Meta is less than $10B annually. ISDA 2021 SBS Top-Up Protocol, Adhering Organization: Grab Reportedly Set to List in US Via SPAC Merger at $35 Billion Valuation Can it possibly be worth 100 billion? 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 annual investment in the metaverse to $5 billion instead of the current $10 billion. Altimeter's nominees are: It's a better version of Zoom. These are not numbers on a spreadsheet. 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.. We do not take job reductions lightly. On top of that we had supply chain challenges. Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. 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. And so that will be rolled out in Q2 and Q3. Superficial change in panicked response to rigorous scrutiny is hardly noble or a basis for stockholders to have confidence in your judgment. It's 3 trillion, right? 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. AGCUU went public at $10 on Oct. 1, and closed Tuesday at $11.80. [3] The deal values the combined company at $35 billion and will. Grab Holdings Looking to Go Public Through SPAC Merger Form of Letter Agreement between the Registrant, the Sponsor and each director and executive officer of the Registrant. We certainly are neither short-term traders nor activists. The Meta investor recommends a plan to get the company's "mojo back.". 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. 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At Meta, the number of employees is up over 3x from 25k to 85k employees in just the last four years! 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. Grab to list in US via $40 bln merger with Altimeter Growth Meta Shareholder Writes Critical Open Letter, Saying the Company Needs We have not made this difficult decision lightly, but after thorough, serious, and objective analysis, we feel compelled to act. United Continental Holdings, Inc. They're building their own ad platform, right, that can deal with this. 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. And so, for our LPs, the bet is simple. If they do it, I think the stock can be up over 50% between now and the end of the year. Meta stock is down over 61% in 2022. Enjoy a 7-Day Free Trial Thru Feb 17, 2023! So, it doesn't surprise me at all that buyers are on the sidelines and that sellers and short sellers are having a field day with stocks. JavaScript in your web browser. What is the connection between those three companies. 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 About Kevin Wang. 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. We think both of those are solvable. That's because enterprises love their product. I think, or inflation, I think they're behind the curve on recession. And then take that part of the world. 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. With all of this said, we truly believe that the company should be making some of these important investments. The company has lost investor confidence as it ramped up spending and pivoted to the metaverse, the technology-focused hedge fund with a 0.1% stake said, and suggested a three-step plan. Updated on September 30, 2022. It said Grab is expected to raise between. 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. 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. "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. As a result, the team hastily pivoted the company toward the metaverse including a surprise re-naming of the company to Meta. In the last 18 months, Meta stock is down 55% (compared to an average of 19% for its big-tech peers). 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. Conclusion A Leaner, Faster, More Successful Meta. At the end of the second quarter this year, Altimeter Capital held more than 2 million shares of Meta. 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. A letter addressed to Zuckerberg and the board of directors was published on Oct. 24. To put that in perspective, excluding your large metaverse investment, Meta is investing more in capex than Apple, Tesla, Twitter, Snap, and Uber combined! The conventional wisdom press and investor is that the core business hit a wall last fall. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Brad Gerstner's Phone Number and Email Last Update. Finally, Prudential PLC lifted its . But I am confident these companies like Snowflake, like Uber, like Facebook are going to be worth more than they are today at significantly more if you look out two years. We dont have any demands. Moreover, I am a strong supporter of founder-led companies especially when they have your successful track record of seeing the future. UPDATE: Altimeter Capital, PAR Capital Issue Letter to United Altimeter Capital - Wikipedia Global Business and Financial News, Stock Quotes, and Market Data and Analysis. We believe in this team. Ultimately, Gerstner said, Meta has too many people and is spending too much on capital expenditures. March 8, 2016 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. The technology-focused hedge fund with a 0.1% ownership claimed that the company had lost investor confidence as it increased . If the deal goes through, it. 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. Right? I don't think there's any chance that the Fed is going to raise rates 10 times this year. Altimeter Capital is an American investment firm based in Boston, Massachusetts and Menlo Park, California. They may never get back to the levels at which they traded before. Altimeter.com is Altimeter's only website. The same is true for Microsoft, right? So first, you need to understand why did we see a deceleration of revenue because that informs why we're going to see a reacceleration in the back half of this year. Chris Conforti - Partner - Altimeter | LinkedIn ET on GuruFocus.com Builders Union LLP Buys AppLovin Corp, Match. Consumer confidence is plummeting. Meta shareholder Altimeter urges Facebook parent to cut down jobs, expenses Metas core business is one of the largest and most profitable in the world with over $45 B in operating profits last year alone. Drew Angerer | Getty Images News | Getty Images, Meta needs to focus on its core business, not the Metaverse, says Sand Hill's Brenda Vingiello. It massively distorted multiples on the way in and it's massively distorting multiples on the way out. And I think they have to execute against the underlying operations in the business. 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. Headquarters Location One International Place Suite 2400 Boston, Massachusetts, 02110, United States 617-310-6180 Suggest an edit With all of this said, we truly believe that the company should be making some of these important investments. When exactly did you determine that the Board was so inadequate as to need four new directors, all at once, and without an annual meeting or a stockholder vote? Despite public skepticism at times warranted we have been supporters of the companys strategy to continuously reinvest in a product-led future and its mission to make the world more open and connected. Altimeter Capital owns about 2.46 million Meta shares. Sincerely, 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? When you were with me in December, you said that you had picked some more of that up along with Snowflake. We'll see you soon. Data is a real-time snapshot *Data is delayed at least 15 minutes. Copyright 2023 Bennett, Coleman & Co. Ltd. All rights reserved. Whether it is making Whatsapp more seamless or making content and ads more useful on Instagram, Reels and Facebook AI is a globally scarce resource that already is driving noticeable improvements for Metas three billion customers and advertisers. 3. Portfolio Gain +273.45%. How big is that market? It's a better version of Messenger. But I think if you have a time horizon over the course of the one to three years, we see a lot of stocks in our universe that we not only think are going to end the year higher, but we think are going to be multiples higher as we look out over the next two to three years. We want to hear from you. Nov. 16, 2021 at 2:38 p.m. 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. You know, I said on Twitter a few weeks ago, I don't think the Fed's behind the curve on rates. Even excluding its large metaverse investment, Meta has gone from $15B in annual capex in 2018, 2019, and 2020 to $30B in annual capex in 2022. They are people with families and kids to support. Further strengthening our own conclusions, your seemingly desperate actions yesterday appear as a transparent and cynical attempt to maintain your official privileges and power, despite your long historical record of deficient oversight on behalf of stockholders. 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. But the fact of the matter is the entire market has evaporated around these types of stocks. Before we we move, what do I do with Facebook? That's the asymmetry. Prior to Octahedron, Ram was a partner and portfolio manager at Altimeter Capital, a multi-billion dollar investment firm . 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. Search ISDA ISDA fosters safe and efficient derivatives markets to facilitate effective risk .