All quotes delayed a minimum of 15 minutes. But the fact of the matter is the entire market has evaporated around these types of stocks. In fact, in the most recent quarter, they added 1.4 billion of contracted value. 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. Ultimately, we and the Board necessarily must share the same objective: maximizing long-term value creation for United's stockholders, customers, and employees. Chief Executive Officer It massively distorted multiples on the way in and it's massively distorting multiples on the way out. Market Research. ALTIMETER CAPITAL MANAGEMENT, LP Top 13F Holdings - WhaleWisdom.com But listen, there's massive uncertainty in the world. What is the Fed going to do? 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. As you know, we are long-term shareholders. 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. Meta has spent billions and hired thousands of employees around the world to build the metaverse, which refers to a shared digital environment that uses augmented or virtual reality technology to make it feel more realistic. These include white papers, government data, original reporting, and interviews with industry experts. 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. Data is a real-time snapshot *Data is delayed at least 15 minutes. United Urgently Needs a Course Correction: United's stockholders, customers, and employees deserve better Board governance, better Board leadership, and better Board performance. To put that in perspective, excluding your large metaverse investment, Meta is investing more in capex than Apple, Tesla, Twitter, Snap, and Uber combined! Its founder faces criminal and civil charges and goes to trial in October. Congrats on the new show. 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. 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. 3. It's my job to ask you about it knowing you're not happy about it and you answered the question. 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,. Altimeter. 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. Altimeter Capital owns about 2.46 million Meta shares. 2023 CNBC LLC. Sincerely, We'll see you soon. Altimeter Capital owns approximately 0.11% of Meta. 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? On Oct. 11, Meta announced a new high-end VR headset, the Quest Pro. 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. GERSTNER: Scott, I love that you asked the question. How big is that market? Drew Angerer | Getty Images News | Getty Images, Meta needs to focus on its core business, not the Metaverse, says Sand Hill's Brenda Vingiello. Dear Chairman Meyer and Board Members: We have no more confidence that you will act responsibly in the future (even with yesterday's announcement) than we have evidence that you have done so in the past. We've destroyed over $15 trillion of stock market wealth. So we're in the neighborhood of a tradable bottom. At the same time that Meta ramped up spend, you lost the confidence of investors. 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. Altimeter is focused on technology investment, and has found multi-billion-dollar success. Altimeter Capital Management, LP - International Swaps and Derivatives In fact, we believe that augmented and artificial intelligence has the potential to drive more economic productivity than the internet itself. H1 Raises $100M Series C to Expand Footprint, Make H1 the It's going to do 20 billion in GMV. The technology-focused hedge fund with a 0.1% ownership claimed that the company had lost investor confidence as it increased . Altimeter Capital's Brad Gerstner Issues Open Letter to Meta (NASDAQ: META) and Mark Zuckerberg. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. In a single quarter, they added 1.4 billion. Altimeter Capital Management partner Chris Conforti plans to leave the investment firm, according to people with knowledge of the matter. To experience the full functionality of the ISDA website, it is necessary to enable Javascript in your I think we spent about an hour together. Ram Parameswaran: The Investment Philosophy of an Internet Investor I have been told that Amazon spent far less in total to build AWS. 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. Those decisions include slashing expenditure and reducing headcount, the CEO of Altimeter Capital told Meta founder Mark Zuckerberg in an open letter. We're not in the business of being long or short bonds generally I'd put them on as a hedge against our growth exposure. ISDA fosters safe and efficient derivatives markets to facilitate effective risk management for all users of derivative products. Facebook's revenues in Q1 were lower than people expected. This would double annual FCF and put FCF as a percentage of revenue more in line with Google, Microsoft, and Apple. 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. UPDATE: Altimeter Capital, PAR Capital Issue Letter to United Continental Board - United Airlines Holdings (NASDAQ:UAL) - Benzinga SPY 397.68 0.74% QQQ 293.61 0.83% BTC/USD 22299.46 5.109%. Welcome to "Overtime.". I think, or inflation, I think they're behind the curve on recession. 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. Meta stock is down over 61% in 2022. When you look at these questions, it comes down to this. It did not specify which of Alitmeter's SPACs Grab was in talks with. WAPNER: Man, I love how honest you are and I know our viewers do as well. To put it in perspective, Roblox was a couple percent position for us, right, and Snowflake was a 30% position for us. Right. Get this delivered to your inbox, and more info about our products and services. 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. 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GERSTNER: Well, the first thing I would say is this, set aside SPAC. Kevin Wang - Forbes Rates are going up and we have a war. The purpose of this letter is to confirm our adherence as a Protocol Participant to the ISDA 2021 SBS Top-Up Protocol Agreement as published by the International Swaps and Derivatives Association, Inc. on February 25, 2021 (the Protocol Agreement). Can they maintain their growth momentum? 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. Musk Made a Mess at Twitter. Ultimately, Gerstner said, Meta has too many people and is spending too much on capital expenditures. 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. It's a better version of Messenger. Altimeter Capital launched its two SPACs in October and January, raising a combined $850 million between the two blank-check vehicles. Australian Gold & Copper Ltd. - MarketWatch With that said, we have a shortage of talent in Silicon Valley. You know how to time markets. CNBC Exclusive: CNBC Transcript: Altimeter Capital Founder & CEO Brad Gerstner Speaks with CNBC's Scott Wapner on "Closing Bell: Overtime" Today Published Mon, Mar 14 20225:56 PM EDT Share. 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. With all of that said, we believe the company can responsibly and reasonably reign in capex while continuing to invest aggressively in AI and other critical areas. An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards. You probably know you should capitalize proper nouns and the first word of every sentence. Metas core business is one of the largest and most profitable in the world with over $45 B in operating profits last year alone. 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. This is a company that only did 1.2 billion in revenue last year. Meta Slashes Prices for VR Headsets In fact, we believe that augmented and artificial intelligence has the potential to drive more economic productivity than the internet itself. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. 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.