Altimeter Growth Corp. 2 raised $400 million in a January IPO. So were Shopify's and so were PayPal. Altimeter Capital Management, LP - International Swaps and Derivatives 2023 CNBC LLC. With SNOW currently trading at $242, that stake is now worth $8.8 billion. Facebook parent Meta Platforms (META) announced that it would reduce selling prices for its Quest virtual reality (VR) headsets. Grab's SPAC Vehicle Altimeter Near Record Low After 28% Dive We can just go through the list, Uber, Facebook, Roblox. After all, why not hire more people and invest in more things when the cost of capital was near zero and growth seemed unlimited? I have deep respect and admiration for founders that continue to grind, inspire, and invent long after the financial motivation is gone. We also reference original research from other reputable publishers where appropriate. What is the metaverse and why are billions of dollars being spent on it? NEW YORK, Nov. 16, 2021 (GLOBE NEWSWIRE) -- H1, which provides the largest global healthcare network that connects healthcare professionals, announced today that it has raised a $100M Series C. What do you think? The Digital Markets Act (DMA) is a groundbreaking European law designed to rein in the power of the gatekeepers of the digital economy. We know Meta has more reach, more relevance, and more incredible opportunities for growth than almost any platform on the planet. Menlo Park, CA 94025 (650) 549-9145 (Name, address, including zip code, and telephone number, including area code, of agent for service) Copies: . 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. That's what makes markets. click here! The comp against IDFA was very difficult in Q1 and will again be difficult in q2. On Oct. 11, Meta announced a new high-end VR headset, the Quest Pro. We believe in this team. In fact, our internet stock index is at a 10-year low and software is back nearly where we were in 2016 before the rerating of software occurred. Altimeter Capital Management LP now owns 2,850,000 shares of the Internet company based in Singapore's stock worth $131,784,000 after purchasing an additional 1,600,000 shares during the last quarter. 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. Stock Radar: 19% from Budget Day! Brad Gerstner's Altimeter Capital has an $8B profit on Snowflake. A new It can do great this, the business can be incredible. 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. It added that VR is "a powerful social platform and creative technology, and the more people with access to it, the better. 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. Altimeter's second tech SPAC Altimeter Growth Corp. 2 files - Nasdaq 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. Enjoy a 7-Day Free Trial Thru Feb 17, 2023! But what is the right amount? 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. An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards. Meta stock is down over 61% in 2022. 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 Protocol: Brad Gerstner - Founder & CEO @ Altimeter Capital - Crunchbase Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Altimeter Capital Management LLC. SEC.gov | HOME +Includes DocuBay and TimesPrime Membership. Based on yesterday's announcement, it seems the Board now agrees that for many years it operated with a suboptimal composition. 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. 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. So, its with some hesitation, but significant conviction, I am sharing an open letter strongly encouraging Meta to streamline and focus its path forward. 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. 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. "Bloomberg Opinion" columnists offer their opinions on issues in the news. This is a business it's trading at 12 times free cash flow, X the meta investment and 18 times including. David Einhorn's: Greenlight Capital. ET on GuruFocus.com Builders Union LLP Buys AppLovin Corp, Match. This compensation may impact how and where listings appear. Limit investment in metaverse / Reality Labs to no more than $5B per year. Potential Choices for HF Roles from Undergrad | Wall Street Oasis b***@altimeter.com. 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. How big is that market? We were wrong. 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). A securities lawyer, Brad Gerstner graduated from HBS in 2000 and joined General Catalyst. Ultimately, Gerstner said, Meta has too many people and is spending too much on capital expenditures. Right. As you know, we are long-term shareholders. 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. 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. Altimeter Capital Management LP lifted its position in shares of SEA by 128.0% during the first quarter. United Stockholders Altimeter Capital and PAR Capital Express Altimeter said such huge investments "in an unknown future is super-sized and terrifying, even by Silicon Valley standards". ", 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%. An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards. CAPEX Investing Aggressively and Responsibly in the Future of AI. 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. This is a business it's grown, it's trading at 28 times free cash flow with 20% growth, that will continue to compound. Capitalizing on the fund's VC success, Gerstner raised $450M for Altimeter Growth Corp (AGCUU), a blank check company IPO targeting the tech sector. If the company were investing $12B per year into this project, then that confusion might not even be a problem. GERSTNER: Well, the first thing I would say is this, set aside SPAC. Tina Sharkey, CEO of SherpaFoundry; former board member of HomeAway; and Can you tell me where that stands now and how you view stocks like that that have gotten absolutely obliterated? 3,30,700 crore) if it cut headcount by at least 20 percent, trimmed capital expenditure by at least $5 billion (roughly Rs. 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. 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. They were buying goods, soccer balls on DICK's Sporting Goods and candles on Williams Sonoma. March 8, 2016 In the back half, you don't have those same comp issues that you have caused by COVID. It did not specify which of Alitmeter's SPACs Grab was in talks with. Can it possibly be worth 100 billion? It's been a big drawdown this year. At first glance, the rules of English capitalization seem simple. At $20-$25B of annual capex, Meta will still be investing market leading amounts to help invent the future of AI. It takes effect in 2023. At $20-$25B of annual capex, Meta will still be investing market leading amounts to help invent the future of AI. Your P/E ratio has fallen from 23x to 12x and now trades at less than half the average P/E of your peers. He joins me live. Altimeter Capital Management is a technology focused investment firm based in Menlo Park, CA and Boston, MA. To put that in perspective, excluding your large metaverse investment, Meta is investing more in capex than Apple, Tesla, Twitter, Snap, and Uber combined! Background [ edit] In 2008, Brad Gerstner founded Altimeter Capital in Boston, Massachusetts. Hedge Fund - Altimeter Capital Management - Insider Monkey You would simply do R&D quietly and investors would focus on the core business and the breakthroughs in AI. To experience the full functionality of the ISDA website, it is necessary to enable Javascript in your Chief Executive Officer Meta layoffs 2022: Cut workforce, spending on metaverse, key investor So I am very unhappy because I've lost money on the deal. 2023 International Swaps and Derivatives Association, Inc. As a result, the team hastily pivoted the company toward the metaverse including a surprise re-naming of the company to Meta. Altimeter Capital. So if you want to bet on the future of growth, Southeast Asia is one of the places you want to bet this is one of the dominant brands, dominant internet platforms, and it's got 7 billion of cash on the balance sheet. Got a confidential news tip? Unlock your 30 days free access to ETPrime now. That could in fact become a tailwind as we get to the back half of the year. CNBC Exclusive: CNBC Transcript: Altimeter Capital Founder & CEO Brad c/o Altimeter Capital Management, LP. 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). [2] The firm focuses on technology investments in both public and private markets globally. March 2013 Protocol ALID: 66704. 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. But as you know, in the first three months of this year, all the high-quality stocks are being destroyed as well. In his open letter, Gerstner asked Meta to cap its expenditure on the metaverse to $5 billion a year from the current announced investment of $10-15 billion. In preparation for its first-ever mass tournament, Chronos will feature a fantasy-theme RPG with the potential to earn prizes and a chance to win based on the classes of playable . But Meta needs to get its mojo back. You can learn more about the standards we follow in producing accurate, unbiased content in our. Meta Shareholder Writes Critical Open Letter, Saying the Company Needs 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. Sincerely, Meta Platforms (META) shares jumped 6% after the tech giantannouncedbig price cuts for its virtual reality (VR) headsets. 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. Round: Series D Description: Ro is a telehealth startup that operates digital health clinics for men's and women's health, along with smoking cessation. Altimeter LLC. Brad Gerstner's Phone Number and Email Last Update. Drew Angerer | Getty Images News | Getty Images, Meta needs to focus on its core business, not the Metaverse, says Sand Hill's Brenda Vingiello. 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 is a hard game. 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. 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 has 24 billion in free cash they're going to generate this year. Meta shareholder wants Facebook parent to cut jobs, spending 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. Remember last year they gave a guide at the beginning of the year they're going to grow at 80%. GERSTNER: Well, first let's talk about what took Facebook down, right? We have $130 oil and $6 gas at the pump. This lack of focus and fitness is obscured when growth is easy but deadly when growth slows and technology changes. So these are different order of magnitude bets. The answer to that is because people are very fearful. See the Top Performing Hedge-Funds > Brad Gerstner . Altimeter Capital Management, - GuruFocus.com If you look at the company, it's now trading at $5 billion enterprise value. What is the rate of increase? Southeast Asian Superapp Grab Could Set SPAC Record 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. But admittedly, you know, nights like tonight we'll we'll get we'll catch a little less sleep. 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. If multiples expand then you have even more upside. Altimeter is based in California and has about $16 billion in . Now you didn't address any of the iOS changes and the revenue hit that Facebook is is assuming from that and those are legitimate changes. 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. It's 3 trillion, right? We simply wanted to further engage and continue sharing our thoughts as an interested shareholder. This letter constitutes, as between each other Adhering Party and us, an Adherence Letter as referred to in the Protocol. [3] In a single quarter, they added 1.4 billion. You know how to time markets. 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. And now we've shot right through the five-year average. Conclusion A Leaner, Faster, More Successful Meta. Brad Gerstner - Founder & Chief Ex.. - Altimeter Capital - ZoomInfo The company explained that its goal has always been to "create hardware that's affordable for as many people as possible to take advantage of all that VR has to offer." 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. Our Standards: The Thomson Reuters Trust Principles. Chief Executive Officer "Time to Get Fit an Open Letter from Altimeter to Mark Zuckerberg (and the Meta Board of Directors).". Board of Directors c/o Chairman Henry L. Meyer III United Continental Holdings, Inc. .