Rodney O'Neal, former CEO of Delphi Automotive; former board member of Delphi Automotive, Sprint, and Goodyear; Rates are going up and we have a war. . Kevin Wang - Forbes WAPNER: We're back now with Altimeter Capital's Brad Gerstner hanging out with us at "Overtime" today, You know, we talked about the magnitude Brad by which some of these stocks have come down and I'm looking at the, listen, it's not just Meta, obviously. As always, happy to connect with you and your team. Usually you don't capitalize after a colon, but there are exceptions. United Urgently Needs a Course Correction: United's stockholders, customers, and employees deserve better Board governance, better Board leadership, and better Board performance. We agree to pay a one-time fee of $500 to ISDA at or before the submission of this Adherence Letter. 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. Investors Who Put $2 Billion Into FTX Face Scrutiny, Too If the company were investing $12B per year into this project, then that confusion might not even be a problem. United Continental Holdings, Inc. 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. By any normal company or start up standard, $5 B per year would seem like an extraordinary amount. Meta can get its mojo back, says Brad Gerstner, but it will have to take some hard decisions first. GERSTNER: Scott, I love that you asked the question. August 2012 Protocol ALID: 66703 We did not see this talk of 10 rate hikes and we certainly didn't see a war developing in Europe. It's been a half century since Australia and China established formal relations, but neither side is really celebrating. With Snowflake, the question as to whether or not that business is going to compound, I think is not one that many people will debate. That stuff was being advertised on Instagram. About Kevin Wang. With that said, we have a shortage of talent in Silicon Valley. Ray Dalio's: Bridgewater Associates. Techmeme: Open letter: Altimeter Capital founder and CEO Brad Gerstner 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. The last 10 years have been a unique time in tech and for Meta. To put that in perspective, excluding your large metaverse investment, Meta is investing more in capex than Apple, Tesla, Twitter, Snap, and Uber combined! 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 . 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It's a better version of Zoom. With SNOW currently trading at $242, that stake is now worth $8.8 billion. And as a result, you know, last year we held up better than most because we own high-quality stocks, and we were short lower quality stocks. Email. Altimeter Capital is in talks with ride-hailing company Grab to bring the company public in a $40 billion deal, according to a report from The Wall Street Journal. SPACs notched more than $70 billion so far in 2021, a new record. 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. Meta CTO Andrew Bosworth writes Facebook of old had focus in blog post 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. Why 20%? Superficial change in panicked response to rigorous scrutiny is hardly noble or a basis for stockholders to have confidence in your judgment. 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. Chief Executive Officer 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. Updated on September 30, 2022. All Rights Reserved. It was being purchased on the Shopify platform and people were using PayPal to check out. FREE Breaking News Alerts from StreetInsider.com! 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. Open letter: Altimeter Capital founder and CEO Brad Gerstner encourages Meta to cut capex by $5B+, cut headcount by 20%+, and limit metaverse R&D to $5B/year As you know, we are long-term shareholders. You would simply do R&D quietly and investors would focus on the core business and the breakthroughs in AI. We simply wanted to further engage and continue sharing our thoughts as an interested shareholder. In fact, we believe that augmented and artificial intelligence has the potential to drive more economic productivity than the internet itself. They're building their own ad platform, right, that can deal with this. And Meta certainly has abundant financial resources to invest and / or return to shareholders. We can just go through the list, Uber, Facebook, Roblox. 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. 'Super-Sized and Terrifying': Zuckerberg's $100B Metaverse Gamble At $20-$25B of annual capex, Meta will still be investing market leading amounts to help invent the future of AI. In the last 18 months, Meta stock is down 55% (compared to an average of 19% for its big-tech peers). This letter constitutes, as between each other Adhering Party and us, an Adherence Letter as referred to in the Protocol. Mar 11, 2021 3:07 PM EST. for a description of how we use cookies. WAPNER: I know I know you're not happy about it. These are not numbers on a spreadsheet. I said IDFA which is the Apple changes right? This is a company that only did 1.2 billion in revenue last year. The move comes amid a decline in Meta's VR shipments and pressure from activist shareholders to improve the financial picture of its metaverse division. 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. You do, you do great work, excited for the new show and let's stay after it. We do not take job reductions lightly. I think you're gonna see monetization gains against IDFA and either way we lap that issue in Q3 and Q4. Whatever the reason, that is certainly the perception. 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. Learn the pros and cons of crowdfunding. But the company's dreams have fallen short as the Reality Labs unit, which works on augmented and virtual reality, has continuously reported staggering losses. Is it close to being done? Portfolio Gain +273.45%. About Altimeter Capital PLAN, Access the exclusive Economic Times stories, Editorial and Expert opinion, 90 Days Prime access worth Rs999 unlocked for you, Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors, Stock analysis. Altimeter Capital owns approximately 0.11% of Meta. What is the rate of increase? I think if you said why might these numbers have to come down if we're heading into a recession, the numbers are likely to come down. It's been a big drawdown this year. It's also a vote of less confidence about the company's ambitions in the world of virtual and augmented reality. This heavy equipment maker is a good buy on dips stock; heres why, Tears from smokeless cooking gas as consumers continue to bear price hikes on top of subsidy cuts. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. I mean, two years ago we were we were having this conversation. Credit Derivatives Determinations Committees, how to enable The offers that appear in this table are from partnerships from which Investopedia receives compensation. Following careful consideration, we have firmly concluded that meaningful change to United's existing Board of Directors is urgently required in order to reverse long-standing poor Board governance and the resulting many years of substantial and inexcusable Company underperformance relative to United's competitors. Worse, this skepticism seemed to be affirmed with a nearly-immediate and sizable miss in financial results and continued under-performance throughout 2022. He argued that this was "one of the big reasons behind these price cuts.". Meta Platforms CEO Mark Zuckerberg speaks about the Facebook News feature at the Paley Center For Media in New York on Oct. 25, 2019. As you know, we have attempted to work collaboratively with the current Board to meaningfully improve governance, Board composition, and oversight. 2023 Benzinga.com. How big is that market? Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. I think, or inflation, I think they're behind the curve on recession. So we're in the neighborhood of a tradable bottom. March 2013 Protocol ALID: 66704. Market Research. If they do it, I think the stock can be up over 50% between now and the end of the year. After all, why not hire more people and invest in more things when the cost of capital was near zero and growth seemed unlimited? Home : Altimeter See here for a complete list of exchanges and delays. To experience the full functionality of the ISDA website, it is necessary to enable Javascript in your When you were with me in December, you said that you had picked some more of that up along with Snowflake. Their last reported 13F filing for Q4 2022 included $3,652,571,000 in managed 13F securities and a top 10 holdings concentration of 99.95%. Form of Letter Agreement between the Registrant, the Sponsor and each director and executive officer of the Registrant. Can they maintain their growth momentum? Brad Gerstner, the CEO of Altimeter Capital and a Meta investor, wrote in an open letter to the company in October that Meta needs to "get fit and focused," and he was critical of the hefty. Altimeter Capital Management, ISDA 2021 SBS Top-Up Protocol - Adherence. Our six nominees have the necessary skills, leadership abilities, and relevant experience to catalyze a United course change and to help the Company realize its immense potential. Dont miss out on ET Prime stories! If the deal goes through, it. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Includes DocuBay and TimesPrime Membership. We've never seen on the order of magnitude of the Marshall Plan at the beginning of COVID. The deal values the combined company at $35 billion and will. You know, I said on Twitter a few weeks ago, I don't think the Fed's behind the curve on rates. 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. This will alert our moderators to take action. We know Meta has more reach, more relevance, and more incredible opportunities for growth than almost any platform on the planet. Southeast Asia's Grab in talks for U.S. listing via $40 billion SPAC Altimeter was founded in 2008 and is headquartered out of Boston, Massachusetts. With all of this said, we truly believe that the company should be making some of these important investments. The bottom line is where I wanted to start this whole interview with is you called it. He also asked Zuckerberg to cut down on capex and employee expenses. b***@altimeter.com. According to Hedge Follow, it was authored by Brad Gerstner, CEO and founder of technology investment firm Altimeter Capital. 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. Two years from now, people are going to be looking back and say, why the hell didn't you buy Snowflake at 160 bucks a share? They were cratering ironically, now we're normalizing and growth stocks are down even more than they were at the start of COVID. Popular Searches. 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. 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. Nobody debates whether or not this company is going to be more valuable in the future. 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. To read full story, subscribe to ET Prime, Billed annually at Brad Gerstner I remember people asking that question about Amazon. Altimeter Capital Management, LP ("Altimeter") is an SEC-registered investment adviser. After the pandemic, hospitals are now on a strong footing. The stock today hit a new low under $3. 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. We also reference original research from other reputable publishers where appropriate. ISDA 2021 SBS Top-Up Protocol, Adhering Organization: I'm not a seller. Altimeter manages a long / short public equity fund and private growth equity funds. 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). The vast majority of the capex has been an essential and high-returning investment in data centers, Nvidia GPUs and other AI resources to solidify the companys position as one of worlds leaders in AI. By any normal company or start up standard, $5 B per year would seem like an extraordinary amount. 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. It's 3 trillion, right? 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. 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. Altimeter said annual free cash flow can be doubled to $40 billion (roughly Rs. I don't think they can. 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. So take Snowflake as an example. In the last 18 months, Meta stock is down 55% (compared to an average of 19% for its big-tech peers). Brad Gerstner - Founder & CEO @ Altimeter Capital - Crunchbase
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