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. What do you think? 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. We want to hear from you. And frankly, they weren't a very good hedge because bonds haven't moved all that much but gross stocks are down 60, 70, as you mentioned, down over 80%. At Meta, the number of employees is up over 3x from 25k to 85k employees in just the last four years! Potential Choices for HF Roles from Undergrad | Wall Street Oasis By any normal company or start up standard, $5 B per year would seem like an extraordinary amount. Moreover, I am a strong supporter of founder-led companies especially when they have your successful track record of seeing the future. 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." Altimeter.com is Altimeter's only website. 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. effective risk management for all users of derivative products. The letter is the latest sign that Meta investors are starting to express reservations about the company's recent performance. 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. You would simply do R&D quietly and investors would focus on the core business and the breakthroughs in AI. Crowdfunding is the use of small amounts of capital from a large number of people to raise money or fund a business. "In addition, people are confused by what the metaverse even means," Gerstner wrote. Altimeter Capital's Brad Gerstner calls on Meta to slash headcount 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. The changes for the Quest 2 begin Sunday, March 5. Home : Altimeter Investopedia requires writers to use primary sources to support their work. Limit investment in metaverse / Reality Labs to no more than $5B per year. It's a better version of Messenger. Sea Limited (NYSE:SE) Shares Bought by Capital International Ltd. CA 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. That's the asymmetry. PDF QUARTERLY LETTER - Hayden Capital What am I supposed to think about that? Grab to list in US via $40 bln merger with Altimeter Growth The last 10 years have been a unique time in tech and for Meta. United Urgently Needs a Course Correction: United's stockholders, customers, and employees deserve better Board governance, better Board leadership, and better Board performance. 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. 15 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. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Form of Letter Agreement between the Registrant, the Sponsor and each director and executive officer of the Registrant. Following is the unofficial transcript of a CNBC exclusive interview with Altimeter Capital Founder & CEO Brad Gerstner on CNBC's "Closing Bell: Overtime" (M-F, 4PM-5PM ET) today, Monday, March 14th for the premiere. CAPEX Investing Aggressively and Responsibly in the Future of AI. Board of Directors 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. We'll see you soon. [2] The firm focuses on technology investments in both public and private markets globally. So we believe not only you're going to get dramatically accelerated earnings, right, we think they're going to be a little bit more cautious about how they're spending those meta investment dollars, how they're spending dollars across the business. The answer to that is because people are very fearful. And, while that ultimately is an important long-term measure of success for all of Metas stakeholders, it would be imprudent to make short-term bad decisions just to improve the share price. All Rights Reserved. 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. 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. Chase Coleman's: Tiger Global Management. Based on yesterday's announcement, it seems the Board now agrees that for many years it operated with a suboptimal composition. Right? Days Trial 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. We are confident that these employees will find replacement jobs and quickly be back to work on important inventions that will move us all forward. ", 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%. 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. We know Meta has more reach, more relevance, and more incredible opportunities for growth than almost any platform on the planet. Gordon Bethune, former CEO of Continental Airlines; board member of Honeywell, Prudential Financial, and Sprint; 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. It's a better version of Zoom. GERSTNER: Scott, thanks for having me. Can they maintain their growth momentum? 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. 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. I think the only debate is what is the multiple going to be in three months, in six months, in nine months. Sign up for free newsletters and get more CNBC delivered to your inbox. This is a region of 700 million plus people. Brad Gerstner is the Founder & Chief Executive Officer at Altimeter Capital based in Boston, Massachusetts. 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. PLAN, Yearly So we're in the neighborhood of a tradable bottom. Metas core business is one of the largest and most profitable in the world with over $45 B in operating profits last year alone. Chronos: Dawn of Time Launches First-ever Tournament In fact, we believe that augmented and artificial intelligence has the potential to drive more economic productivity than the internet itself. And I think they have to execute against the underlying operations in the business. 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. In Q1 of 2021, everybody was sitting on their couch. Altimeter Capital owns about 2.46 million Meta shares. Hedge Fund - Altimeter Capital Management - Insider Monkey Remember last year they gave a guide at the beginning of the year they're going to grow at 80%. 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. Altimeter Capital Management, LLC a Portfolio Activity as reported in the most recent 13F form published on Dec 31, 2022. Grab's SPAC Vehicle Altimeter Near Record Low After 28% Dive "An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards," Gerstner wrote. "In short, Meta needs to get fit and focused.". Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more! Brad Gerstner, Founder and CEO of Altimeter Capital; former board member of Orbitz Worldwide; Altimeter Capital Chair and CEO Brad Gerstner said in an open letter to the company and CEO Mark Zuckerberg on Monday that Meta has too many employees and is moving too slowly to retain the confidence of investors. 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. Link to 13F filings: SEC filings Our Standards: The Thomson Reuters Trust Principles. I just happen to look at a Snowflake it's in front of me and because it's your largest position, I say can Snowflake really get back to its 52-week high of $405 a share. 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. 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. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. How big is that market? United Continental Holdings, Inc. Grab Reportedly Set to List in US Via SPAC Merger at $35 Billion Valuation Drew Angerer | Getty Images News | Getty Images, Meta needs to focus on its core business, not the Metaverse, says Sand Hill's Brenda Vingiello. We're withdrawing trillions off the Fed's balance sheet. All quotes delayed a minimum of 15 minutes. He also asked Zuckerberg to cut down on capex and employee expenses. Meta Platforms CEO Mark Zuckerberg speaks about the Facebook News feature at the Paley Center For Media in New York on Oct. 25, 2019. Meta. Recently Active; Top Discussions; Best Content; WSO Media; BY INDUSTRY; Investment Banking Meta shareholder Altimeter urges Facebook parent to cut down jobs, expenses We have little doubt investors and others would happily support scaling up these investments as the ROI becomes more tangible even if still long-term. It said Grab is expected to raise between. Email. Altimeter Capital Management LP Info Size ($ in 1000's) At 12/31/2022: $3,652,571 At 09/30/2022: $4,676,285 Altimeter Capital Management LP holdings changes, total fund size, and other information presented on HoldingsChannel.com was derived from Altimeter Capital Management LP 13F filings. Conclusion A Leaner, Faster, More Successful Meta. Ro $500.0M. Popular Searches. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, This Week in Crypto: Ukraine War, Marathon Digital, FTX. 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. WAPNER: So let me talk about your overall exposure if I if I could because by last December, you had said you had taken most of your your shorts off and your long exposure was back up to 70%.