altimeter capital letter
AGCUU went public at $10 on Oct. 1, and closed Tuesday at $11.80. Updated on September 30, 2022. We believe that our conclusion is shared by many of United's long-suffering stockholders, customers, and 80,000+ dedicated employees. The cumulative benefit of the recommended adjustments outlined above would increase FCF by at least $20B in 2023 ($10B from people-related expense reduction, $5B from capex reduction, and $5B from reduced metaverse spend). Ranked #76 out of 483 Hedge Fund Managers. Right? This is expected to facilitate trade as the West ratchets up sanctions on Russia. The full text of the stockholder letter to the United Board follows: March 8, 2016. 2499 1749, Monthly However, there are few signs that VR or some of the company's metaverse apps, such as Horizon Worlds, are catching on with the public beyond early adopters. The facts are startling. 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. Meta shares moved 6% higher following the announcement. The stock is 51% off of its high. The technology-focused hedge fund with a 0.1% ownership claimed that the company had lost investor confidence as it increased . He said the money the company is currently spending to develop VR could add up for a decade before it comes to fruition. Experience Your Economic Times Newspaper, The Digital Way! And frankly, I was going to play some sound from you from our Delivering Alpha event last September where you called a lot of this but I don't even have to do that anymore because you just went through it. 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. It's my job to ask you about it knowing you're not happy about it and you answered the question. 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. 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. articles a month for anyone to read, even non-subscribers! These times are what try people if you dig a hole and get into the hole here at the bottom after having lost, you know, my sense is you're locking in losses that you're going to come to regret. 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.. And so we add on a fair amount of exposures we entered this year. We dont have any demands. Altimeter is focused on technology investment, and has found multi-billion-dollar success. Before we we move, what do I do with Facebook? Link to 13F filings: SEC filings We certainly our base case, as you know, was a soft landing four to five rate hikes into this year. That's the asymmetry. [2] The firm focuses on technology investments in both public and private markets globally. 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 are confident that these employees will find replacement jobs and quickly be back to work on important inventions that will move us all forward. Are you as optimistic today as you were in months past? And so we're getting hurt like everybody else. CAPEX Investing Aggressively and Responsibly in the Future of AI. Paul A. Reeder Whatever the reason, that is certainly the perception. The firm also considers investments in the consumer products and services, gaming, retail, and transportation sectors. . We were wrong. It massively distorted multiples on the way in and it's massively distorting multiples on the way out. 2023 CNBC LLC. 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. Brad Gerstner, Founder and CEO of Altimeter Capital; former board member of Orbitz Worldwide; 15 9/29/2022 1:05 AM. We believe in this team. Right? 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. 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. Meta said the cost of the Quest 2 will drop $70 to $429.99, while the price of the higher-end Quest Pro will be slashed to $999.99 from $1,499.99. 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. Moreover, I am a strong supporter of founder-led companies especially when they have your successful track record of seeing the future. Altimeter Capital Management, LLC. Revenue. PAR Capital Management, Inc. Do Not Sell My Personal Data/Privacy Policy. 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. They're fearful about what's going to happen with rates. So you know, when I look at what's going on in the business and I try to distill it from the noise, which is what has made us good for 20 years, not following the crowd, not panicking, but really looking at the business. What Does Metaverse Mean and How Does This Virtual World Work? 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. So, its with some hesitation, but significant conviction, I am sharing an open letter strongly encouraging Meta to streamline and focus its path forward. Sign Up. GERSTNER: So let's talk for a second about what I called. The metaverse is a shared virtual environment with aspects of online gaming, augmented reality, and more that people can access via the Internet. 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. This is a region of 700 million plus people. We believe in this team. 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As such, we would encourage the company to move aggressively and cut at least 20% of employee-related expenses by January 1, 2023. 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. We agree to pay a one-time fee of $500 to ISDA at or before the submission of this Adherence Letter. It's our largest position in the book. I don't think there's any chance that the Fed is going to raise rates 10 times this year. ", Medium.com. We know Meta has more reach, more relevance, and more incredible opportunities for growth than almost any platform on the planet. 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. In a single quarter, they added 1.4 billion. "Meta Reports Fourth Quarter and Full Year 2022 Results," Page 10. Altimeter Growth Corp. 2 raised $400 million in a January IPO. As you know, we have attempted to work collaboratively with the current Board to meaningfully improve governance, Board composition, and oversight. Meta Platforms CEO Mark Zuckerberg speaks about the Facebook News feature at the Paley Center For Media in New York on Oct. 25, 2019. What is the metaverse and why are billions of dollars being spent on it? 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. Altimeter Capital Management LP. It added that VR is "a powerful social platform and creative technology, and the more people with access to it, the better. As a result, the team hastily pivoted the company toward the metaverse including a surprise re-naming of the company to Meta. 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 think the only debate is what is the multiple going to be in three months, in six months, in nine months. International Swaps and Derivatives Association. This lack of focus and fitness is obscured when growth is easy but deadly when growth slows and technology changes. He left GC and became co-CEO of NLG, an early online travel start-up purchased in part by IAC.He co-founded Openlist.com, a local search start up that was self-funded and sold to Marchex (Nasdaq: MCHX);He was a partner at PAR Capital, a multi-billion hedge. The offers that appear in this table are from partnerships from which Investopedia receives compensation. So, its with some hesitation, but significant conviction, I am sharing an open letter strongly encouraging Meta to streamline and focus its path forward. What's going to be the inflation print in April? Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more! Of course, a company that connects nearly three billion users on phone and text must be investing in the next generation of communication. About Kevin Wang. If multiples expand then you have even more upside. With all of this said, we truly believe that the company should be making some of these important investments. As a result, the team hastily pivoted the company toward the metaverse including a surprise re-naming of the company to Meta. I think they have to take a look at their capital allocation plan. 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? 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. We're down on the year. 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%. WAPNER: Let me lastly ask you about Grab, the SPAC deal you did, biggest SPAC deal ever of $40 billion. Your P/E ratio has fallen from 23x to 12x and now trades at less than half the average P/E of your peers. 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. Gordon Bethune, former CEO of Continental Airlines; board member of Honeywell, Prudential Financial, and Sprint; Mark Zuckerberg is a self-made billionaire and the CEO of Meta (formerly Facebook), which he co-founded in his dorm room in 2004. But Meta needs to get its mojo back. GERSTNER: Scott, I love that you asked the question. How big are the margins, ultimately Snowflake will be worth a lot more because there is almost endless demand for the product and this is a business that is highly profitable. We also reference original research from other reputable publishers where appropriate. 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. As always, we welcome the opportunity to engage in further discussions focused on this shared objective. You know, I said on Twitter a few weeks ago, I don't think the Fed's behind the curve on rates. 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. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Steven Cohen's: Point72 Asset Management. Facebook's revenues in Q1 were lower than people expected. We did not see this talk of 10 rate hikes and we certainly didn't see a war developing in Europe. Altimeter Growth Corp. raised $450 million in an October 2020 IPO. 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. CAPEX Investing Aggressively and Responsibly in the Future of AI. I have been told that Amazon spent far less in total to build AWS. We're withdrawing trillions off the Fed's balance sheet.