And so for us, it's about simplification, reduction of gross and making sure that you consolidate that what you own into your highest conviction ideas whether you're playing at home in your 401k or whether you're doing this professionally. Altimeter's second tech SPAC Altimeter Growth Corp. 2 files - Nasdaq 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. I think the only debate is what is the multiple going to be in three months, in six months, in nine months. Popular Searches. Brad Gerstner's Altimeter Capital has an $8B profit on Snowflake. A new 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. The same is true for Microsoft, right? Your Reason has been Reported to the admin. SCOTT WAPNER: Now let's move to an exclusive interview with a marquee investor who saw the destruction in tech coming, Altimeter Capital's founder and CEO Brad Gerstner. Got a confidential news tip? Before we we move, what do I do with Facebook? 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. 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.. Comprender el funcionamiento social, poltico, econmico, cultural y natural de la sociedad a fin de reflexionar, hacer propuestas y asumir compromiso en torno a las polticas de desarrollo nacional, local y regional en el mbito del respeto de los derechos humanos, la integracin econmica y la convivencia social, bajo una concepcin de desarrollo humano sostenible. Meta changed its company name from Facebook. You probably know you should capitalize proper nouns and the first word of every sentence. Altimeter Feb 2021 - Present2 years 2 months New York, United States Chris is a Partner at Altimeter on the private investing team where he focuses on investing in iconic late stage technology. It's also a vote of less confidence about the company's ambitions in the world of virtual and augmented reality. In an open letter to CEO Mark Zuckerberg on Monday, shareholder Altimeter Capital Management urged Meta Platforms Inc., the parent company of Facebook, to streamline by eliminating positions and capital expenditures. If you look at the company, it's now trading at $5 billion enterprise value. Meta layoffs 2022: Cut workforce, spending on metaverse, key investor They are people with families and kids to support. It's interesting that now today you say we're in the neighborhood of a tradable bottom. Meta reported in February that Reality Labs lost $13.72 billion in 2022. 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. With that said, we have a shortage of talent in Silicon Valley. Altimeter is based in California and has about $16 billion in . Brad Gerstner, Founder and CEO of Altimeter Capital; former board member of Orbitz Worldwide; So take Snowflake as an example. 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%. 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. "An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards," Gerstner wrote. "If the company were investing $1-2B per year into this project, then that confusion might not even be a problem.". That's what makes markets. GERSTNER: Scott, thanks for having me. We further understand that ISDA assigned a unique identification code or ALID to each adherence letter that was accepted for the August 2012 Protocol or the March 2013 Protocol and that, in order to amend a Protocol Covered Agreement pursuant to: (i) Appendix 1 to this Protocol (which is intended to top up agreements made pursuant to the August 2012 Protocol), we must provide our August 2012 Protocol ALID below; or (ii) Appendix 2 to the Protocol (which is intended to top up agreements made pursuant to the March 2013 Protocol), we must provide our March 2013 Protocol ALID below: This compensation may impact how and where listings appear. David Einhorn's: Greenlight Capital. 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? GERSTNER: Well, first let's talk about what took Facebook down, right? Brad Gerstner - Founder & CEO @ Altimeter Capital - Crunchbase We agree to pay a one-time fee of $500 to ISDA at or before the submission of this Adherence Letter. Brad Gerstner You would simply do R&D quietly and investors would focus on the core business and the breakthroughs in AI. Altimeter Capital Management, LP - International Swaps and Derivatives See here for a complete list of exchanges and delays. Focusing the Metaverse: the Next Generation of Communication and Collaboration. No matter how a company came public in 2021, let alone December of 2021, right, they've been obliterated. Barney Harford, former CEO of Orbitz Worldwide; former board member of Orbitz Worldwide and eLong; To put that in perspective, excluding your large metaverse investment, Meta is investing more in capex than Apple, Tesla, Twitter, Snap, and Uber combined! 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. Meta Shareholder Asks Firm to Cut Jobs, Spending in Open Letter to CEO 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. It said Grab is expected to raise between. 9/29/2022 1:05 AM. We have $130 oil and $6 gas at the pump. At the start of COVID on March 26th when I felt about like I do today, growth stocks were under assault. He also asked Zuckerberg to cut down on capex and employee expenses. Altimeter is focused on technology investment, and has found multi-billion-dollar success. We've never seen on the order of magnitude of the Marshall Plan at the beginning of COVID. Altimeter Capital Management, LLC - Brad Gerstner - TipRanks So, its with some hesitation, but significant conviction, I am sharing an open letter strongly encouraging Meta to streamline and focus its path forward. As you know, we are long-term shareholders. Amazon Is Closing Its Cashierless Stores in NYC, San Francisco and Seattle, Amazon Pauses Construction on Second Headquarters in Virginia as It Cuts Jobs, Stock Traders Are Ignoring Blaring Bond Alarms, iPhone Maker Plans $700 Million India Plant in Shift From China, Russia Is Getting Around Sanctions to Secure Supply of Key Chips for War. I have spent over 20 years investing behind some of the worlds great founders who are helping to invent the technologies that move the world forward. In the last 18 months, Meta stock is down 55% (compared to an average of 19% for its big-tech peers). The Wall Street Journal reported on Thursday that Grab was in talks with Altimeter. It added that VR is "a powerful social platform and creative technology, and the more people with access to it, the better. GERSTNER: So let's talk for a second about what I called. Enjoy a 7-Day Free Trial Thru Feb 17, 2023! Neither Altimeter, nor any of its affiliates or personnel, offers investment advisory services via the internet. We certainly our base case, as you know, was a soft landing four to five rate hikes into this year. We believe the future lies in AI. There isnt a day that goes by where I dont find myself using Metas products to communicate, to connect, and to entertain still amazed at the power of these services. And notably, this decline in share price mirrors the lost confidence in the company, not just the bad mood of the market. The social media company had in June cut plans to hire engineers by at least 30%, with Zuckerberg warning employees to brace for an economic downturn. After all, why not hire more people and invest in more things when the cost of capital was near zero and growth seemed unlimited? Grab Reportedly Set to List in US Via SPAC Merger at $35 Billion Valuation We understand that the Protocol is designed to amend only those Protocol Covered Agreements between two Adhering Parties that were previously amended pursuant to the terms of the August 2012 Protocol, the March 2013 Protocol or both. In addition, people are confused by what the metaverse even means. Choose your reason below and click on the Report button. 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. 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. 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. PDF QUARTERLY LETTER - Hayden Capital 2023 Benzinga.com. Reels, which is a massive product is going to increase its monetization between now and the end of the year. Even excluding its large metaverse investment, Meta has gone from $15B in annual capex in 2018, 2019, and 2020 to $30B in annual capex in 2022. We were wrong. 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. We want to hear from you. United has a Clear Record of Sustained and Substantial Underperformance: Despite premier, industry-leading strategic assets such as significant scale advantages, strong brand recognition, hubs in key business markets, and membership in the largest global airline alliance United has been the worst-performing U.S. airline stock over the last five years. And what is going to be the resolution to the situation in the Ukraine? All Rights Reserved. Published Jan 7, 2021 6:11AM EST A ltimeter Growth Corp. 2, the second blank check company formed by Altimeter Capital targeting the tech sector, raised $400 million by offering 40 million. Nov. 16, 2021 at 2:38 p.m. United has an Underqualified, Ineffective, and Entrenched Board: While presiding over United's stunning long-term underperformance, we believe that the incumbent Board (and a majority of the newly-expanded 15-person Board): (1) lacks sufficient leadership, expertise, and experience to challenge management and hold management accountable, to direct an operational and financial turn-around, and to maximize stockholder value; (2) has entrenched itself by implementing various mechanisms to financially penalize stockholders for making meaningful Board changes; (3) has failed to adequately align management compensation with stockholder interests; and (4) is too stale to effectively represent stockholders.