Altimeter is based in California and has about $16 billion in . After the pandemic, hospitals are now on a strong footing. It's my job to ask you about it knowing you're not happy about it and you answered the question. Think about this, Scott. We also reference original research from other reputable publishers where appropriate. "An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards," Gerstner wrote. It can do that by making. ISDA fosters safe and efficient derivatives markets to facilitate 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 . FalconX Raises $210M Following 30x YoY Revenue Growth; Now Valued at $3.75 Billion Series C Led by Altimeter Capital, B Capital Group, Sapphire Ventures, and Tiger Global Management, with. 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. And we've had government intervention of the magnitude. It can compound its earnings and this that and the other but I need to know can it get back to that level. 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. 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. effective risk management for all users of derivative products. It will get there three years from now because it's free cash flow margin will continue to expand and if you just get it, give it the multiples that are currently in the market, right, that have already drawn down on free cash flow, you get to that 3X that I quoted. About Altimeter Capital Altimeter is a leading technology focused investment firm based in Silicon Valley with over $15 billion in assets from endowments, foundations, and family offices. Over the last three years, Meta has also dramatically increased its capital expenses. 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. See here for a complete list of exchanges and delays. The stock is 51% off of its high. 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." You know, I said on Twitter a few weeks ago, I don't think the Fed's behind the curve on rates. Musk Made a Mess at Twitter. Meta shares moved 6% higher following the announcement. Get your daily dose of business updates on WhatsApp. This is a company that only did 1.2 billion in revenue last year. This lack of focus and fitness is obscured when growth is easy but deadly when growth slows and technology changes. In fact, in the most recent quarter, they added 1.4 billion of contracted value. But Meta needs to get its mojo back. We do not take job reductions lightly. And notably, this decline in share price mirrors the lost confidence in the company, not just the bad mood of the market. Portfolio Gain +273.45%. Usually you don't capitalize after a colon, but there are exceptions. Before we we move, what do I do with Facebook? PLAN. WAPNER: I hear you. +Includes DocuBay and TimesPrime Membership. Is it done? 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.. While the increased AI investment was clearly well timed, Metas investment in the metaverse, while smaller than the AI investment, has gotten the most attention and has led to much confusion. Altimeter Capital Management partner Chris Conforti plans to leave the investment firm, according to people with knowledge of the matter. They're fearful about what's going to happen with rates. Chief Executive Officer Tina Sharkey, CEO of SherpaFoundry; former board member of HomeAway; and It's going to do 20 billion in GMV. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. We also believe Metas investment in AI will lead to exciting and important new products that can be cross-sold to billions of customers. That stuff was being advertised on Instagram. Social networking is the use of internet-based social media platforms to make connections and share various media with friends, family, colleagues, or customers. Panel led by former SC judge to include NaBFID chair KV Kamath and Infys Nandan Nilekani. Altimeter Capital Management LP. 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. Market Research. As you know, we are long-term shareholders. Right? Indias general insurers are looking to set up a larger marine insurance pool to cover the risks of transporting crude oil, edible oil, project machinery and fertiliser from the war-torn Russia-Ukraine region. We have no stimulus checks. Those decisions include slashing expenditure and reducing headcount, the CEO of Altimeter Capital told Meta founder Mark Zuckerberg in an open letter. Altimeter Capital partner Kevin Wang led the firm's investment in cloud data platform Snowflake in 2015 in its $45 million Series C round; he sat on its board until 2020. We agree to pay a one-time fee of $500 to ISDA at or before the submission of this Adherence Letter. If Meta was able to control those costs, he said, then it could double its free cash flow and improve its share price. . Samooha, a startup developing a "cross-cloud" data collaboration platform, today announced that it raised $12.5 million in a funding tranche backed by Altimeter Capital and Snowflake Ventures . Ram Parameswaran is the founder of Octahedron Capital, a global, growth-oriented investment firm that seeks to make concentrated investments in leading public and private companies that drive the world's internet economy. 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. It's 3 trillion, right? Or it's well over a trillion, Microsoft 3 trillion. You can learn more about the standards we follow in producing accurate, unbiased content in our. At first glance, the rules of English capitalization seem simple. But as you know, in the first three months of this year, all the high-quality stocks are being destroyed as well. Altimeter Growth Corp., the blank-check company merging with internet giant Grab Holdings Inc., is hovering just a few cents above its record low after cratering 28% since the deal was unveiled in . [3] Consumer confidence is plummeting. It has 24 billion in free cash they're going to generate this year. Unlock your 30 days free access to ETPrime now. 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. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. But it's good to be here and and you know, while I think we we did see the normalization and multiples as a likely outcome toward the end of last year. 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. Brad Gerstner I remember people asking that question about Amazon. See the Top Performing Hedge-Funds > Brad Gerstner . Hedge Fund Manager. Ultimately, we and the Board necessarily must share the same objective: maximizing long-term value creation for United's stockholders, customers, and employees. The letter is the latest sign that Meta investors are starting to express reservations about the company's recent performance. 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. Can it possibly be worth 200 billion? Can you tell me where that stands now and how you view stocks like that that have gotten absolutely obliterated? To accomplish this goal, we recommend a three step plan that will double FCF to $40 B per year and focus the companys teams and investments: Getting Fit Headcount Reduction / Expense Control. 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. In fact, we believe that augmented and artificial intelligence has the potential to drive more economic productivity than the internet itself. What do you think? 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. Frankly, if I was Sea Limited, if I was Uber, I might be looking at consolidating the business. Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time. Of course, a company that connects nearly three billion users on phone and text must be investing in the next generation of communication. Altimeter said such huge investments "in an unknown future is super-sized and terrifying, even by Silicon Valley standards". Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Altimeter Capital Management is a technology focused investment firm based in Menlo Park, CA and Boston, MA. Where's your exposure today? But you also (sometimes) capitalize the first word of a quote. Recently Active; Top Discussions; Best Content; WSO Media; BY INDUSTRY; Investment Banking "Meta Reports Fourth Quarter and Full Year 2022 Results," Page 10. Now that's what's going on in the business so all those people writing rest in peace epitaphs for Facebook are going to have to deal with that acceleration. Neither Altimeter, nor any of its affiliates or personnel, offers investment advisory services via the internet. Its competitor or not its competitor, its closest comp in Southeast Asia Sea Limited is also down over 70%. Everybody knows we've been in this company for a long time. "Time to Get Fit an Open Letter from Altimeter to Mark Zuckerberg (and the Meta Board of Directors).". Brenda Yester Baty, Head of Strategic Initiatives at Lennar Corp.; former SVP Revenue Management at Carnival Cruise Lines. While the increased AI investment was clearly well timed, Metas investment in the metaverse, while smaller than the AI investment, has gotten the most attention and has led to much confusion. I mean, two years ago we were we were having this conversation. Right? We're withdrawing trillions off the Fed's balance sheet. Altimeter Capital owns approximately 0.11% of Meta. And, while most companies will struggle to monetize AI, we believe Meta is incredibly well positioned to leverage AI to make all of its existing products better. Can it possibly be worth a trillion? As you know, we are long-term shareholders. So, its with some hesitation, but significant conviction, I am sharing an open letter strongly encouraging Meta to streamline and focus its path forward. 3,30,700 crore) if it cut headcount by at least 20 percent, trimmed capital expenditure by at least $5 billion (roughly Rs. 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 Meta certainly has abundant financial resources to invest and / or return to shareholders. Altimeter Capital Management, LLC a Portfolio Activity as reported in the most recent 13F form published on Dec 31, 2022. Our best guess is that maintenance capex for Meta is less than $10B annually. Background [ edit] In 2008, Brad Gerstner founded Altimeter Capital in Boston, Massachusetts. What is the metaverse and why are billions of dollars being spent on it? All quotes delayed a minimum of 15 minutes. I'm not a seller. We want to hear from you. 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. In addition, people are confused by what the metaverse even means. 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. Dont miss out on ET Prime stories! 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.