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. 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. 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. We know Meta has more reach, more relevance, and more incredible opportunities for growth than almost any platform on the planet. But as you know, in the first three months of this year, all the high-quality stocks are being destroyed as well. 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. They are people with families and kids to support. 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. Data is a real-time snapshot *Data is delayed at least 15 minutes. Today, the cost of capital has radically changed, and so has Metas growth rate. SEC.gov | HOME Why 20%? Time to Get Fit an Open Letter from Altimeter to Mark Zuckerberg (and And we are confident that your long-term investments in AI and the next generation of communications will continue to drive us all forward. I have been told that Amazon spent far less in total to build AWS. Privacy Policy, ISDA uses cookies to enhance your experience on our website. About Altimeter Capital Altimeter is a global investment firm managing both public and private funds focused on the airline, travel, technology, internet, software, and consumer sectors. Whatever the reason, that is certainly the perception. 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. Can it possibly be worth a trillion? QUARTERLY LETTER 2022 | Vol.1 1345 AVENUE OF THE AMERICA S 33RDFLOOR NEW YORK, NY 10105 HAYDENCAPITAL.COM HAYDEN CAPITAL 2 May 20, 2022 Dear Partners and Friends, The last six months have been extremely painful - by far, the worst period since we started Hayden. FREE Breaking News Alerts from StreetInsider.com! Altimeter Capital Management, LLC. Can you tell me where that stands now and how you view stocks like that that have gotten absolutely obliterated? Can it possibly be worth 100 billion? 15 About Kevin Wang. Altimeter Capital Management, LP Buys Opendoor Technologies Inc, Toast Inc, Duolingo Inc, Sells . Investopedia does not include all offers available in the marketplace. ISDA fosters safe and efficient derivatives markets to facilitate effective risk management for all users of derivative products. 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. In Q1 of 2021, everybody was sitting on their couch. 2023 CNBC LLC. My bet is we're gonna have less this year. "In addition, people are confused by what the metaverse even means," Gerstner wrote. It did not specify which of Alitmeter's SPACs Grab was in talks with. March 2013 Protocol ALID: 66704. Think about this, Scott. Paul A. Reeder Superficial change in panicked response to rigorous scrutiny is hardly noble or a basis for stockholders to have confidence in your judgment. Activist investor Brad Gerstner, founder and CEO of tech-focused hedge fund Altimeter Capital, sent an open letter to CEO Mark Zuckerberg in October calling for a pullback in metaverse spending. Based on yesterday's announcement, it seems the Board now agrees that for many years it operated with a suboptimal composition. In the letter, Gerstner said Altimeter Capital doesn't have demands and simply wants to engage with Meta management. WAPNER: Let me lastly ask you about Grab, the SPAC deal you did, biggest SPAC deal ever of $40 billion. We worked hard on the deal and the timing was horrific. effective risk management for all users of derivative products. 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. We think this is a 3X in three years even if software multiples remain at these levels near the five-year average. It's going to do 20 billion in GMV. Got a confidential news tip? According to Hedge Follow, it was authored by Brad Gerstner, CEO and founder of technology investment firm Altimeter Capital. 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. If the deal goes through, it. You know, I said on Twitter a few weeks ago, I don't think the Fed's behind the curve on rates. In fact, in the most recent quarter, they added 1.4 billion of contracted value. But what is the right amount? After all, why not hire more people and invest in more things when the cost of capital was near zero and growth seemed unlimited? will trigger a new window or tab to open. I've got some people including a guy coming up in a little while Mike Wilson who suggested at this point bonds may be a better deal than stocks. 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. Southeast Asia's Grab in talks for U.S. listing via $40 billion SPAC The Meta investor recommends a plan to get the company's "mojo back.". 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. Altimeter's second tech SPAC Altimeter Growth Corp. 2 files - Nasdaq 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. Adani Group on Thursday said US-based boutique investment firm GQG Partners has picked up equity stakes worth $1.87 billion (15,446 crore) in four listed group companies Adani Ports and Special Economic Zone, Adani Green Energy, Adani Transmission and flagship Adani Enterprises via secondary share sales. Altimeter Capital Management LP. Altimeter Capital owns approximately 0.11% of Meta. 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. 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. Will His AI Plans Be Any Different? It takes effect in 2023. Our best guess is that maintenance capex for Meta is less than $10B annually. "We think the recommendations outlined above will lead to a leaner, more productive, and more focused company a company that regains its confidence and momentum," Gerstner wrote. On Oct. 11, Meta announced a new high-end VR headset, the Quest Pro. We'll see you soon. GERSTNER: Scott, I love that you asked the question. Consumer confidence is plummeting. CAPEX Investing Aggressively and Responsibly in the Future of AI. The average tech IPOs down almost 50% from last year, SPACs much worse, direct list bad, all stocks that were taken public last year now it's clear were overvalued relative to where the world is trading them today. So I am very unhappy because I've lost money on the deal. We do not take job reductions lightly. Over the last three years, Meta has also dramatically increased its capital expenses. Enjoy a 7-Day Free Trial Thru Feb 17, 2023! 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. WAPNER: I know I know you're not happy about it. Musk Made a Mess at Twitter. I said IDFA which is the Apple changes right? Altimeter Capital Portfolio Investments, Altimeter Capital Funds 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." 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. We also believe Metas investment in AI will lead to exciting and important new products that can be cross-sold to billions of customers. Tech SPAC Altimeter Growth Corp. 2 prices further upsized $400 million b***@altimeter.com. 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. I mean, we're talking about billions of dollars in revenue but you left that out. 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. 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. I think you're gonna see monetization gains against IDFA and either way we lap that issue in Q3 and Q4. The answer to that is because people are very fearful. Board of Directors c/o Chairman Henry L. Meyer III United Continental Holdings, Inc. .