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. We can just go through the list, Uber, Facebook, Roblox. Updated on September 30, 2022. Oct 24 (Reuters) - Facebook-parent Meta Platforms Inc (META.O) needs to streamline by cutting jobs and capital expenditure, its shareholder Altimeter Capital Management said on Monday in an open letter to Chief Executive Mark Zuckerberg. Meta didn't immediately respond to a request for comment. ISDA is a registered trademark of the International Swaps and Derivatives Association, Inc. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Includes DocuBay and TimesPrime Membership. He argued that this was "one of the big reasons behind these price cuts.". The facts are startling. Following is a link to video on CNBC.com: https://www.cnbc.com/video/2022/03/14/we-could-go-lower-before-we-go-higher-in-stocks-says-altimeter-capitalas-ceo-brad-gerstner.html. ISDA fosters safe and efficient derivatives markets to facilitate effective risk management for all users of derivative products. Remember last year they gave a guide at the beginning of the year they're going to grow at 80%. 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. And then take that part of the world. Chief Executive Officer This is a region of 700 million plus people. As always, happy to connect with you and your team. In fact, in the most recent quarter, they added 1.4 billion of contracted value. Chase Coleman's: Tiger Global Management. 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. A Division of NBCUniversal. Musk Made a Mess at Twitter. The silver lining is that unlike many companies, this popular narrative obscures the truth. I have deep respect and admiration for founders that continue to grind, inspire, and invent long after the financial motivation is gone. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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. Meta needs to re-build confidence with investors, employees and the tech community in order to attract, inspire, and retain the best people in the world. And now we've shot right through the five-year average. Moreover, I am a strong supporter of founder-led companies especially when they have your successful track record of seeing the future. Right. We had given most of that up by middle of December. I have been told that Amazon spent far less in total to build AWS. This compensation may impact how and where listings appear. At Meta, the number of employees is up over 3x from 25k to 85k employees in just the last four years! So no, these issues are rea,l what's going on in Russia is real, what's going on in Europe is real. HONG KONG (AP) Southeast Asia's largest ride-hailing company, Grab Holdings, said Tuesday that it plans to merge with U.S.-based Altimeter Growth Capital in a deal that would value it at . If the deal goes through, it. 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. Meta shareholder Altimeter urges Facebook parent to cut down jobs, expenses And as a result, you know, last year we held up better than most because we own high-quality stocks, and we were short lower quality stocks. We certainly our base case, as you know, was a soft landing four to five rate hikes into this year. Focusing the Metaverse: the Next Generation of Communication and Collaboration. Meta shareholder wants Facebook parent to cut jobs, spending Brad Gerstner - Founder & Chief Ex.. - Altimeter Capital - ZoomInfo Of course, a company that connects nearly three billion users on phone and text must be investing in the next generation of communication. When you were with me in December, you said that you had picked some more of that up along with Snowflake. Recently Active; Top Discussions; Best Content; WSO Media; BY INDUSTRY; Investment Banking "In short, Meta needs to get fit and focused.". CNBC Exclusive: CNBC Transcript: Altimeter Capital Founder & CEO Brad These are not numbers on a spreadsheet. 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. 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. 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. Subject: Meaningful Board Change Required 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). A securities lawyer, Brad Gerstner graduated from HBS in 2000 and joined General Catalyst. 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. Focusing the Metaverse: the Next Generation of Communication and Collaboration. So if you want to bet on the future of growth, Southeast Asia is one of the places you want to bet this is one of the dominant brands, dominant internet platforms, and it's got 7 billion of cash on the balance sheet. Conclusion A Leaner, Faster, More Successful Meta. We didn't think that was durable. Hedge Fund Manager. Email. Our Standards: The Thomson Reuters Trust Principles. Meta Platforms CEO Mark Zuckerberg speaks about the Facebook News feature at the Paley Center For Media in New York on Oct. 25, 2019. 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. Search ISDA ISDA fosters safe and efficient derivatives markets to facilitate effective risk . We were wrong. Altimeter Capital owns approximately 0.11% of Meta. Altimeter Capital Management LP now owns 2,850,000 shares of the Internet company based in Singapore's stock worth $131,784,000 after purchasing an additional 1,600,000 shares during the last quarter. CAPEX Investing Aggressively and Responsibly in the Future of AI. Panel led by former SC judge to include NaBFID chair KV Kamath and Infys Nandan Nilekani. Tech SPAC Altimeter Growth Corp. 2 prices further upsized $400 million 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. 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. And so that will be rolled out in Q2 and Q3. It said Grab is expected to raise between. This lack of focus and fitness is obscured when growth is easy but deadly when growth slows and technology changes. Altimeter Capital Management LP lifted its position in shares of SEA by 128.0% during the first quarter. 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 LP Top Holdings 13F Filings Brad, thank you. Got a confidential news tip? Is it close to being done? Bruce Berkowitz's: Fairholme Capital Management. If the company were investing $12B per year into this project, then that confusion might not even be a problem. The industry leader for online information for tax, accounting and finance professionals. 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. But listen, there's massive uncertainty in the world. In the back half, you've already lapped IDFA, in the back half of this year, the supply chain issues begin to ameliorate. committed hundreds of millions of dollars to Sequoia Capital, Altimeter Capital Management and Multicoin . 'Super-Sized and Terrifying': Zuckerberg's $100B Metaverse Gamble The stock today hit a new low under $3. About Kevin Wang. We also believe Metas investment in AI will lead to exciting and important new products that can be cross-sold to billions of customers. 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Days Trial. To experience the full functionality of the ISDA website, it is necessary to enable Javascript in your I mean you have defended it at every turn from the issues that the company has had you you defended Mark Zuckerberg, you've defended Sheryl Sandberg and you you did it quite loudly on this program. The Digital Markets Act (DMA) is a groundbreaking European law designed to rein in the power of the gatekeepers of the digital economy. That could in fact become a tailwind as we get to the back half of the year. To set a new and better course for the Company, and to give United stockholders the opportunity to elect the Board they deserve, Altimeter has delivered to you a notice today indicating its intention to nominate six highly qualified professionals led by former Continental Airlines CEO Gordon Bethune to the United Board at the 2016 annual stockholder meeting. Meta has also been feeling pressure to improve the finances of its Reality Labs, the company's metaverseunit, which includes the VR headsets. It's interesting that now today you say we're in the neighborhood of a tradable bottom. Sign up for free newsletters and get more CNBC delivered to your inbox. GERSTNER: Right, it comes down fundamentally to a question Scott of whether you think we're gonna have more than eight rate increases or less. 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. Will His AI Plans Be Any Different? With that said, we have a shortage of talent in Silicon Valley. To read full story, subscribe to ET Prime, Billed annually at We dont have any demands. You would simply do R&D quietly and investors would focus on the core business and the breakthroughs in AI. 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.. Can they maintain their growth momentum? All Rights Reserved. Prior to Octahedron, Ram was a partner and portfolio manager at Altimeter Capital, a multi-billion dollar investment firm . Can it possibly be worth 200 billion? ISDA fosters safe and efficient derivatives markets to facilitate Altimeter Capital's Brad Gerstner calls on Meta to slash headcount 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. 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. If they do it, I think the stock can be up over 50% between now and the end of the year. The letter is the latest sign that Meta investors are starting to express reservations about the company's recent performance. We believe that our conclusion is shared by many of United's long-suffering stockholders, customers, and 80,000+ dedicated employees. We know they have high EBITDA margins on the rideshare business which is dominant across the region. It's going to do 20 billion in GMV. Altimeter Capital - Portfolio - Index 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. Altimeter Capital Management, LP Buys Opendoor Technologies Inc, Toast Inc, Duolingo Inc, Sells . After all, why not hire more people and invest in more things when the cost of capital was near zero and growth seemed unlimited? 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. Meta Platforms, which is set to report third-quarter results on Wednesday after markets close, declined to comment. This company is perfectly positioned to capitalize on that they have the, the ad network to monetize it. 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. Altimeter Capital Management, LLC. I think that this is a business that is investing in the right things. I have deep respect and admiration for founders that continue to grind, inspire, and invent long after the financial motivation is gone. Altimeter Capital Management partner Chris Conforti plans to leave the investment firm, according to people with knowledge of the matter. 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. We have $130 oil and $6 gas at the pump. About Altimeter Capital So I think they got to match the investment to the revenue growth of the business. For reprint rights: Continue reading with one of these options: Login to get access to some exclusive stories, Get access to exclusive stories, expert opinions &, Valid only with UPI, Credit & Debit Cards Autopay, Inciting hatred against a certain community, 15 So the way companies have to get there is by growing their top line and growing their bottom line, the answer as to all companies many most certainly will not. All of China internet down over 80%. FalconX Raises $210M Following 30x YoY Revenue Growth; Now Valued at $3 If Meta was able to control those costs, he said, then it could double its free cash flow and improve its share price. Meta layoffs 2022: Cut workforce, spending on metaverse, key investor 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 . b***@altimeter.com. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. August 2012 Protocol ALID: 66703 Market Research. As such, we would encourage the company to move aggressively and cut at least 20% of employee-related expenses by January 1, 2023. At first glance, the rules of English capitalization seem simple. . Brad Gerstner founded the. Altimeter Capital Management LLC. Its founder faces criminal and civil charges and goes to trial in October. Gordon Bethune, former CEO of Continental Airlines; board member of Honeywell, Prudential Financial, and Sprint; Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Over time, we intend to share with United's stockholders our detailed analysis, which has led us to conclude, among other things, that: Time to Get Fit an Open Letter from Altimeter to Mark Zuckerberg (and The facts are startling. Are you as optimistic today as you were in months past? The deal values the combined company at $35 billion and will. Crowdfunding is the use of small amounts of capital from a large number of people to raise money or fund a business. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Activist investor Brad Gerstner, founder and CEO of tech-focusedhedge fundAltimeter Capital, sent anopen letterto CEOMark Zuckerbergin October calling for a pullback in metaverse spending. If you look at the company, it's now trading at $5 billion enterprise value. Link to 13F filings: SEC filings Like many other companies in a zero rate world Meta has drifted into the land of excess too many people, too many ideas, too little urgency. 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. 2023 Benzinga.com. 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. 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%. Altimeter Capital owns a stake of about $320 million, according to the Wall Street Journal, but that only equates with a 0.1% share of the company, according to Meta's latest filings with the. Bill Ackman's: Pershing Square Capital Management. Altimeter Capital Management LP. 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. In the last 18 months, Meta stock is down 55% (compared to an average of 19% for its big-tech peers). As such, we would encourage the company to move aggressively and cut at least 20% of employee-related expenses by January 1, 2023. 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. Benzinga does not provide investment advice. The Meta investor recommended a plan to get the company's "mojo back," including reducing headcount expenses by 20% and limiting the company's pricey investments in "metaverse" technology VR software and hardware to no more than $5 billion per year. We didn't see the concerns emerging about hyperinflation about 10 to 12 rate hikes, and we certainly didn't see this tragic more unfolding on the doorstep of Europe. Altimeter.com is Altimeter's only website. Altimeter's nominees are: But far from being a bad decision, 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. What's going to be the inflation print in April? How big is that market? It's a better version of Zoom. Ranked #76 out of 483 Hedge Fund Managers. At $20-$25B of annual capex, Meta will still be investing market leading amounts to help invent the future of AI. Brad Gerstner I don't think the Fed is going to throw away two years' worth of work to try to avoid a recession in a election year and run us straight into the teeth of a recession while we're trying to fight a war in Europe. 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. 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. H1 Raises $100M Series C to Expand Footprint, Make H1 the
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