Altimeter Capital Management is a hedge fund with 17 clients and discretionary assets under management (AUM) of $17,950,309,162 (Form ADV from 2022-05-27). Can it possibly be worth 100 billion? The Singaporean rideshare giant Grab is set to merge with the SPAC Altimeter Growth 1, according to a report from The Financial Times. Gordon Bethune, former CEO of Continental Airlines; board member of Honeywell, Prudential Financial, and Sprint; An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards. Altimeter said annual free cash flow can be doubled to $40 billion (roughly Rs. See here for a complete list of exchanges and delays. I just happen to look at a Snowflake it's in front of me and because it's your largest position, I say can Snowflake really get back to its 52-week high of $405 a share. That's why even the sell side consensus numbers have their growth rate accelerating, almost doubling between Q2 and Q4 of this year and we think it will accelerate even faster. Altimeter. By any normal company or start up standard, $5 B per year would seem like an extraordinary amount. . Meta reported in February that Reality Labs lost $13.72 billion in 2022. Chief Executive Officer Capitalizing on the fund's VC success, Gerstner raised $450M for Altimeter Growth Corp (AGCUU), a blank check company IPO targeting the tech sector. 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. 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. A newly launched P2E adventure game, Chronos: Dawn of Tie, has introduced a series of brand-new PvP elimination tournaments.Last month, the whimsical battle game organized its beta stage featuring selected players. 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. Dave Baszucki of Roblox describes the metaverse as the natural evolution of communication a multi-device world, including the phone, that is best thought of as a better version of text, video, and voice that will make us feel more connected. Altimeter manages a long / short public equity fund and private growth equity funds. Search ISDA ISDA fosters safe and efficient derivatives markets to facilitate effective risk . Over time, we intend to share with United's stockholders our detailed analysis, which has led us to conclude, among other things, that: So I am very unhappy because I've lost money on the deal. This is expected to facilitate trade as the West ratchets up sanctions on Russia. It can do great this, the business can be incredible. 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. I would take it a step further and argue that these incredible companies would run even better and more efficiently without the layers and lethargy that comes with this extreme rate of employee expansion. +Includes DocuBay and TimesPrime Membership. And so that will be rolled out in Q2 and Q3. "Meta Reports Fourth Quarter and Full Year 2022 Results," Page 10. As always, we welcome the opportunity to engage in further discussions focused on this shared objective. 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. 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. Crowdfunding is the use of small amounts of capital from a large number of people to raise money or fund a business. Whatever the reason, that is certainly the perception. "Bloomberg Opinion" columnists offer their opinions on issues in the news. Conclusion A Leaner, Faster, More Successful Meta. Our best guess is that maintenance capex for Meta is less than $10B annually. Ultimately, we and the Board necessarily must share the same objective: maximizing long-term value creation for United's stockholders, customers, and employees. The metaverse is a shared virtual environment with aspects of online gaming, augmented reality, and more that people can access via the Internet. Unlock your 30 days free access to ETPrime now. Altimeter Growth Corp. raised $450 million in an October 2020 IPO. 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. And Meta certainly has abundant financial resources to invest and / or return to shareholders. By any normal company or start up standard, $5 B per year would seem like an extraordinary amount. Rapid mobile adoption helped market leaders blaze through the s-curve with astounding growth rates and a historically low cost of capital made investments in people and things the rational economic decision. 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. It's 3 trillion, right? Instead, they grew at 106%. We know Meta has more reach, more relevance, and more incredible opportunities for growth than almost any platform on the planet. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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. It's interesting that now today you say we're in the neighborhood of a tradable bottom. 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. And frankly, I don't think we're gonna have hyperinflation in a world where demand is being destroyed at the rate it's currently being destroyed. I think we spent about an hour together. Worse, this skepticism seemed to be affirmed with a nearly-immediate and sizable miss in financial results and continued under-performance throughout 2022. 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 . This would double annual FCF and put FCF as a percentage of revenue more in line with Google, Microsoft, and Apple. It's good to see you again. GERSTNER: Scott, I love that you asked the question. "Jitesh Ubrani: Tweet From March 3, 2023. 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. 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 . Focusing the Metaverse: the Next Generation of Communication and Collaboration. Altimeter Capital Management, LLC a Portfolio Activity as reported in the most recent 13F form published on Dec 31, 2022. Got a confidential news tip? Email. Ultimately, Gerstner said, Meta has too many people and is spending too much on capital expenditures. They are people with families and kids to support. 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. Board of Directors c/o Chairman Henry L. Meyer III United Continental Holdings, Inc. . 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. Enjoy a 7-Day Free Trial Thru Feb 17, 2023! All Rights Reserved. Do they want to stand with me and ride that out? Altimeter Capital Management, LLC. At $20-$25B of annual capex, Meta will still be investing market leading amounts to help invent the future of AI. He defied expectations and made profits on Priceline, Expedia, Uber, Twilio, and Hubspot. There is no doubt that doubling annual FCF will improve share price. Conforti plans to join a new firm as a co-founder with former Whale Rock Capital Management partner Kristov Paulus, said one of the people, who asked not to be identified because the information is private. And, while that ultimately is an important long-term measure of success for all of Metas stakeholders, it would be imprudent to make short-term bad decisions just to improve the share price. Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. Experience Your Economic Times Newspaper, The Digital Way! In addition, people are confused by what the metaverse even means. 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 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. Background [ edit] In 2008, Brad Gerstner founded Altimeter Capital in Boston, Massachusetts. I think you're gonna see monetization gains against IDFA and either way we lap that issue in Q3 and Q4. At first glance, the rules of English capitalization seem simple. 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. Over the last three years, Meta has also dramatically increased its capital expenses. 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? Meta shares moved 6% higher following the announcement. Why 20%? So were Shopify's and so were PayPal. Regrettably, our efforts have led to our complete loss of confidence in the current Board, and to our firm determination that meaningful, stockholder-directed Board change is urgently required to serve the long-term best interests of United's stockholders, customers, and employees. Congrats on the new show. Altimeter said such huge investments "in an unknown future is super-sized and terrifying, even by Silicon Valley standards". We are generally patient investors. Chief Executive Officer With that said, we have a shortage of talent in Silicon Valley. Altimeter Capital Management is an investment firm that operates within the technology sector. So no, these issues are rea,l what's going on in Russia is real, what's going on in Europe is real. 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. 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. With all of this said, we truly believe that the company should be making some of these important investments. We know Meta has more reach, more relevance, and more incredible opportunities for growth than almost any platform on the planet. As you know, we are long-term shareholders. Benchmark Reform and Transition from LIBOR InfoHub, Use of Chinese Government Bonds as Margin, Updated OTC Derivatives Compliance Calendar, ISDA-Clarus RFR Adoption Indicator: January 2023.