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Altimeter said annual free cash flow can be doubled to $40 billion if it cut headcount by at least 20%, trimmed capital expenditure by at least $5 billion to $25 billion a year and capped annual investment in the metaverse to $5 billion instead of the current $10 billion. Recently Active; Top Discussions; Best Content; WSO Media; BY INDUSTRY; Investment Banking 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. The deal values the combined company at $35 billion and will. FTX founder Sam Bankman-Fried was not only a tireless fundraiser from venture capital firms including Paradigm and Sequoia Capital, but also quietly made investments in those same funds, according to two people familiar with the matter. Can it possibly be worth a trillion? FREE Breaking News Alerts from StreetInsider.com! for a description of how we use cookies. c/o Altimeter Capital Management, LP. These are not numbers on a spreadsheet. As always, we welcome the opportunity to engage in further discussions focused on this shared objective. This is a business it's trading at 12 times free cash flow, X the meta investment and 18 times including. 9/29/2022 1:05 AM. ISDA fosters safe and efficient derivatives markets to facilitate effective risk management for all users of derivative products. 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. Investors in the round: 776 Capital, Altimeter Capital, BoxGroup, Dragoneer Investment Group, FirstMark, General Catalyst, Radcliff Group, ShawSpring Partners, SignalFire, The Baupost Group, Torch Capital, TQ Ventures 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. 15 And we are confident that your long-term investments in AI and the next generation of communications will continue to drive us all forward. ", Medium.com. 2023 CNBC LLC. So these are different order of magnitude bets. At the start of COVID on March 26th when I felt about like I do today, growth stocks were under assault. 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. 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. Meta Platforms, which is set to report third-quarter results on Wednesday after markets close, declined to comment. In short, Meta needs to get fit and focused. I hear you but look, there are, there are some people who think and it's not maybe it's not a Snowflake, but it's a you know, a basket of these kinds of names that may never get back. It has 24 billion in free cash they're going to generate this year. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. We have $130 oil and $6 gas at the pump. If they do it, I think the stock can be up over 50% between now and the end of the year. . Grab Holdings is reportedly in talks to go public through a merger with a "blank check" company that could value the Southeast Asian ride-hailing startup at as much as . Capital October 20, 2022 Risk & Capital. Nobody debates whether or not this company is going to be more valuable in the future. If Meta was able to control those costs, he said, then it could double its free cash flow and improve its share price. Moreover, I am a strong supporter of founder-led companies especially when they have your successful track record of seeing the future. Of course, a company that connects nearly three billion users on phone and text must be investing in the next generation of communication. 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. Its founder faces criminal and civil charges and goes to trial in October. 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. 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. This is a region of 700 million plus people. The Meta investor recommends a plan to get the company's "mojo back.". 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. Today, the cost of capital has radically changed, and so has Metas growth rate. They were cratering ironically, now we're normalizing and growth stocks are down even more than they were at the start of COVID. After all, why not hire more people and invest in more things when the cost of capital was near zero and growth seemed unlimited? 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FTX's list of investors spans powerful and well-known investment firms: NEA, IVP, Iconiq Capital, Third Point Ventures, Tiger Global, Altimeter Capital Management, Lux Capital, Mayfield,. Drew Angerer | Getty Images News | Getty Images, Meta needs to focus on its core business, not the Metaverse, says Sand Hill's Brenda Vingiello. 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. By any normal company or start up standard, $5 B per year would seem like an extraordinary amount. Altimeter Capital Management LP Info Size ($ in 1000's) At 12/31/2022: $3,652,571 At 09/30/2022: $4,676,285 Altimeter Capital Management LP holdings changes, total fund size, and other information presented on HoldingsChannel.com was derived from Altimeter Capital Management LP 13F filings. To put that in perspective, excluding your large metaverse investment, Meta is investing more in capex than Apple, Tesla, Twitter, Snap, and Uber combined! That was our baseline that we were going to have a relatively soft landing, three to four rate hikes. WAPNER: Man, I love how honest you are and I know our viewers do as well. 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. Altimeter's nominees are: That could in fact become a tailwind as we get to the back half of the year. We dont have any demands. What is the metaverse and why are billions of dollars being spent on it? Chase Coleman's: Tiger Global Management. Gordon Bethune, former CEO of Continental Airlines; board member of Honeywell, Prudential Financial, and Sprint; We simply wanted to further engage and continue sharing our thoughts as an interested shareholder. . Board of Directors c/o Chairman Henry L. Meyer III United Continental Holdings, Inc. . About Altimeter Capital Meta. So take Snowflake as an example. Neither Altimeter, nor any of its affiliates or personnel, offers investment advisory services via the internet. We think both of those are solvable. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. As such, we think during this period of growth transition and economic uncertainty, the company should decrease capex by at least $5B and maintain this discipline until revenues re-accelerate bringing our capex as a percentage of revenue more in line with our large cap peers. Brenda Yester Baty, Head of Strategic Initiatives at Lennar Corp.; former SVP Revenue Management at Carnival Cruise Lines. Our Standards: The Thomson Reuters Trust Principles. "Time to Get Fit an Open Letter from Altimeter to Mark Zuckerberg (and the Meta Board of Directors).". 10. And Meta certainly has abundant financial resources to invest and / or return to shareholders. As such, we think during this period of growth transition and economic uncertainty, the company should decrease capex by at least $5B and maintain this discipline until revenues re-accelerate bringing our capex as a percentage of revenue more in line with our large cap peers. Chicago, IL 60606 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. 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. 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. You know, I said on Twitter a few weeks ago, I don't think the Fed's behind the curve on rates. In the letter, Gerstner said Altimeter Capital doesn't have demands and simply wants to engage with Meta management. Altimeter said annual free cash flow can be doubled to $40 billion if it cut headcount by at least 20%, trimmed capital expenditure by at least $5 billion to $25 billion a year and capped. Are you as optimistic today as you were in months past? 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. This is a business it's grown, it's trading at 28 times free cash flow with 20% growth, that will continue to compound. 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. He said the money the company is currently spending to develop VR could add up for a decade before it comes to fruition. Link to 13F filings: SEC filings 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. GERSTNER: Right Scott so that you know I started off by saying you know we've been beaten up this year like everybody else because I was covering shorts as we approach the five-year average. Brad Gerstner is the Founder & Chief Executive Officer at Altimeter Capital based in Boston, Massachusetts. Altimeter Capital Management partner Chris Conforti plans to leave the investment firm, according to people with knowledge of the matter. 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%.
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altimeter capital letter