If the deal goes through, it. 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. We also believe Metas investment in AI will lead to exciting and important new products that can be cross-sold to billions of customers. A Division of NBCUniversal. All quotes delayed a minimum of 15 minutes. Altimeter Capital Management LLC. Louis Bacon's: Moore Capital Management. In addition, people are confused by what the metaverse even means. But what is the right amount? We are generally patient investors. Meta didn't immediately respond to a request for comment. This will alert our moderators to take action.  We did not see this talk of 10 rate hikes and we certainly didn't see a war developing in Europe. 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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. This is a company that only did 1.2 billion in revenue last year. Altimeter. 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. Get this delivered to your inbox, and more info about our products and services. And then take that part of the world. A letter addressed to Zuckerberg and the board of directors was published on Oct. 24. We believe in this team. After all, why not hire more people and invest in more things when the cost of capital was near zero and growth seemed unlimited? Look at another one that I know is in your book or at least it was Roblox is down 74% from its 52-week high. 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. The full text of the stockholder letter to the United Board follows: March 8, 2016. As I look at it, the market is now pricing in at least seven rate hikes. Warren Buffett's: Berkshire Hathaway. Choose your reason below and click on the Report button. At $20-$25B of annual capex, Meta will still be investing market leading amounts to help invent the future of AI. With Snowflake, the question as to whether or not that business is going to compound, I think is not one that many people will debate. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Everybody knows we've been in this company for a long time. I can't tell you what's going to happen the next three days or the next three weeks or even three months. As a result, the team hastily pivoted the company toward the metaverse including a surprise re-naming of the company to Meta. "Jitesh Ubrani: Tweet From March 3, 2023. That could in fact become a tailwind as we get to the back half of the year. 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. 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. Conclusion A Leaner, Faster, More Successful Meta. United Continental Holdings, Inc. Form of Letter Agreement between the Registrant, the Sponsor and each director and executive officer of the Registrant. If they do it, I think the stock can be up over 50% between now and the end of the year. 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%. Right? But Meta needs to get its mojo back. The Meta investor recommends a plan to get the company's "mojo back.". The conventional wisdom press and investor is that the core business hit a wall last fall. 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. 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 going to do 20 billion in GMV. Our best guess is that maintenance capex for Meta is less than $10B annually. Frankly, if I was Sea Limited, if I was Uber, I might be looking at consolidating the business. My bet is we're gonna have less this year. Protocol: 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. Altimeter Capital launched its two SPACs in October and January, raising a combined $850 million between the two blank-check vehicles. Mark Zuckerberg is a self-made billionaire and the CEO of Meta (formerly Facebook), which he co-founded in his dorm room in 2004. Sign up for free newsletters and get more CNBC delivered to your inbox. 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. 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. 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. As such, we would encourage the company to move aggressively and cut at least 20% of employee-related expenses by January 1, 2023.  The firm focuses on technology investments in both public and private markets globally. 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So we've taken up our exposure, we've consolidated behind our five or six best ideas, we don't run leverage and so the bet for our LPs, I'm the largest LP in the fund. 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. Can it possibly be worth 200 billion? ", Jitesh Ubrani of market research firm IDCpointed outthat Meta's year-over-year VR shipments plunged 93% in the fourth quarter, while those of Pico from rival ByteDance rose 110%. Consumer confidence is plummeting. In the back half, you don't have those same comp issues that you have caused by COVID. These include white papers, government data, original reporting, and interviews with industry experts. 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. CAPEX Investing Aggressively and Responsibly in the Future of AI. In the back half, you've already lapped IDFA, in the back half of this year, the supply chain issues begin to ameliorate. He joins me live.