Altimeter is an American fund manager with almost $18 billion in funds under management. The company started in 2008 and has riden the wave of technology companies in the post-GFC stock market, including taking Singapore rideshaing company and aspiring superapp Grab public via a SPAC. As part of their public market investments they have been a long term shareholder of Meta (aka Facebook). And this week they published an open letter to Mark Zuckerberg and the Meta board of directors.
And it is notable that even some of Meta’s biggest believers and longest shareholders are calling for change.
“Meta has drifted into the land of excess — too many people, too many ideas, too little urgency. This lack of focus and fitness is obscured when growth is easy but deadly when growth slows and technology changes.”
But despite the drift, Altimeter is still a believer in Meta.
“Meta’s core business is one of the largest and most profitable in the world with over $45B in operating profits last year alone. 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… But Meta needs to get its mojo back.”
And to get their mojo back, Altimeter suggests some drastic steps – including cutting headcount by 20% and limiting investment in virtual reality and the metaverse.
For a major, long-term shareholder based in San Francisco that could probably pick up the phone and speak to Meta’s executive team (or at the very least, could email this letter privately), the fact this letter was sent publicly sends a message as well. Long-term Meta shareholders are losing faith and they want their investors and LPs to know they are asking hard questions.
Given Meta’s share price fell 22% in the past week and is down 70% year to date, now is certainly the time to be asking them.
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