Meta Investor Calls for Major Changes
Forward of its newest earnings report tomorrow, the pinnacle of a technology-focused hedge fund known as on Meta Platforms (META) to slash its workforce and pull again spending on its metaverse know-how, saying it’s time for the social media big to “get match.”
Brad Gerstner, founder and CEO of Altimeter Capital, wrote in an open letter to CEO Mark Zuckerberg and the board that Meta “must get its mojo again,” and rebuild confidence with traders, staff, and the tech neighborhood.
Gerstner pointed to the decline within the agency’s inventory worth and price-to-earnings ratio (P/E). He argued Meta has “drifted into the land of extra,” including it has had an absence of focus and health, which is “lethal when development slows and know-how modifications.”
Gerstner stated Meta wants to chop headcount expense by not less than 20%, and cut back annual capital expenditures by not less than $5 billion from $30 billion to $25 billion.
Metaverse Spending Reductions
He needs funding within the metaverse to be not more than $5 billion yearly. Simply final 12 months, the corporate modified its title from Fb to Meta as a part of its transfer to extra absolutely embrace the way forward for digital actuality.
Altimeter Capital is reported to carry 2.5 million shares, or a 0.11% stake, within the firm.
Shares of Meta Platforms are greater in the present day forward of the corporate’s earnings report.