Gerstner states Meta cut from 87,000 to 62,000 employees and reorganized around AI in February 2023.
“They went from 87,000 employees to 62,000 employees in October of 'twenty two. They reorganized the company around AI starting in February of 'twenty three.”
Gerstner claims Meta is the largest AI profit beneficiary in public markets outside NVIDIA.
“They are the single largest beneficiary of AI from a profit perspective in the public markets today outside of NVIDIA.”
Gerstner calculates the market assigns negative $120 per share valuation to Reality Labs.
“The market's assigning a 20 times multiple to the company. So that's effectively an implied valuation of negative $120 per share for Reality Labs.”
Gerstner reveals Meta was trading at 6x fully taxed earnings at the start of 2023.
“Meta was trading at six times fully taxed earnings, right? And so unless you were doing the work”
Gerstner references his letter to Zuckerberg urging AI investment and predicts Meta will be a major AI winner.
“I said on your program, you know, six or nine months ago, and in my letter to Mark Zuckerberg, I said double down on AI.”
Gerstner details ByteDance financials: $120B revenue, $25B profit similar to Meta, US TikTok only $3-4B.
“So a 120,000,000,000 top line. It's also been leaked that in that TikTok is about 14,000,000,000 of that and that US TikTok is 3 to 4,000,000,000.”
post Gerstner calls $450B Anthropic 2027 exit run rate too aggressive, sees $250B as achievable base case
https://x.com/altcap/status/2089397992252178446
post Gerstner says Anthropic and OpenAI revenue scaling is 10x faster than Google and Meta at comparable scale
https://x.com/altcap/status/2087531768408572006