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Speaker 1: This is what the flax. I'm Brett and I've justin.

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Speaker 1: It's Friday, the twenty first of November, does it? Wait?

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Speaker 2: Webjet could be called Hello Webjetty pretty soon. Hello World

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Speaker 2: is the old school travel agent with old school shops

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Speaker 2: and making the bookings for you. And it's just made

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Speaker 2: a three hundred and fifty three million dollar takeover offer

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Speaker 2: for Webjets. Next minute, webjets share price spike seventeen percent,

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Speaker 2: So watch this airspace.

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Speaker 1: It'd be very interesting there be man by time. We

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Speaker 1: often hear in Australia that property is the great Australian dream,

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Speaker 1: But in terms of financial returns, is that actually stack

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Speaker 1: up well? We have done a deep dive comparing the

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Speaker 1: returns to the property market, ver's the returns in the

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Speaker 1: share market over the last ten years. So if you

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Speaker 1: want to learn which one comes out on top, make

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Speaker 1: sure to download the Flux app and check out our

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Speaker 1: latest article.

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Speaker 2: Three riveting Stories Today Juzzy Boy, let's do it for

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Speaker 2: our first Quantas is taking the loyalty battle to Virgin

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Speaker 2: Australia head on with a new membership program for Jetstar.

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Speaker 1: Battle of the Aussi air Lines is on BMN so

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Speaker 1: what is the story here?

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Speaker 2: Right? So we know Quantus is Australia's biggest domestic and

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Speaker 2: international airline, founded in nineteen twenty.

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Speaker 1: And it also owns Jetstar, which is the budget friendly

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Speaker 1: airline for people who can't justify the full service prices and.

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Speaker 2: Who don't need a free biki or tea on their flight.

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Speaker 1: Now, be man, get this together. Quantus and Jetstar hold

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Speaker 1: over sixty percent market share of the domestic aviation market and.

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Speaker 2: Jesus, wait, we know that Virgin holds about thirty percent

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Speaker 2: market share and is pretty much Jetstar's only rival.

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Speaker 1: So now, be man. Quantus wants to lure these Virgin

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Speaker 1: Australia customers back to Jetstar.

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Speaker 2: And they're dangling their shiny rewards program as bait.

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Speaker 1: As part of this new annual membership, Jetstar customers will

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Speaker 1: be able to earn frequent Flyer status credits and points

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Speaker 1: equivalent to Quantus flights. Now.

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Speaker 2: Quantus claims that the goal of expanding the program is

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Speaker 2: to offer more passengers the chance to gain more points

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Speaker 2: and credit.

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Speaker 1: But it seems like the real reason is to squeeze

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Speaker 1: Virgin's business on both ends of the market with their

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Speaker 1: duel brand strategy. Fascinating, So what's the key learning. The

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Speaker 1: duel brand strategy is when a company uses two dis

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Speaker 1: distinct brands to target different customer types in the same market.

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Speaker 2: This allows them to experiment with different service styles and

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Speaker 2: compete at both premium and budget levels.

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Speaker 1: Man Quantisant jets are are a classic example of the

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Speaker 1: dual brand strategy, and.

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Speaker 2: Juzboy it's not that uncommon.

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Speaker 1: Nope, We've seen it with Singapore Airlines, which owns budget

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Speaker 1: airlines Scoot as well.

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Speaker 2: And passengers can earn Chris Flyer loyalty points across both

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Speaker 2: of those airlines.

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Speaker 1: We've also seen it with Toyota and their premium brand

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Speaker 1: Lexus as well.

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Speaker 2: And jesse Boy. In twenty twenty two, the last time

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Speaker 2: jets are reported on passenger numbers, it flew nineteen million

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Speaker 2: passengers in a year, and that.

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Speaker 1: Means nineteen million more people who have the option to

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Speaker 1: snag frequent fly points when they travel.

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Speaker 2: So by capturing both the high and low ends of

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Speaker 2: the market with its loyalty program, it leaves single brand

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Speaker 2: airlines like Old Virgin battling to find their niche.

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Speaker 1: For our second story, Nvidia is keeping the AI boom

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Speaker 1: alive as it outperformed the very lofty expectations of investors,

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Speaker 1: and the whole market rose on the news.

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Speaker 2: The AI crash and burn that skeptics were hoping for

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Speaker 2: has not arrived.

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Speaker 1: Tell me more, Okay, so in Video is the US

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Speaker 1: chip maker whose GPU chips pretty much power every single

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Speaker 1: major AI model in the whole wide world.

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Speaker 2: Fun fact, in Video was worth just four hundred billion

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Speaker 2: US dollars three years ago.

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Speaker 1: And more recently, it became the first company to hit

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Speaker 1: a five trillion US dollar valuation, now Josey Boy.

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Speaker 2: Over the past week, the broader share market has become

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Speaker 2: quite jittery.

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Speaker 1: Yeah, there was a fear of a bubble in AI stocks,

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Speaker 1: especially in Video, which they were concerned might not hit

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Speaker 1: the lofty expectations of investors.

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Speaker 2: But fear not, Juzzy Boy in Video has pulled through

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Speaker 2: once again with this quarter's numbers exceeding investor expectations.

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Speaker 1: We're talking revenue of fifty seven billion US dollars for

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Speaker 1: the quarter, up.

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Speaker 2: Sixty two percent year on year, better than expectations.

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Speaker 1: And for next quarter they're forecasting sixty five billion US dollars.

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Speaker 2: For Josei Boy, who is paying for all these chippys.

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Speaker 1: So I'm glad you asked, because sixty one percent of

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Speaker 1: in Video's revenue comes from four customers name and shame.

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Speaker 1: Well in video calls them customer A, customer B, customer C,

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Speaker 1: and D, with the largest customer accounting for twenty two

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Speaker 1: percent scent of in Videa's entire revenue.

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Speaker 2: We don't know exactly who is who, but everyone assumes

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Speaker 2: this is Microsoft, Amazon, Meta, and open Ai.

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Speaker 1: So investors breeded a sigh of relief after this news, and.

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Speaker 2: It pretty much pulled up the whole market. Given in

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Speaker 2: video's impact these days.

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Speaker 1: So true, So what is the key learning here?

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Speaker 2: When one giant becomes so dominant, its results can move

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Speaker 2: entire indices.

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Speaker 1: And that means the upside is huge, But so is

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Speaker 1: the potential downside.

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Speaker 2: And the bigger in video gets, the more markets rely

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Speaker 2: on it to keep delivering ridiculous growth.

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Speaker 1: If fact, beman in videos share gains this year have

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Speaker 1: accounted for eighteen percent of the entire sm P five

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Speaker 1: hundred total turn for this year.

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Speaker 2: The problem is that if in video ever misses or

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Speaker 2: hits an unexpected speed bump, it will drag the whole

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Speaker 2: market down.

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Speaker 1: Think Microsoft, Think Amazon, Alphabet Meta. The very customers buying

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Speaker 1: all of these chips, in fact, be man Even in Australia,

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Speaker 1: the tech sector gets confidence from in Video.

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Speaker 2: In fact, it was up five point one percent yesterday

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Speaker 2: off the back of the Nvidia news. So for now

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Speaker 2: the results have settled the concerns of investors.

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Speaker 1: But you can only imagine this concern will come up

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Speaker 1: again and again each quarter for in Video given their

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Speaker 1: frothy frothy evaluation.

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Speaker 2: For our third and final story, Adobe has dropped almost

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Speaker 2: two billion US dollars to buy sem Rush so it

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Speaker 2: can beef up its marketing and AI tools.

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Speaker 1: Everyone's favorite PDF overlord is a backshopping again, so tell

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Speaker 1: me more.

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Speaker 2: So. Adobe is the creative software giant behind Photoshop and

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Speaker 2: Illustrator and Premiere Pro and of course Acrobat.

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Speaker 1: Basically the entire design stack used by designers and marketers

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Speaker 1: and video editors.

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Speaker 2: And what about old sem Rush, Well, they're.

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Speaker 1: A marketing platform and they basically help businesses grow their

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Speaker 1: online presence through a lot of data.

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Speaker 2: Yep, they help marketers improve their SEO content marketing and

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Speaker 2: also just spy on competitor's activity.

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Speaker 1: And now Adobe's announced it will acquire sem Rush for

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Speaker 1: one point nine billion US dollars.

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Speaker 2: That is large. A seventy seven point five percent premium

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Speaker 2: on their previous share price.

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Speaker 1: Sounds like a pretty steef price to pay our record.

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Speaker 2: Yep, that's because sem Rush isn't a big revenue machine yet.

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Speaker 1: But Adobe reconds the strategic value of having a marketing

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Speaker 1: platform could be huge for their existing customers.

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Speaker 2: So what is the key learning here?

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Speaker 1: The easiest revenue boost isn't finding new customers, it's given

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Speaker 1: your current ones more reason to stick around.

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Speaker 2: Adobe knows its core audience inside out.

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Speaker 1: We'd been talking designers and marketers, creatives as well as

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Speaker 1: agencies and Josie Boy.

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Speaker 2: These days, those customers don't just create content.

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Speaker 1: Nope, they manage social channels, they write ad campaigns, and

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Speaker 1: they obsess over seo.

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Speaker 2: So rather than finding new customers, Adobe is widening its

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Speaker 2: offerings so it can sell more solutions to the same

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Speaker 2: loyal base.

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Speaker 1: And Spotify did the same thing. It built a huge

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Speaker 1: audience around music streaming.

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Speaker 2: Then it realized those same listeners also wanted podcasts and

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Speaker 2: audiobooksp So.

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Speaker 1: Adobe is now trying to create a product ecosystem so

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Speaker 1: that it's customers never want to leave flux am did

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Speaker 1: you know in the past twenty years, Australian property has

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Speaker 1: delivered an average of seven point seven percent annual growth

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Speaker 1: and the share market well hasn't done too badly either.

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Speaker 1: So if you want to know which investment might have

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Speaker 1: been better, they shore you download the Flux app and

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Speaker 1: check out our latest article Shares First Property.

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Speaker 2: Thanks for listening and we'll see you on Monday