Speaker 1: This is what the flax. I'm Brett and I've justin.
Speaker 1: It's Friday, the twenty first of November, does it? Wait?
Speaker 2: Webjet could be called Hello Webjetty pretty soon. Hello World
Speaker 2: is the old school travel agent with old school shops
Speaker 2: and making the bookings for you. And it's just made
Speaker 2: a three hundred and fifty three million dollar takeover offer
Speaker 2: for Webjets. Next minute, webjets share price spike seventeen percent,
Speaker 2: So watch this airspace.
Speaker 1: It'd be very interesting there be man by time. We
Speaker 1: often hear in Australia that property is the great Australian dream,
Speaker 1: But in terms of financial returns, is that actually stack
Speaker 1: up well? We have done a deep dive comparing the
Speaker 1: returns to the property market, ver's the returns in the
Speaker 1: share market over the last ten years. So if you
Speaker 1: want to learn which one comes out on top, make
Speaker 1: sure to download the Flux app and check out our
Speaker 1: latest article.
Speaker 2: Three riveting Stories Today Juzzy Boy, let's do it for
Speaker 2: our first Quantas is taking the loyalty battle to Virgin
Speaker 2: Australia head on with a new membership program for Jetstar.
Speaker 1: Battle of the Aussi air Lines is on BMN so
Speaker 1: what is the story here?
Speaker 2: Right? So we know Quantus is Australia's biggest domestic and
Speaker 2: international airline, founded in nineteen twenty.
Speaker 1: And it also owns Jetstar, which is the budget friendly
Speaker 1: airline for people who can't justify the full service prices and.
Speaker 2: Who don't need a free biki or tea on their flight.
Speaker 1: Now, be man, get this together. Quantus and Jetstar hold
Speaker 1: over sixty percent market share of the domestic aviation market and.
Speaker 2: Jesus, wait, we know that Virgin holds about thirty percent
Speaker 2: market share and is pretty much Jetstar's only rival.
Speaker 1: So now, be man. Quantus wants to lure these Virgin
Speaker 1: Australia customers back to Jetstar.
Speaker 2: And they're dangling their shiny rewards program as bait.
Speaker 1: As part of this new annual membership, Jetstar customers will
Speaker 1: be able to earn frequent Flyer status credits and points
Speaker 1: equivalent to Quantus flights. Now.
Speaker 2: Quantus claims that the goal of expanding the program is
Speaker 2: to offer more passengers the chance to gain more points
Speaker 2: and credit.
Speaker 1: But it seems like the real reason is to squeeze
Speaker 1: Virgin's business on both ends of the market with their
Speaker 1: duel brand strategy. Fascinating, So what's the key learning. The
Speaker 1: duel brand strategy is when a company uses two dis
Speaker 1: distinct brands to target different customer types in the same market.
Speaker 2: This allows them to experiment with different service styles and
Speaker 2: compete at both premium and budget levels.
Speaker 1: Man Quantisant jets are are a classic example of the
Speaker 1: dual brand strategy, and.
Speaker 2: Juzboy it's not that uncommon.
Speaker 1: Nope, We've seen it with Singapore Airlines, which owns budget
Speaker 1: airlines Scoot as well.
Speaker 2: And passengers can earn Chris Flyer loyalty points across both
Speaker 2: of those airlines.
Speaker 1: We've also seen it with Toyota and their premium brand
Speaker 1: Lexus as well.
Speaker 2: And jesse Boy. In twenty twenty two, the last time
Speaker 2: jets are reported on passenger numbers, it flew nineteen million
Speaker 2: passengers in a year, and that.
Speaker 1: Means nineteen million more people who have the option to
Speaker 1: snag frequent fly points when they travel.
Speaker 2: So by capturing both the high and low ends of
Speaker 2: the market with its loyalty program, it leaves single brand
Speaker 2: airlines like Old Virgin battling to find their niche.
Speaker 1: For our second story, Nvidia is keeping the AI boom
Speaker 1: alive as it outperformed the very lofty expectations of investors,
Speaker 1: and the whole market rose on the news.
Speaker 2: The AI crash and burn that skeptics were hoping for
Speaker 2: has not arrived.
Speaker 1: Tell me more, Okay, so in Video is the US
Speaker 1: chip maker whose GPU chips pretty much power every single
Speaker 1: major AI model in the whole wide world.
Speaker 2: Fun fact, in Video was worth just four hundred billion
Speaker 2: US dollars three years ago.
Speaker 1: And more recently, it became the first company to hit
Speaker 1: a five trillion US dollar valuation, now Josey Boy.
Speaker 2: Over the past week, the broader share market has become
Speaker 2: quite jittery.
Speaker 1: Yeah, there was a fear of a bubble in AI stocks,
Speaker 1: especially in Video, which they were concerned might not hit
Speaker 1: the lofty expectations of investors.
Speaker 2: But fear not, Juzzy Boy in Video has pulled through
Speaker 2: once again with this quarter's numbers exceeding investor expectations.
Speaker 1: We're talking revenue of fifty seven billion US dollars for
Speaker 1: the quarter, up.
Speaker 2: Sixty two percent year on year, better than expectations.
Speaker 1: And for next quarter they're forecasting sixty five billion US dollars.
Speaker 2: For Josei Boy, who is paying for all these chippys.
Speaker 1: So I'm glad you asked, because sixty one percent of
Speaker 1: in Video's revenue comes from four customers name and shame.
Speaker 1: Well in video calls them customer A, customer B, customer C,
Speaker 1: and D, with the largest customer accounting for twenty two
Speaker 1: percent scent of in Videa's entire revenue.
Speaker 2: We don't know exactly who is who, but everyone assumes
Speaker 2: this is Microsoft, Amazon, Meta, and open Ai.
Speaker 1: So investors breeded a sigh of relief after this news, and.
Speaker 2: It pretty much pulled up the whole market. Given in
Speaker 2: video's impact these days.
Speaker 1: So true, So what is the key learning here?
Speaker 2: When one giant becomes so dominant, its results can move
Speaker 2: entire indices.
Speaker 1: And that means the upside is huge, But so is
Speaker 1: the potential downside.
Speaker 2: And the bigger in video gets, the more markets rely
Speaker 2: on it to keep delivering ridiculous growth.
Speaker 1: If fact, beman in videos share gains this year have
Speaker 1: accounted for eighteen percent of the entire sm P five
Speaker 1: hundred total turn for this year.
Speaker 2: The problem is that if in video ever misses or
Speaker 2: hits an unexpected speed bump, it will drag the whole
Speaker 2: market down.
Speaker 1: Think Microsoft, Think Amazon, Alphabet Meta. The very customers buying
Speaker 1: all of these chips, in fact, be man Even in Australia,
Speaker 1: the tech sector gets confidence from in Video.
Speaker 2: In fact, it was up five point one percent yesterday
Speaker 2: off the back of the Nvidia news. So for now
Speaker 2: the results have settled the concerns of investors.
Speaker 1: But you can only imagine this concern will come up
Speaker 1: again and again each quarter for in Video given their
Speaker 1: frothy frothy evaluation.
Speaker 2: For our third and final story, Adobe has dropped almost
Speaker 2: two billion US dollars to buy sem Rush so it
Speaker 2: can beef up its marketing and AI tools.
Speaker 1: Everyone's favorite PDF overlord is a backshopping again, so tell
Speaker 1: me more.
Speaker 2: So. Adobe is the creative software giant behind Photoshop and
Speaker 2: Illustrator and Premiere Pro and of course Acrobat.
Speaker 1: Basically the entire design stack used by designers and marketers
Speaker 1: and video editors.
Speaker 2: And what about old sem Rush, Well, they're.
Speaker 1: A marketing platform and they basically help businesses grow their
Speaker 1: online presence through a lot of data.
Speaker 2: Yep, they help marketers improve their SEO content marketing and
Speaker 2: also just spy on competitor's activity.
Speaker 1: And now Adobe's announced it will acquire sem Rush for
Speaker 1: one point nine billion US dollars.
Speaker 2: That is large. A seventy seven point five percent premium
Speaker 2: on their previous share price.
Speaker 1: Sounds like a pretty steef price to pay our record.
Speaker 2: Yep, that's because sem Rush isn't a big revenue machine yet.
Speaker 1: But Adobe reconds the strategic value of having a marketing
Speaker 1: platform could be huge for their existing customers.
Speaker 2: So what is the key learning here?
Speaker 1: The easiest revenue boost isn't finding new customers, it's given
Speaker 1: your current ones more reason to stick around.
Speaker 2: Adobe knows its core audience inside out.
Speaker 1: We'd been talking designers and marketers, creatives as well as
Speaker 1: agencies and Josie Boy.
Speaker 2: These days, those customers don't just create content.
Speaker 1: Nope, they manage social channels, they write ad campaigns, and
Speaker 1: they obsess over seo.
Speaker 2: So rather than finding new customers, Adobe is widening its
Speaker 2: offerings so it can sell more solutions to the same
Speaker 2: loyal base.
Speaker 1: And Spotify did the same thing. It built a huge
Speaker 1: audience around music streaming.
Speaker 2: Then it realized those same listeners also wanted podcasts and
Speaker 2: audiobooksp So.
Speaker 1: Adobe is now trying to create a product ecosystem so
Speaker 1: that it's customers never want to leave flux am did
Speaker 1: you know in the past twenty years, Australian property has
Speaker 1: delivered an average of seven point seven percent annual growth
Speaker 1: and the share market well hasn't done too badly either.
Speaker 1: So if you want to know which investment might have
Speaker 1: been better, they shore you download the Flux app and
Speaker 1: check out our latest article Shares First Property.
Speaker 2: Thanks for listening and we'll see you on Monday