1 00:00:05,240 --> 00:00:07,840 Speaker 1: This is what the Flux. I'm brat and I'm justin 2 00:00:07,920 --> 00:00:10,399 Speaker 1: and it's Wednesday. They're twenty fourth of September. Does it boit? 3 00:00:10,440 --> 00:00:12,760 Speaker 2: We spoke the other week about the federal government's investment 4 00:00:12,800 --> 00:00:16,000 Speaker 2: in Side Quantum. Well now they're dipping into the federal 5 00:00:16,040 --> 00:00:18,919 Speaker 2: purse strings once again. This time the government has invested 6 00:00:18,960 --> 00:00:22,840 Speaker 2: in Australia's largest semiconductor company, Morse Micro, this time a 7 00:00:22,960 --> 00:00:24,840 Speaker 2: lazy thirty five million bukarooneys. 8 00:00:24,880 --> 00:00:26,799 Speaker 1: Just pull it out of the purse strings. Fan. Have 9 00:00:26,840 --> 00:00:30,000 Speaker 1: you ever heard of the phrase job hugging? I recently 10 00:00:30,040 --> 00:00:32,320 Speaker 1: have job huggings where employees are choosing to stay in 11 00:00:32,320 --> 00:00:35,400 Speaker 1: their current positions instead of shopping around because they're earning 12 00:00:35,440 --> 00:00:38,080 Speaker 1: more by staying poor. Very very interesting study, and we've 13 00:00:38,120 --> 00:00:40,560 Speaker 1: done a deep dive in the Flux app speaking about 14 00:00:40,680 --> 00:00:43,560 Speaker 1: job hugging versus job hopping. Fucks app. If you're thinking 15 00:00:43,600 --> 00:00:45,680 Speaker 1: about your job at the moment, make sure you download. 16 00:00:45,360 --> 00:00:47,120 Speaker 2: The Flux app and take a read of the article 17 00:00:47,240 --> 00:00:50,840 Speaker 2: three monstrous stories today, Dozy boy, let's do it for 18 00:00:50,920 --> 00:00:54,320 Speaker 2: our first. Maya's share price has fallen twenty five percent 19 00:00:54,480 --> 00:00:57,800 Speaker 2: after its poor earnings results shocked its investors. 20 00:00:58,320 --> 00:01:01,480 Speaker 1: Maya's profit plunges and it's got investors bailing, So tell 21 00:01:01,520 --> 00:01:02,320 Speaker 1: me more, be Man. So. 22 00:01:02,480 --> 00:01:05,800 Speaker 2: Maya is an Australian department store founded in nineteen hundred 23 00:01:05,880 --> 00:01:10,319 Speaker 2: that sells everything from clothing and beauty to homewear in electronics. 24 00:01:09,680 --> 00:01:12,240 Speaker 1: And last year it made a near billion dollar acquisition 25 00:01:12,440 --> 00:01:13,880 Speaker 1: of apparel. 26 00:01:13,360 --> 00:01:18,560 Speaker 2: Brands aka the Wardrobe behind Just Jeans, JJ's, Portman's, Your Dotties, 27 00:01:18,680 --> 00:01:19,920 Speaker 2: Your Jackie, Ease. 28 00:01:19,959 --> 00:01:22,080 Speaker 1: All the Finer, Yep, and be Man. This deal was 29 00:01:22,120 --> 00:01:24,160 Speaker 1: made to boost Meyer's profit. 30 00:01:23,920 --> 00:01:26,960 Speaker 2: So despite the market's initial positive response to the acquisition, 31 00:01:27,000 --> 00:01:28,600 Speaker 2: the glamour has worn off fast. 32 00:01:28,720 --> 00:01:31,200 Speaker 1: Yeah. Myers warned that its net profit has fallen thirty 33 00:01:31,280 --> 00:01:33,560 Speaker 1: percent compared to last year, and they reckon It's been 34 00:01:33,560 --> 00:01:36,520 Speaker 1: a tough environment for retail brands with slow consumer spending. 35 00:01:36,560 --> 00:01:39,280 Speaker 1: Plus they've also spent a lot of coin on their 36 00:01:39,319 --> 00:01:42,480 Speaker 1: new Melbourne distribution center, as well as installing new security 37 00:01:42,520 --> 00:01:45,039 Speaker 1: systems at all its retail stores and joy Boy. 38 00:01:45,120 --> 00:01:47,560 Speaker 2: It doesn't help that the newly acquired apparel brands so 39 00:01:47,720 --> 00:01:50,760 Speaker 2: a drop in sales in its first six months under Maya. 40 00:01:50,880 --> 00:01:53,560 Speaker 1: But Beman Meis execs claim that f I twenty five 41 00:01:53,800 --> 00:01:56,520 Speaker 1: was just a transition year. Yeah, they reckon. 42 00:01:56,600 --> 00:01:59,080 Speaker 2: This should be considered a free kick of a year 43 00:01:59,240 --> 00:02:02,240 Speaker 2: because it's just setting the business up for our future growth. 44 00:02:02,720 --> 00:02:04,160 Speaker 1: So what is the key learning year? 45 00:02:04,320 --> 00:02:07,120 Speaker 2: Big ticket investments are always tricky to sell to investors. 46 00:02:07,160 --> 00:02:09,919 Speaker 1: The costs hit immediately, but the payoff may not show 47 00:02:10,000 --> 00:02:10,800 Speaker 1: up for years. 48 00:02:10,840 --> 00:02:13,800 Speaker 2: But sometimes businesses need to cop short term losses and 49 00:02:13,880 --> 00:02:16,160 Speaker 2: bit of pain in order to position themselves for that 50 00:02:16,280 --> 00:02:17,760 Speaker 2: long term success and be man. 51 00:02:17,880 --> 00:02:19,840 Speaker 1: That is the bet that Maya made when it's spent 52 00:02:19,919 --> 00:02:23,320 Speaker 1: heavily on a billion dollar acquisition and upgraded as supply chain. 53 00:02:23,400 --> 00:02:26,360 Speaker 2: The problem is if execution isn't done well, then investor 54 00:02:26,440 --> 00:02:28,280 Speaker 2: confidence can evaporate very quickly. 55 00:02:28,360 --> 00:02:32,240 Speaker 1: Yeah, Maya's distribution center has already faced delays and extra costs. 56 00:02:32,360 --> 00:02:35,120 Speaker 2: In fact, the operational problems at the new distribution center 57 00:02:35,280 --> 00:02:38,760 Speaker 2: cost Maya about twelve million bucks in earnings before interest 58 00:02:38,800 --> 00:02:41,480 Speaker 2: in tax for the first half of FY twenty five, 59 00:02:41,600 --> 00:02:42,040 Speaker 2: and one. 60 00:02:41,880 --> 00:02:44,440 Speaker 1: Of its new brands, Dotty, suffered a near nine percent 61 00:02:44,520 --> 00:02:46,760 Speaker 1: dive in sales over the second half alone. 62 00:02:46,800 --> 00:02:49,840 Speaker 2: So companies like Maya need to strike a careful balancing 63 00:02:49,840 --> 00:02:53,520 Speaker 2: act between keeping investors happy while still growing the profitability 64 00:02:53,600 --> 00:02:54,360 Speaker 2: or else it's. 65 00:02:54,360 --> 00:02:57,000 Speaker 1: Game over before the makeover even begins. 66 00:02:57,200 --> 00:03:01,280 Speaker 2: For our second story, Facebook is trying to cure dating 67 00:03:01,480 --> 00:03:04,840 Speaker 2: swipe fatigue within new AI dating assistant. 68 00:03:04,400 --> 00:03:07,200 Speaker 1: Aikopered Inda House well Man Well. 69 00:03:07,280 --> 00:03:10,720 Speaker 2: Facebook, which is obviously owned by Meta, launched Facebook Dating 70 00:03:10,800 --> 00:03:12,880 Speaker 2: in twenty nineteen, has a bit of a rival to 71 00:03:12,960 --> 00:03:14,280 Speaker 2: Tinder and Bumble. 72 00:03:13,919 --> 00:03:16,880 Speaker 1: And be Man. This has been embedded inside the Facebook gap. 73 00:03:16,760 --> 00:03:19,280 Speaker 2: Because nothing says romance like meeting your soulmate next to 74 00:03:19,320 --> 00:03:22,359 Speaker 2: a photo of your third cousin's birthday barbecue. 75 00:03:21,800 --> 00:03:24,480 Speaker 1: O true and b Man. Meta claims the hundreds of 76 00:03:24,520 --> 00:03:26,800 Speaker 1: thousands of eighteen to twenty nine year olds are creating 77 00:03:26,840 --> 00:03:30,000 Speaker 1: Facebook dating profiles every single month in North America. 78 00:03:30,080 --> 00:03:33,400 Speaker 2: But now Meta has unveiled an AI dating assistant that 79 00:03:33,480 --> 00:03:35,880 Speaker 2: supposedly helps users find their matches. 80 00:03:36,000 --> 00:03:37,880 Speaker 1: Yeah, you could use a prompt like find me a 81 00:03:37,960 --> 00:03:41,120 Speaker 1: Brooklyn girl in tear and metas AI will play with man. 82 00:03:42,080 --> 00:03:44,920 Speaker 2: And not only is Meta's AI becoming your local matchmaker, 83 00:03:45,000 --> 00:03:49,080 Speaker 2: They've also rolled out an auto match feature yeap it 84 00:03:49,200 --> 00:03:52,880 Speaker 2: basically Tinder meets a blind Date and Juzzy Boy. While 85 00:03:52,920 --> 00:03:55,520 Speaker 2: there are no plans to bring this to Australian singletons 86 00:03:55,680 --> 00:03:57,360 Speaker 2: right now, if successful in the US. 87 00:03:57,400 --> 00:04:00,160 Speaker 1: You just never know, especially because Facebook already had what's 88 00:04:00,160 --> 00:04:01,960 Speaker 1: the network effects to make this work? 89 00:04:02,080 --> 00:04:03,720 Speaker 2: Very true? So what is the key learning here? 90 00:04:03,840 --> 00:04:06,600 Speaker 1: Dating apps live and die by network effects. 91 00:04:06,640 --> 00:04:09,560 Speaker 2: The more people that join, the better the app works. 92 00:04:09,680 --> 00:04:12,960 Speaker 2: More users attract more users. But for a new company 93 00:04:13,040 --> 00:04:15,800 Speaker 2: breaking into a market that's dominated by Tinder or Bumble 94 00:04:15,880 --> 00:04:17,120 Speaker 2: or Hinge, that's really. 95 00:04:16,880 --> 00:04:20,440 Speaker 1: Hard, yeah, because those platforms have already built strong network effects. 96 00:04:20,480 --> 00:04:24,040 Speaker 2: But Facebook can leverage metas billions of existing users to 97 00:04:24,080 --> 00:04:25,120 Speaker 2: shortcut the process. 98 00:04:25,160 --> 00:04:27,360 Speaker 1: And this ate the first time that Facebook's leverage its 99 00:04:27,400 --> 00:04:30,520 Speaker 1: existing distribution to scale into a new vertical. 100 00:04:30,560 --> 00:04:33,840 Speaker 2: Remember when selling secondhand goods used to be the domain 101 00:04:33,880 --> 00:04:35,560 Speaker 2: of Trading Post or gum tree. 102 00:04:35,480 --> 00:04:39,200 Speaker 1: Do and then Facebook Marketplace came along and went bang yep. 103 00:04:39,279 --> 00:04:41,560 Speaker 2: And now more than one in three people on Facebook 104 00:04:41,560 --> 00:04:43,760 Speaker 2: in the US use Marketplace each month. 105 00:04:43,839 --> 00:04:46,719 Speaker 1: So Facebook's hoping it can become relevant with the younger 106 00:04:46,720 --> 00:04:50,760 Speaker 1: generation again through boltons to its very core and dated offering. 107 00:04:50,920 --> 00:04:55,040 Speaker 2: For our third and final story, Porsche has just issued 108 00:04:55,080 --> 00:04:57,480 Speaker 2: its fourth profit warning this year as it puts its 109 00:04:57,520 --> 00:04:58,840 Speaker 2: electric vehicle plans on. 110 00:04:58,839 --> 00:05:01,600 Speaker 1: Ice, slamming the brain on electric dreams ben, So what 111 00:05:01,760 --> 00:05:02,440 Speaker 1: is going on here. 112 00:05:02,480 --> 00:05:05,400 Speaker 2: So Porsche is the German luxury car maker that's named 113 00:05:05,400 --> 00:05:08,800 Speaker 2: after the founder of the company, Ferdinand A. Porsche in 114 00:05:08,880 --> 00:05:09,599 Speaker 2: nineteen thirty. 115 00:05:09,640 --> 00:05:12,200 Speaker 1: Porsche is famous for the kN and for the galloping 116 00:05:12,279 --> 00:05:13,640 Speaker 1: horse mascot and Juzi Boy. 117 00:05:13,720 --> 00:05:16,919 Speaker 2: By August twenty twelve, Volkswagen Group owned one hundred percent 118 00:05:16,920 --> 00:05:18,360 Speaker 2: of Porsche. Until twenty twenty two. 119 00:05:18,400 --> 00:05:20,919 Speaker 1: That was when Porsche listed on the Frankfurt Stock Exchange 120 00:05:21,000 --> 00:05:23,560 Speaker 1: and it was the biggest IPO in over a decade. 121 00:05:23,600 --> 00:05:26,560 Speaker 2: But now Porsche has issued its fourth profit warning just this. 122 00:05:26,600 --> 00:05:29,400 Speaker 1: Year yep it warned that operating profits were expected to 123 00:05:29,400 --> 00:05:31,800 Speaker 1: face a one point eight billion euro hit. 124 00:05:32,000 --> 00:05:34,039 Speaker 2: The reason is due to weak demand in China for 125 00:05:34,120 --> 00:05:38,320 Speaker 2: luxury cars, as well as those pesky tariffs in the US. 126 00:05:38,320 --> 00:05:40,000 Speaker 1: Which is Porsche's largest market. 127 00:05:40,080 --> 00:05:42,919 Speaker 2: So now to stem the bleeding, Porsche's shelves plans for 128 00:05:42,960 --> 00:05:45,760 Speaker 2: a luxury EV SUV and Juzy Boy. Its share price 129 00:05:45,800 --> 00:05:48,720 Speaker 2: has skidded so far that Porsche will drop out of 130 00:05:48,800 --> 00:05:50,799 Speaker 2: Germany's DAX benchmark index. 131 00:05:51,320 --> 00:05:52,760 Speaker 1: So what is the key learning here? 132 00:05:52,880 --> 00:05:56,279 Speaker 2: Being part of a benchmark index isn't just a vanity title. 133 00:05:56,320 --> 00:05:58,440 Speaker 2: It can be a golden ticket to investment. 134 00:05:58,480 --> 00:06:00,920 Speaker 1: Dollars. Yeah. When a company and an index based on 135 00:06:01,000 --> 00:06:03,480 Speaker 1: its market size, it means that many passive funds and 136 00:06:03,600 --> 00:06:06,720 Speaker 1: ETFs the track at index need to acquire a shares. 137 00:06:06,560 --> 00:06:09,200 Speaker 2: And this can often drive demand and tends to push 138 00:06:09,200 --> 00:06:10,720 Speaker 2: the company's shares price upward yep. 139 00:06:10,800 --> 00:06:12,800 Speaker 1: And on the flip side, if a company leaves an 140 00:06:12,800 --> 00:06:15,720 Speaker 1: index like Porsche, those same investment funds need to sell 141 00:06:15,800 --> 00:06:17,799 Speaker 1: the share which can create downward pressure. 142 00:06:17,880 --> 00:06:20,839 Speaker 2: Interestingly, and McKinsey study found that the stock price bump 143 00:06:20,880 --> 00:06:23,640 Speaker 2: at inclusion is real, but mostly it's temporary. 144 00:06:23,680 --> 00:06:25,760 Speaker 1: Y The effect of this spike or drop tends to 145 00:06:25,839 --> 00:06:28,400 Speaker 1: level out within about two months after the change. 146 00:06:28,440 --> 00:06:31,039 Speaker 2: For Porsche, losing its DAK spot might be a short 147 00:06:31,120 --> 00:06:33,960 Speaker 2: term financial stepback, but it's even more of a symbolic 148 00:06:34,000 --> 00:06:34,600 Speaker 2: fall from grace. 149 00:06:34,680 --> 00:06:37,600 Speaker 1: Fluxam Despite what you might think, fifteen to twenty four 150 00:06:37,680 --> 00:06:40,200 Speaker 1: year old Aussies are actually a lot less likely to 151 00:06:40,279 --> 00:06:42,520 Speaker 1: job hoped in the same age group ten years ago. 152 00:06:43,040 --> 00:06:45,839 Speaker 1: I'm calling it. Job hugging is the newer job hopping 153 00:06:45,880 --> 00:06:47,600 Speaker 1: and if you want to know why, Flexamma, make sure 154 00:06:47,600 --> 00:06:49,720 Speaker 1: you download the Flux app for a deep dive into 155 00:06:49,839 --> 00:06:50,440 Speaker 1: job hugging. 156 00:06:50,520 --> 00:06:53,280 Speaker 2: Thanks for listening. And we'll see you on Friday.