1 00:00:05,120 --> 00:00:06,520 Speaker 1: This is what the Flux. 2 00:00:06,600 --> 00:00:08,920 Speaker 2: I'm Brett and I'm Justin and it's Friday, the twenty 3 00:00:08,920 --> 00:00:09,639 Speaker 2: second of November. 4 00:00:09,760 --> 00:00:11,920 Speaker 1: Jay Way. Last week we spoke about the Federal government 5 00:00:12,000 --> 00:00:14,640 Speaker 1: banning social media apps for teens under the age of sixteen. 6 00:00:14,920 --> 00:00:17,280 Speaker 1: Now the big dogs like TikTok and Meta have been 7 00:00:17,360 --> 00:00:19,759 Speaker 1: warned if you don't enforce these rules, you could cop 8 00:00:19,800 --> 00:00:22,880 Speaker 1: a fifty million dollar five and Juzzy Boy. It's not 9 00:00:23,000 --> 00:00:25,160 Speaker 1: just those two. Snap looks to be the most affected 10 00:00:25,200 --> 00:00:27,720 Speaker 1: here in Australia, with eighty percent of their users under 11 00:00:27,720 --> 00:00:28,920 Speaker 1: the age of twenty. 12 00:00:28,600 --> 00:00:31,840 Speaker 2: Four shots have been fired by the Federal government b Man. Indeed, Floxam, 13 00:00:31,840 --> 00:00:33,280 Speaker 2: if you want to pick up fifty bucks before you 14 00:00:33,320 --> 00:00:35,760 Speaker 2: kick off the weekend, there is always only one place 15 00:00:35,880 --> 00:00:37,639 Speaker 2: you can do this, in the Flux app. If you're 16 00:00:37,680 --> 00:00:39,839 Speaker 2: the first person to answer the three business or finance 17 00:00:39,920 --> 00:00:43,080 Speaker 2: questions correctly, you'll walk away with fifty bucks in your hand. 18 00:00:43,159 --> 00:00:45,040 Speaker 2: To make sure to download the Flux opp turn your 19 00:00:45,040 --> 00:00:47,320 Speaker 2: notifications on to win at money. 20 00:00:47,159 --> 00:00:50,600 Speaker 1: Three victorious stories today, Juzzy Boy, let's do it for 21 00:00:50,640 --> 00:00:53,920 Speaker 1: our first me and you. The QR code ordering startup 22 00:00:53,960 --> 00:00:56,720 Speaker 1: will lay off around ten percent of its workforce just 23 00:00:56,800 --> 00:01:00,440 Speaker 1: one year after merging with its arts rival, Mister Young's. 24 00:01:00,000 --> 00:01:01,520 Speaker 2: Fair to say the honeymoon phase for Me and You 25 00:01:01,640 --> 00:01:04,560 Speaker 2: and Mister Yum is officially over. So tell me more well. 26 00:01:04,640 --> 00:01:06,400 Speaker 1: Jusey Boy and Mister Young and Me and You are 27 00:01:06,440 --> 00:01:09,640 Speaker 1: both mobile ordering platforms for pubs and cafes. 28 00:01:09,680 --> 00:01:11,959 Speaker 2: Both of them were found in Australia in twenty eighteen. 29 00:01:12,080 --> 00:01:14,520 Speaker 1: Both of them specialized in those little QR codes at 30 00:01:14,520 --> 00:01:17,679 Speaker 1: restaurants that lets you order without speaking to a human 31 00:01:17,760 --> 00:01:18,759 Speaker 1: waiter or waitress. 32 00:01:18,959 --> 00:01:21,679 Speaker 2: But being in September twenty twenty three, the two companies 33 00:01:21,840 --> 00:01:23,640 Speaker 2: surprisingly decided to merge. 34 00:01:23,680 --> 00:01:26,200 Speaker 1: Indeed, yep, they were competing against each other with the 35 00:01:26,200 --> 00:01:27,760 Speaker 1: same product for the same customers. 36 00:01:27,800 --> 00:01:29,520 Speaker 2: Yeah, and when they merged, they kept the men you 37 00:01:29,640 --> 00:01:32,160 Speaker 2: name and now claimed to be the world's biggest mobile 38 00:01:32,280 --> 00:01:33,640 Speaker 2: ordering app for pubs and cafes. 39 00:01:33,680 --> 00:01:35,760 Speaker 1: But now Juzi Boy, Me and You is going to 40 00:01:35,800 --> 00:01:37,520 Speaker 1: lay off ten percent of its workforce. 41 00:01:37,560 --> 00:01:39,520 Speaker 2: The reason you may be asking me, man, Yes, they 42 00:01:39,560 --> 00:01:42,320 Speaker 2: are desperate to reach break even in twenty twenty. 43 00:01:42,040 --> 00:01:46,080 Speaker 1: Five, and when a merger takes place, there's often overlapping positions. 44 00:01:46,120 --> 00:01:48,880 Speaker 2: Two HR teams, two legal teams, two sales functions, so 45 00:01:49,000 --> 00:01:50,880 Speaker 2: Jazie Boy, in order to hit break even, Me and 46 00:01:50,920 --> 00:01:52,360 Speaker 2: You has decided it's time to. 47 00:01:52,720 --> 00:01:53,880 Speaker 1: Clear the decks. 48 00:01:54,200 --> 00:01:55,600 Speaker 2: So what is the key learning year? 49 00:01:55,680 --> 00:01:59,640 Speaker 1: Business success isn't all about going fast, It's actually about 50 00:01:59,640 --> 00:02:00,960 Speaker 1: becoming profitable. 51 00:02:00,520 --> 00:02:02,360 Speaker 2: You see, be Man. Before merging with Me and You, 52 00:02:02,440 --> 00:02:06,080 Speaker 2: mister Young had already raised over one hundred million dollars. 53 00:02:05,680 --> 00:02:08,280 Speaker 1: But it hadn't managed to reach profitability yet. 54 00:02:08,400 --> 00:02:12,200 Speaker 2: Mask Growing startups often prioritize expansion to capture market share 55 00:02:12,360 --> 00:02:14,400 Speaker 2: ahead of profitability. 56 00:02:13,720 --> 00:02:15,720 Speaker 1: And mister Young was no different. It's all growth of 57 00:02:15,840 --> 00:02:18,280 Speaker 1: one hundred and thirty five percent year on year in 58 00:02:18,320 --> 00:02:19,119 Speaker 1: twenty twenty two. 59 00:02:19,160 --> 00:02:22,240 Speaker 2: But be Man, this strategy can sometimes and often does, 60 00:02:22,360 --> 00:02:24,520 Speaker 2: come at the cost of profitability. 61 00:02:23,800 --> 00:02:26,680 Speaker 1: Because often growth can be pretty darn expensive. 62 00:02:26,240 --> 00:02:29,400 Speaker 2: Between the hiring of sales staff, building brand awareness, improving 63 00:02:29,400 --> 00:02:30,720 Speaker 2: the actual product. 64 00:02:30,440 --> 00:02:33,720 Speaker 1: And jazyboid. The decision to refocus on profitability instead of 65 00:02:33,760 --> 00:02:37,040 Speaker 1: just growth is often a sign of a maturing business. 66 00:02:36,720 --> 00:02:39,920 Speaker 2: Or an impatient investor pase who want to start seeing 67 00:02:40,000 --> 00:02:40,800 Speaker 2: financial return. 68 00:02:40,919 --> 00:02:43,280 Speaker 1: Either way, the merged Me and You knows that the 69 00:02:43,320 --> 00:02:45,360 Speaker 1: fastest way to get there will be to reduce their 70 00:02:45,400 --> 00:02:46,480 Speaker 1: workforce costs. 71 00:02:46,560 --> 00:02:49,760 Speaker 2: For our second story in video, share price dropped after 72 00:02:49,800 --> 00:02:53,040 Speaker 2: releasing its quarterly results, but its CEO reckons the AI 73 00:02:53,160 --> 00:02:56,200 Speaker 2: gold rush is going full steam ahead Seal two to two. 74 00:02:56,240 --> 00:02:58,560 Speaker 1: If you ask me, Jazzy Boy in Video cannot stop 75 00:02:58,600 --> 00:03:00,440 Speaker 1: and just will not stop, so tell me okay. 76 00:03:00,480 --> 00:03:03,120 Speaker 2: So in Video was founded in nineteen ninety three. 77 00:03:02,960 --> 00:03:07,520 Speaker 1: Specializing in graphics processing units or GPUs for gaming Beman. 78 00:03:07,680 --> 00:03:10,240 Speaker 2: By the mid twenty tens, it began investing heavily in 79 00:03:10,360 --> 00:03:12,919 Speaker 2: using its computer chips for AI, back when everyone else 80 00:03:12,960 --> 00:03:15,360 Speaker 2: was spending their time and energy on virtual reality. Headzepp 81 00:03:15,440 --> 00:03:17,200 Speaker 2: still waiting on the results there and b man, it 82 00:03:17,200 --> 00:03:19,079 Speaker 2: was a pretty good coll point in video because its 83 00:03:19,080 --> 00:03:21,200 Speaker 2: market value has grown to more than three point six 84 00:03:21,280 --> 00:03:22,440 Speaker 2: trillion US dollars. 85 00:03:22,480 --> 00:03:24,800 Speaker 1: So, in other words, it's the most valuable company in 86 00:03:24,840 --> 00:03:27,880 Speaker 1: the whole wide world. See your later, Apple, Amazon, and 87 00:03:27,919 --> 00:03:30,520 Speaker 1: Alphabet And now Jazzy Boy in Video has announced its 88 00:03:30,520 --> 00:03:34,040 Speaker 1: third quarter revenue of just over thirty five billion US 89 00:03:34,080 --> 00:03:35,800 Speaker 1: dollars for the quarter, that is. 90 00:03:35,800 --> 00:03:38,200 Speaker 2: A ninety four percent year on year increase. 91 00:03:38,320 --> 00:03:41,680 Speaker 1: Interestingly, in Video share price dropped two percent after these results. 92 00:03:41,720 --> 00:03:44,560 Speaker 2: Beating expectations just doesn't cut it anymore. Beamn, you've got 93 00:03:44,600 --> 00:03:46,520 Speaker 2: to smash them to make Wall Street happy. 94 00:03:46,600 --> 00:03:48,600 Speaker 1: But given in Video is now the largest company in 95 00:03:48,640 --> 00:03:51,360 Speaker 1: the world, its results hold a lot of sway in 96 00:03:51,400 --> 00:03:52,560 Speaker 1: public share markets. 97 00:03:52,800 --> 00:03:54,640 Speaker 2: Too true, So what is the key learning here? 98 00:03:54,720 --> 00:03:57,480 Speaker 1: A handful of companies hold the key to the entire 99 00:03:57,560 --> 00:03:58,520 Speaker 1: global stock market. 100 00:03:58,560 --> 00:04:00,960 Speaker 2: Get this, Beman and Video a low accounts for six 101 00:04:01,000 --> 00:04:04,360 Speaker 2: point seven percent of the SMP five hundred index and 102 00:04:04,440 --> 00:04:07,240 Speaker 2: Juboy just ten stocks make up thirty percent of the index. 103 00:04:07,320 --> 00:04:09,440 Speaker 2: So be man. The idea that investing in the SMP 104 00:04:09,560 --> 00:04:12,520 Speaker 2: five hundred index is good for diversifying your investment is 105 00:04:12,600 --> 00:04:14,280 Speaker 2: kind of starting to fall apart. 106 00:04:14,320 --> 00:04:16,400 Speaker 1: Too many eggs in too few baskets, if you ask 107 00:04:16,480 --> 00:04:17,040 Speaker 1: my good self. 108 00:04:17,120 --> 00:04:19,680 Speaker 2: Yeah, but be man. With so much market concentration in 109 00:04:19,760 --> 00:04:22,480 Speaker 2: so few companies, it creates a pretty big risk. Well 110 00:04:22,520 --> 00:04:24,880 Speaker 2: be called Josey boy House So well, the success and 111 00:04:24,920 --> 00:04:27,640 Speaker 2: failure of many investments are becoming tied to a small 112 00:04:27,680 --> 00:04:29,240 Speaker 2: group of tech giants. 113 00:04:29,240 --> 00:04:31,720 Speaker 1: So let's say these companies face a downturn. It could 114 00:04:31,880 --> 00:04:33,799 Speaker 1: really ripple through the entire economy. 115 00:04:33,839 --> 00:04:35,719 Speaker 2: And be man, it ain't just investors on the stock 116 00:04:35,760 --> 00:04:39,480 Speaker 2: market who could be effected. Thinking about superfuns international ETFs 117 00:04:39,480 --> 00:04:42,839 Speaker 2: as well. For our third and final story. Jaguar, the 118 00:04:42,880 --> 00:04:45,480 Speaker 2: British car maker, has rolled out a brand spanking new 119 00:04:45,520 --> 00:04:48,320 Speaker 2: logo as part of its plans to transform into an 120 00:04:48,360 --> 00:04:49,840 Speaker 2: electric only brand. 121 00:04:50,000 --> 00:04:52,120 Speaker 1: A heap of backlash coming their way. Juzzy boy, I've 122 00:04:52,160 --> 00:04:53,640 Speaker 1: got my eye on it, So tell me more. 123 00:04:53,600 --> 00:04:56,560 Speaker 2: Okay, so Benman. Jaguars founded in nineteen twenty two in 124 00:04:56,600 --> 00:04:58,720 Speaker 2: the United Kingdom and has been known as a pretty 125 00:04:58,960 --> 00:05:00,760 Speaker 2: iconic British luxury brand. 126 00:05:00,800 --> 00:05:02,839 Speaker 1: We all know that Jaguar perched on the front of 127 00:05:02,839 --> 00:05:04,839 Speaker 1: the car that looks like it's about to leap off 128 00:05:04,920 --> 00:05:05,360 Speaker 1: that be man. 129 00:05:05,480 --> 00:05:07,920 Speaker 2: Back in nineteen ninety nine, Ford acquired Jaguar, and then 130 00:05:07,960 --> 00:05:10,400 Speaker 2: in two thousand and eight during the GFC, Tatar Motors 131 00:05:10,440 --> 00:05:11,279 Speaker 2: acquired Jaguar. 132 00:05:11,440 --> 00:05:12,640 Speaker 1: Just keeps changing hands. 133 00:05:12,440 --> 00:05:15,360 Speaker 2: And the man now Tata is making a pretty bold 134 00:05:15,400 --> 00:05:16,679 Speaker 2: move with the Jaguar brand. 135 00:05:16,720 --> 00:05:19,400 Speaker 1: Yeah, last year they stopped producing any new Jaguar cars 136 00:05:19,440 --> 00:05:20,200 Speaker 1: all gone and. 137 00:05:20,120 --> 00:05:22,039 Speaker 2: It was all part of their plan to transition to 138 00:05:22,080 --> 00:05:23,560 Speaker 2: an electric only brand. 139 00:05:23,680 --> 00:05:26,200 Speaker 1: And as part of this transition, the iconic Jaguar logo 140 00:05:26,279 --> 00:05:28,600 Speaker 1: has been scrapped. 141 00:05:27,920 --> 00:05:30,680 Speaker 2: And in comes the new leaping cat as well as 142 00:05:30,680 --> 00:05:33,000 Speaker 2: a kind of uppercase, kind of lowercase logo. 143 00:05:33,160 --> 00:05:36,040 Speaker 1: And jaziboit with this brand's making new logo. Jaguar plans 144 00:05:36,080 --> 00:05:38,520 Speaker 1: to launch three new electric cars by twenty twenty six, so. 145 00:05:38,520 --> 00:05:40,760 Speaker 2: They made it very clear that it is a totally 146 00:05:40,800 --> 00:05:44,080 Speaker 2: new brand and will not be confused with their existing petro. 147 00:05:43,839 --> 00:05:46,120 Speaker 1: Motives confusing stuff Dozzy boy. So what is the key 148 00:05:46,200 --> 00:05:46,600 Speaker 1: learning here? 149 00:05:46,680 --> 00:05:49,280 Speaker 2: Brand's trying to reinvent themselves need to work a fine 150 00:05:49,320 --> 00:05:52,760 Speaker 2: line between innovation and preserving their legacy. 151 00:05:52,360 --> 00:05:54,960 Speaker 1: See juzzy Boy. A logo is the first impression a 152 00:05:55,040 --> 00:05:59,320 Speaker 1: company makes with its customer Nikes, tic Macas, Golden Arches. 153 00:05:59,120 --> 00:06:00,960 Speaker 2: Loca Cola's red scripted writing. 154 00:06:01,120 --> 00:06:05,520 Speaker 1: So by updating their iconic leaping cat, Jaguar is trying 155 00:06:05,520 --> 00:06:06,680 Speaker 1: to send a message to the market. 156 00:06:06,760 --> 00:06:08,839 Speaker 2: We ain't just another car company doing a bit of petrol, 157 00:06:08,880 --> 00:06:10,520 Speaker 2: a bit of diesel and a bit of electric. 158 00:06:10,680 --> 00:06:12,400 Speaker 1: We are electric. 159 00:06:12,600 --> 00:06:14,919 Speaker 2: But be man. It takes a pretty brave company to 160 00:06:15,000 --> 00:06:16,800 Speaker 2: update a very iconic logo. 161 00:06:16,680 --> 00:06:19,680 Speaker 1: Comes with the risk of alienating existing customers and existing 162 00:06:19,720 --> 00:06:22,279 Speaker 1: fans who have built a strong emotional connection with the 163 00:06:22,320 --> 00:06:23,400 Speaker 1: original design. 164 00:06:23,160 --> 00:06:25,039 Speaker 2: And be man. Might I remind you back in twenty 165 00:06:25,080 --> 00:06:28,360 Speaker 2: ten when fashion retailer Gap unveiled a new logo that 166 00:06:28,520 --> 00:06:29,960 Speaker 2: was a modernized logo. 167 00:06:29,800 --> 00:06:32,479 Speaker 1: And Jazy Boys better say that customers hated it. 168 00:06:32,600 --> 00:06:35,240 Speaker 2: Yep, so much so the Gap reverted to its original 169 00:06:35,279 --> 00:06:37,720 Speaker 2: logo just a week later. Could say the same thing 170 00:06:37,720 --> 00:06:40,000 Speaker 2: here with Jaguar Plasdam. There is only one place to 171 00:06:40,040 --> 00:06:41,960 Speaker 2: be on a Friday. It's not at work, it's not 172 00:06:41,960 --> 00:06:43,560 Speaker 2: at the beach. It is right next to your phone, 173 00:06:43,680 --> 00:06:46,479 Speaker 2: waiting for that Flux notification to come through to your phone. 174 00:06:46,720 --> 00:06:48,840 Speaker 2: If you are the first to answer three questions correctly, 175 00:06:48,920 --> 00:06:51,040 Speaker 2: the key bucks will hit your account to make sure 176 00:06:51,080 --> 00:06:53,640 Speaker 2: to download the Flux outturn on your notifications to win 177 00:06:53,760 --> 00:06:54,239 Speaker 2: at money. 178 00:06:54,320 --> 00:06:57,360 Speaker 1: Thanks for listening and we'll see you on Mondays.