Speaker 1: This is what the Flux.
Speaker 2: I'm Brett and I'm Justin and it's Friday, the twenty
Speaker 2: second of November.
Speaker 1: Jay Way. Last week we spoke about the Federal government
Speaker 1: banning social media apps for teens under the age of sixteen.
Speaker 1: Now the big dogs like TikTok and Meta have been
Speaker 1: warned if you don't enforce these rules, you could cop
Speaker 1: a fifty million dollar five and Juzzy Boy. It's not
Speaker 1: just those two. Snap looks to be the most affected
Speaker 1: here in Australia, with eighty percent of their users under
Speaker 1: the age of twenty.
Speaker 2: Four shots have been fired by the Federal government b Man. Indeed, Floxam,
Speaker 2: if you want to pick up fifty bucks before you
Speaker 2: kick off the weekend, there is always only one place
Speaker 2: you can do this, in the Flux app. If you're
Speaker 2: the first person to answer the three business or finance
Speaker 2: questions correctly, you'll walk away with fifty bucks in your hand.
Speaker 2: To make sure to download the Flux opp turn your
Speaker 2: notifications on to win at money.
Speaker 1: Three victorious stories today, Juzzy Boy, let's do it for
Speaker 1: our first me and you. The QR code ordering startup
Speaker 1: will lay off around ten percent of its workforce just
Speaker 1: one year after merging with its arts rival, Mister Young's.
Speaker 2: Fair to say the honeymoon phase for Me and You
Speaker 2: and Mister Yum is officially over. So tell me more well.
Speaker 1: Jusey Boy and Mister Young and Me and You are
Speaker 1: both mobile ordering platforms for pubs and cafes.
Speaker 2: Both of them were found in Australia in twenty eighteen.
Speaker 1: Both of them specialized in those little QR codes at
Speaker 1: restaurants that lets you order without speaking to a human
Speaker 1: waiter or waitress.
Speaker 2: But being in September twenty twenty three, the two companies
Speaker 2: surprisingly decided to merge.
Speaker 1: Indeed, yep, they were competing against each other with the
Speaker 1: same product for the same customers.
Speaker 2: Yeah, and when they merged, they kept the men you
Speaker 2: name and now claimed to be the world's biggest mobile
Speaker 2: ordering app for pubs and cafes.
Speaker 1: But now Juzi Boy, Me and You is going to
Speaker 1: lay off ten percent of its workforce.
Speaker 2: The reason you may be asking me, man, Yes, they
Speaker 2: are desperate to reach break even in twenty twenty.
Speaker 1: Five, and when a merger takes place, there's often overlapping positions.
Speaker 2: Two HR teams, two legal teams, two sales functions, so
Speaker 2: Jazie Boy, in order to hit break even, Me and
Speaker 2: You has decided it's time to.
Speaker 1: Clear the decks.
Speaker 2: So what is the key learning year?
Speaker 1: Business success isn't all about going fast, It's actually about
Speaker 1: becoming profitable.
Speaker 2: You see, be Man. Before merging with Me and You,
Speaker 2: mister Young had already raised over one hundred million dollars.
Speaker 1: But it hadn't managed to reach profitability yet.
Speaker 2: Mask Growing startups often prioritize expansion to capture market share
Speaker 2: ahead of profitability.
Speaker 1: And mister Young was no different. It's all growth of
Speaker 1: one hundred and thirty five percent year on year in
Speaker 1: twenty twenty two.
Speaker 2: But be Man, this strategy can sometimes and often does,
Speaker 2: come at the cost of profitability.
Speaker 1: Because often growth can be pretty darn expensive.
Speaker 2: Between the hiring of sales staff, building brand awareness, improving
Speaker 2: the actual product.
Speaker 1: And jazyboid. The decision to refocus on profitability instead of
Speaker 1: just growth is often a sign of a maturing business.
Speaker 2: Or an impatient investor pase who want to start seeing
Speaker 2: financial return.
Speaker 1: Either way, the merged Me and You knows that the
Speaker 1: fastest way to get there will be to reduce their
Speaker 1: workforce costs.
Speaker 2: For our second story in video, share price dropped after
Speaker 2: releasing its quarterly results, but its CEO reckons the AI
Speaker 2: gold rush is going full steam ahead Seal two to two.
Speaker 1: If you ask me, Jazzy Boy in Video cannot stop
Speaker 1: and just will not stop, so tell me okay.
Speaker 2: So in Video was founded in nineteen ninety three.
Speaker 1: Specializing in graphics processing units or GPUs for gaming Beman.
Speaker 2: By the mid twenty tens, it began investing heavily in
Speaker 2: using its computer chips for AI, back when everyone else
Speaker 2: was spending their time and energy on virtual reality. Headzepp
Speaker 2: still waiting on the results there and b man, it
Speaker 2: was a pretty good coll point in video because its
Speaker 2: market value has grown to more than three point six
Speaker 2: trillion US dollars.
Speaker 1: So, in other words, it's the most valuable company in
Speaker 1: the whole wide world. See your later, Apple, Amazon, and
Speaker 1: Alphabet And now Jazzy Boy in Video has announced its
Speaker 1: third quarter revenue of just over thirty five billion US
Speaker 1: dollars for the quarter, that is.
Speaker 2: A ninety four percent year on year increase.
Speaker 1: Interestingly, in Video share price dropped two percent after these results.
Speaker 2: Beating expectations just doesn't cut it anymore. Beamn, you've got
Speaker 2: to smash them to make Wall Street happy.
Speaker 1: But given in Video is now the largest company in
Speaker 1: the world, its results hold a lot of sway in
Speaker 1: public share markets.
Speaker 2: Too true, So what is the key learning here?
Speaker 1: A handful of companies hold the key to the entire
Speaker 1: global stock market.
Speaker 2: Get this, Beman and Video a low accounts for six
Speaker 2: point seven percent of the SMP five hundred index and
Speaker 2: Juboy just ten stocks make up thirty percent of the index.
Speaker 2: So be man. The idea that investing in the SMP
Speaker 2: five hundred index is good for diversifying your investment is
Speaker 2: kind of starting to fall apart.
Speaker 1: Too many eggs in too few baskets, if you ask
Speaker 1: my good self.
Speaker 2: Yeah, but be man. With so much market concentration in
Speaker 2: so few companies, it creates a pretty big risk. Well
Speaker 2: be called Josey boy House So well, the success and
Speaker 2: failure of many investments are becoming tied to a small
Speaker 2: group of tech giants.
Speaker 1: So let's say these companies face a downturn. It could
Speaker 1: really ripple through the entire economy.
Speaker 2: And be man, it ain't just investors on the stock
Speaker 2: market who could be effected. Thinking about superfuns international ETFs
Speaker 2: as well. For our third and final story. Jaguar, the
Speaker 2: British car maker, has rolled out a brand spanking new
Speaker 2: logo as part of its plans to transform into an
Speaker 2: electric only brand.
Speaker 1: A heap of backlash coming their way. Juzzy boy, I've
Speaker 1: got my eye on it, So tell me more.
Speaker 2: Okay, so Benman. Jaguars founded in nineteen twenty two in
Speaker 2: the United Kingdom and has been known as a pretty
Speaker 2: iconic British luxury brand.
Speaker 1: We all know that Jaguar perched on the front of
Speaker 1: the car that looks like it's about to leap off
Speaker 1: that be man.
Speaker 2: Back in nineteen ninety nine, Ford acquired Jaguar, and then
Speaker 2: in two thousand and eight during the GFC, Tatar Motors
Speaker 2: acquired Jaguar.
Speaker 1: Just keeps changing hands.
Speaker 2: And the man now Tata is making a pretty bold
Speaker 2: move with the Jaguar brand.
Speaker 1: Yeah, last year they stopped producing any new Jaguar cars
Speaker 1: all gone and.
Speaker 2: It was all part of their plan to transition to
Speaker 2: an electric only brand.
Speaker 1: And as part of this transition, the iconic Jaguar logo
Speaker 1: has been scrapped.
Speaker 2: And in comes the new leaping cat as well as
Speaker 2: a kind of uppercase, kind of lowercase logo.
Speaker 1: And jaziboit with this brand's making new logo. Jaguar plans
Speaker 1: to launch three new electric cars by twenty twenty six, so.
Speaker 2: They made it very clear that it is a totally
Speaker 2: new brand and will not be confused with their existing petro.
Speaker 1: Motives confusing stuff Dozzy boy. So what is the key
Speaker 1: learning here?
Speaker 2: Brand's trying to reinvent themselves need to work a fine
Speaker 2: line between innovation and preserving their legacy.
Speaker 1: See juzzy Boy. A logo is the first impression a
Speaker 1: company makes with its customer Nikes, tic Macas, Golden Arches.
Speaker 2: Loca Cola's red scripted writing.
Speaker 1: So by updating their iconic leaping cat, Jaguar is trying
Speaker 1: to send a message to the market.
Speaker 2: We ain't just another car company doing a bit of petrol,
Speaker 2: a bit of diesel and a bit of electric.
Speaker 1: We are electric.
Speaker 2: But be man. It takes a pretty brave company to
Speaker 2: update a very iconic logo.
Speaker 1: Comes with the risk of alienating existing customers and existing
Speaker 1: fans who have built a strong emotional connection with the
Speaker 1: original design.
Speaker 2: And be man. Might I remind you back in twenty
Speaker 2: ten when fashion retailer Gap unveiled a new logo that
Speaker 2: was a modernized logo.
Speaker 1: And Jazy Boys better say that customers hated it.
Speaker 2: Yep, so much so the Gap reverted to its original
Speaker 2: logo just a week later. Could say the same thing
Speaker 2: here with Jaguar Plasdam. There is only one place to
Speaker 2: be on a Friday. It's not at work, it's not
Speaker 2: at the beach. It is right next to your phone,
Speaker 2: waiting for that Flux notification to come through to your phone.
Speaker 2: If you are the first to answer three questions correctly,
Speaker 2: the key bucks will hit your account to make sure
Speaker 2: to download the Flux outturn on your notifications to win
Speaker 2: at money.
Speaker 1: Thanks for listening and we'll see you on Mondays.