1 00:00:05,160 --> 00:00:06,560 Speaker 1: This is a lot of flux. 2 00:00:06,600 --> 00:00:09,040 Speaker 2: I'm Brett and I'm justin and it's Friday, the thirtieth 3 00:00:09,080 --> 00:00:09,720 Speaker 2: of day. 4 00:00:09,720 --> 00:00:13,280 Speaker 1: Wait, the latest inflation figures are in. The trimmed mean 5 00:00:13,320 --> 00:00:15,440 Speaker 1: inflation rate reach two point eight percent in the twelve 6 00:00:15,520 --> 00:00:17,439 Speaker 1: months to April. That's a jump from the two point 7 00:00:17,480 --> 00:00:20,119 Speaker 1: six percent in March. This is not the result the 8 00:00:20,160 --> 00:00:23,200 Speaker 1: Reserve Bank was looking for, so at this point experts 9 00:00:23,200 --> 00:00:25,759 Speaker 1: aren't exactly banking on a July rate card. Not what 10 00:00:25,800 --> 00:00:27,160 Speaker 1: we want to hear me, man Neil. 11 00:00:27,320 --> 00:00:29,680 Speaker 2: It's the last day of the Flux Academy. This month 12 00:00:29,800 --> 00:00:32,279 Speaker 2: all about getting a better deal. We give you all 13 00:00:32,280 --> 00:00:35,680 Speaker 2: the tips and tricks to negotiating with your internet provider, 14 00:00:35,840 --> 00:00:38,720 Speaker 2: your electricity provider, even your homeloand provider. So if you 15 00:00:38,760 --> 00:00:40,600 Speaker 2: want the scripts to get a better deal, make sure 16 00:00:40,600 --> 00:00:43,360 Speaker 2: to download the Flux app today and check out the academy. 17 00:00:43,440 --> 00:00:47,120 Speaker 1: Three marvelous stories today, Jasey Boy, let's do it for 18 00:00:47,280 --> 00:00:50,720 Speaker 1: our first ASX listed where a travel group which owns 19 00:00:50,800 --> 00:00:54,320 Speaker 1: where Beds is soaring after seeing its bookings pop and 20 00:00:54,360 --> 00:00:56,560 Speaker 1: at share price pop even more, Where. 21 00:00:56,400 --> 00:00:59,000 Speaker 2: Beds living its best post breakup life be man, So 22 00:00:59,120 --> 00:00:59,640 Speaker 2: tell me more. 23 00:00:59,520 --> 00:01:02,080 Speaker 1: Well does it web Travel Group is the company that 24 00:01:02,160 --> 00:01:03,800 Speaker 1: operates the brand Webbeds. 25 00:01:04,040 --> 00:01:06,600 Speaker 2: They are a travel wholesaler that sells hotel rooms to 26 00:01:06,640 --> 00:01:08,319 Speaker 2: travel agencies in bulk. 27 00:01:08,440 --> 00:01:11,920 Speaker 1: And if Webeds sounds familiar to you, it's because it 28 00:01:12,120 --> 00:01:14,080 Speaker 1: used to be part of the webjet business. 29 00:01:14,080 --> 00:01:17,120 Speaker 2: But in September last year, the Webbeds biers was booming 30 00:01:17,200 --> 00:01:19,959 Speaker 2: and Webjet was not really booming, so the two of 31 00:01:19,959 --> 00:01:21,679 Speaker 2: them consciously uncoupled. 32 00:01:21,720 --> 00:01:25,000 Speaker 1: Yep, Webbeds demerged from Webjet and listed on the ASX 33 00:01:25,080 --> 00:01:26,440 Speaker 1: under that web Travel Group. 34 00:01:26,520 --> 00:01:29,399 Speaker 2: Lots of web going on bman, but now Webeds post 35 00:01:29,480 --> 00:01:31,360 Speaker 2: split glow up is real. Yep. 36 00:01:31,440 --> 00:01:34,479 Speaker 1: Webbeds has seen its total transaction volume jump more than 37 00:01:34,480 --> 00:01:37,039 Speaker 1: twenty percent to four point nine billion bucks for the 38 00:01:37,120 --> 00:01:39,600 Speaker 1: year to March thirty first, but the Man. Despite this, 39 00:01:39,800 --> 00:01:42,319 Speaker 1: Webeds still saw its profit down twenty two percent due 40 00:01:42,319 --> 00:01:44,280 Speaker 1: to a squeeze in their margin. But does it wait? 41 00:01:44,319 --> 00:01:47,960 Speaker 1: The Webbeds investors did not mind one iota with its 42 00:01:47,960 --> 00:01:49,800 Speaker 1: share price jumping fourteen percent. 43 00:01:49,600 --> 00:01:52,080 Speaker 2: Because in a travel sector full of bad news right now, 44 00:01:52,160 --> 00:01:54,080 Speaker 2: Webbeds kind of looked like a rockstar. 45 00:01:54,240 --> 00:01:56,600 Speaker 1: So what is the key learning right here? When an 46 00:01:56,600 --> 00:01:59,560 Speaker 1: industry looks gloomy, A single company bucking the trend can 47 00:01:59,600 --> 00:02:02,960 Speaker 1: become the market's golden child see Jessey Boy. Investors love 48 00:02:02,960 --> 00:02:05,520 Speaker 1: a neat story, and when most companies in one particular 49 00:02:05,600 --> 00:02:09,440 Speaker 1: sector may be struggling, investors tend to assume that everyone's struggling. 50 00:02:09,480 --> 00:02:12,600 Speaker 2: So when flight Center and Corporate Travel Management downgraded their 51 00:02:12,600 --> 00:02:15,639 Speaker 2: growth forecasts, investors assumed that would be the same for 52 00:02:15,680 --> 00:02:16,360 Speaker 2: the whole sector. 53 00:02:16,480 --> 00:02:18,720 Speaker 1: Expectations drop, valuations dip. 54 00:02:18,560 --> 00:02:20,960 Speaker 2: And then boom where Bed steps up with a stronger 55 00:02:21,000 --> 00:02:23,399 Speaker 2: than expected bookings and growth and Juyboy. 56 00:02:23,480 --> 00:02:26,440 Speaker 1: Even though web Bed's net profit after tax dropped twenty 57 00:02:26,440 --> 00:02:28,600 Speaker 1: two percent, investors pretty much shrugged that. 58 00:02:28,560 --> 00:02:31,399 Speaker 2: One off, because when you're the outlier in a struggling industries, 59 00:02:31,560 --> 00:02:33,440 Speaker 2: investors tend to reward you for it. 60 00:02:33,560 --> 00:02:37,040 Speaker 1: For our second story, Hailey Bieber has sold her viral 61 00:02:37,200 --> 00:02:41,000 Speaker 1: beauty brand Road to Elf Beauty for one billion US 62 00:02:41,040 --> 00:02:42,079 Speaker 1: dollarydoes talk. 63 00:02:41,960 --> 00:02:44,440 Speaker 2: About a billion dollar clove? B man? What is the 64 00:02:44,520 --> 00:02:44,959 Speaker 2: tea here? 65 00:02:45,080 --> 00:02:47,840 Speaker 1: Okay? So Road was founded only a couple of years 66 00:02:47,840 --> 00:02:51,320 Speaker 1: ago in twenty twenty two by Hailey Biber aka Haley. 67 00:02:51,040 --> 00:02:54,160 Speaker 2: Baldwin aka Justin Bieber's wife and Stephen Baldwin's. 68 00:02:53,760 --> 00:02:56,920 Speaker 1: Daughter and Kendall Jenner's brunch Frandity and b Man. 69 00:02:57,000 --> 00:02:59,480 Speaker 2: Road has gone from generating ten million US dollars in 70 00:02:59,520 --> 00:03:02,240 Speaker 2: its first to one hundred million US dollars just two 71 00:03:02,320 --> 00:03:02,800 Speaker 2: years later. 72 00:03:03,000 --> 00:03:07,760 Speaker 1: Hailey baber leveraged her reputation and sixty six million social 73 00:03:07,760 --> 00:03:09,640 Speaker 1: media followers to create beauty trends. 74 00:03:09,680 --> 00:03:13,160 Speaker 2: We're talking clean girl esthetic and doughnut glazed skin. 75 00:03:13,240 --> 00:03:16,480 Speaker 1: We're talking eighteen dollar peptide lip treatments. They sold out 76 00:03:16,520 --> 00:03:18,720 Speaker 1: in seventy two hours after launching. But the men, tell 77 00:03:18,760 --> 00:03:21,680 Speaker 1: me more about ELF Beauty. Your favorite well, ELF, which 78 00:03:21,760 --> 00:03:25,080 Speaker 1: stands for Eyes, Lips and Face. Josey Woyan, you know it. 79 00:03:25,080 --> 00:03:27,560 Speaker 1: It's an American cosmetics brand that was founded in two 80 00:03:27,560 --> 00:03:27,960 Speaker 1: thousand and. 81 00:03:27,960 --> 00:03:30,040 Speaker 2: Four, and their main selling point up until now has 82 00:03:30,080 --> 00:03:31,520 Speaker 2: been affordable quality. 83 00:03:31,600 --> 00:03:33,600 Speaker 1: But now a bit of a flip. ELF Beauty is 84 00:03:33,639 --> 00:03:36,160 Speaker 1: dropping one billion US dollars to buy Road as a 85 00:03:36,200 --> 00:03:38,160 Speaker 1: way into the luxury beauty market. 86 00:03:37,920 --> 00:03:40,000 Speaker 2: And be Man. You'd think that people might skip the 87 00:03:40,080 --> 00:03:43,280 Speaker 2: eighteen dollar lip balm when they're struggling to pay for groceries. 88 00:03:42,800 --> 00:03:44,840 Speaker 1: But the hype around Road and the growth in their 89 00:03:44,880 --> 00:03:48,760 Speaker 1: revenue says otherwise. All thanks to the lipstick effects. Oh yeah, 90 00:03:48,800 --> 00:03:50,119 Speaker 1: so what is the key learning here? 91 00:03:50,240 --> 00:03:53,440 Speaker 2: The lipstick effect says that during economic hardship, people still 92 00:03:53,440 --> 00:03:55,360 Speaker 2: treat themselves, just in smaller way. 93 00:03:55,560 --> 00:03:58,200 Speaker 1: Some people even say it's an indication that a recession 94 00:03:58,240 --> 00:03:58,800 Speaker 1: is on the way. 95 00:03:58,920 --> 00:04:01,480 Speaker 2: It makes sense when seems like it's falling apart. People 96 00:04:01,560 --> 00:04:04,160 Speaker 2: can't afford big purchases like a new house, like a 97 00:04:04,200 --> 00:04:07,160 Speaker 2: new car, like a luxury handbag, so they treat themselves 98 00:04:07,160 --> 00:04:11,600 Speaker 2: to the little luxuries instead, like an eighteen dollars lip balm. Exactly, 99 00:04:11,600 --> 00:04:13,680 Speaker 2: and b Man. This theory got popular in two thousand 100 00:04:13,680 --> 00:04:16,480 Speaker 2: and one because sales of LIPSTICKX grew significantly in the 101 00:04:16,560 --> 00:04:20,039 Speaker 2: US during the economic recession that followed the nine eleven attacks. 102 00:04:20,080 --> 00:04:23,520 Speaker 1: Beauty companies were lining their pockets while people lined their lips. 103 00:04:23,800 --> 00:04:26,279 Speaker 2: Essay Lauder, which is a leader in the premium beauty space, 104 00:04:26,360 --> 00:04:29,120 Speaker 2: they saw an eleven percent increase in lipstick sales during 105 00:04:29,120 --> 00:04:29,479 Speaker 2: this time. 106 00:04:29,560 --> 00:04:31,480 Speaker 1: It happened again in two thousand and eight during the 107 00:04:31,520 --> 00:04:33,800 Speaker 1: global financial crisis, so b Man, well, it. 108 00:04:33,760 --> 00:04:37,159 Speaker 2: Seemed counterintuitive to enter the premium beauty market. In twenty 109 00:04:37,200 --> 00:04:39,679 Speaker 2: twenty two, when post COVID inflation was at its peak. 110 00:04:39,880 --> 00:04:43,400 Speaker 2: Road actually launched its premium brand at just the right time. 111 00:04:43,520 --> 00:04:46,920 Speaker 1: For our third and final story, in video, the AI 112 00:04:47,000 --> 00:04:50,800 Speaker 1: chip king has forecasted a massive quarter of growth despite 113 00:04:50,839 --> 00:04:52,119 Speaker 1: their slowdown in China. 114 00:04:52,320 --> 00:04:54,560 Speaker 2: Cannot stop and will not stop in video right now, 115 00:04:54,600 --> 00:04:56,560 Speaker 2: be man, so tell me more so dozy? Wait? 116 00:04:56,600 --> 00:04:59,760 Speaker 1: We know the story of Nvidia started building graphics cards 117 00:04:59,800 --> 00:05:02,040 Speaker 1: for gamers back in the early nineties so that we 118 00:05:02,080 --> 00:05:03,120 Speaker 1: could play Mortal Kombat. 119 00:05:03,720 --> 00:05:07,480 Speaker 2: Now, be man, it absolutely dominates the global AI hardware market. 120 00:05:07,560 --> 00:05:09,480 Speaker 1: Get this one. Just two years ago and Vidio had 121 00:05:09,480 --> 00:05:11,599 Speaker 1: twenty seven billion US dollars in annual sales. 122 00:05:11,680 --> 00:05:14,360 Speaker 2: Now it's pushing towards two hundred billion US dollars, which 123 00:05:14,360 --> 00:05:16,040 Speaker 2: is a near eight times jump. 124 00:05:15,880 --> 00:05:19,160 Speaker 1: And not even Haley Beaver's lip balm can move that fast. 125 00:05:19,360 --> 00:05:22,440 Speaker 2: So man, you may remember that the US government banned 126 00:05:22,480 --> 00:05:25,560 Speaker 2: in Video from selling its best quality chips to China, and. 127 00:05:25,480 --> 00:05:28,480 Speaker 1: That wiped out eight billion US dollars in potential revenue. 128 00:05:28,480 --> 00:05:30,919 Speaker 2: But that news it was like water offer computer chips 129 00:05:30,960 --> 00:05:34,760 Speaker 2: back for video because it's forecasting seventy billion US dollars 130 00:05:34,800 --> 00:05:36,279 Speaker 2: in revenue for just this quarter. 131 00:05:36,480 --> 00:05:38,599 Speaker 1: Well, in Video is being squeezed out of China. Other 132 00:05:38,800 --> 00:05:41,880 Speaker 1: policy changers may actually help open up new markets like 133 00:05:41,920 --> 00:05:42,800 Speaker 1: the Middle East. 134 00:05:42,600 --> 00:05:45,440 Speaker 2: And the man Despite other AI chips being developed, in 135 00:05:45,520 --> 00:05:49,040 Speaker 2: Video's first mover advantage has proven quite a benefit for them. 136 00:05:49,040 --> 00:05:50,320 Speaker 1: So what is the key learning here? 137 00:05:50,480 --> 00:05:53,360 Speaker 2: First mover advantage is the competitive edge that a company 138 00:05:53,400 --> 00:05:55,920 Speaker 2: gets by being the first major player in a new 139 00:05:56,040 --> 00:05:57,440 Speaker 2: or untapped market. 140 00:05:57,160 --> 00:06:00,440 Speaker 1: While others were still focused on traditional CPU. Who's in 141 00:06:00,560 --> 00:06:03,039 Speaker 1: Vidia developed GPU based AI chips? 142 00:06:03,080 --> 00:06:05,360 Speaker 2: Looking at you, Intel, an IBM behind the eight ball? 143 00:06:05,520 --> 00:06:08,039 Speaker 1: Yes, now in Video owns around ninety percent of the 144 00:06:08,120 --> 00:06:11,599 Speaker 1: AI accelerated chip market and Josey Boy, that headstart means 145 00:06:11,640 --> 00:06:14,760 Speaker 1: in VideA can effectively set the standards in this industry. 146 00:06:14,400 --> 00:06:17,000 Speaker 2: And also set pricing, which is at a premium. 147 00:06:17,040 --> 00:06:20,520 Speaker 1: First mover advantage doesn't always have a lasting impact, though. 148 00:06:20,760 --> 00:06:22,719 Speaker 2: Hm, might I remind you of another company that gained 149 00:06:22,720 --> 00:06:25,080 Speaker 2: a huge market share but was not the first mover. 150 00:06:25,440 --> 00:06:29,120 Speaker 1: Yes, Google came to the search industry five years after 151 00:06:29,480 --> 00:06:31,440 Speaker 1: this concept was invented. 152 00:06:31,040 --> 00:06:33,440 Speaker 2: But now it has around ninety percent market share in 153 00:06:33,520 --> 00:06:37,880 Speaker 2: search rip ask Jeeves. So while in Videas cemented its 154 00:06:37,920 --> 00:06:40,599 Speaker 2: dominance for now, you can bet your bottom dollar b Man, 155 00:06:40,680 --> 00:06:43,560 Speaker 2: there will be and are others chasing fluxam Is there 156 00:06:43,640 --> 00:06:47,280 Speaker 2: any better feeling than saving money on electricity? Internet and 157 00:06:47,279 --> 00:06:49,080 Speaker 2: make sure to download the Flex app and check out 158 00:06:49,120 --> 00:06:51,040 Speaker 2: the academy for the very last day today. 159 00:06:51,120 --> 00:06:53,680 Speaker 1: Thanks for listening and we'll see you on Monday.