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Speaker 1: This is what the Flux.

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Speaker 2: I'm Brad, I'm justin and it's Monday, the fourteenth of May.

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Speaker 1: Wait, we know that big tech companies like Meta, Amazon,

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Speaker 1: Alphabet have been on a big rally recently. But now

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Speaker 1: we seek some of the founders and company presidents of

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Speaker 1: these companies selling big chunks of their shares. Jeff Bezos

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Speaker 1: recently sold eight point five billion dollars worth of Amazon stock.

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Speaker 1: The Zak sold one billion dollars worth of Meta stock.

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Speaker 1: Is this a sign that we've officially hit the top

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Speaker 1: of the tech market?

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Speaker 2: Good question, but you've got a follow the leads of

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Speaker 2: the leaders. Man, are you familiar with the difference between

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Speaker 2: good debts and bad debts?

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Speaker 1: I am Good debts help you grow your wealth.

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Speaker 2: Bad debts bring you down, and we cover it all

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Speaker 2: in the Flux Academy this month. It is a corker

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Speaker 2: of a course and there are prizes for the winners

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Speaker 2: of this month, So make sure to download the Flux

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Speaker 2: app and check out the Academy.

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Speaker 1: Three corkworthy stories today, Justinroy, let's do it for our first.

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Speaker 1: Aria Group, the owner of real estate dot com dot au,

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Speaker 1: has seen a twenty four percent jump in revenue for

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Speaker 1: the first quarter after a large rise in residential listings

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Speaker 1: in Sydney and in Melbourne.

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Speaker 2: Sydney in Melbourne carrying the rest of Australia once again,

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Speaker 2: tell me more well.

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Speaker 1: Jazzyboy Aria Group is the Australian property listings company and

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Speaker 1: website behind real estate dot com dot Au.

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Speaker 2: You know, the website you used to find houses that

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Speaker 2: are both in your price range and well well well

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Speaker 2: beyond it too.

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Speaker 1: Uh huh. But Jazzyboy Aria Group also owns a whole

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Speaker 1: lot of other brands like Flatmates, dot com dot Au,

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Speaker 1: mortgage Broker, Mortgage Choice and also real Commercial.

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Speaker 2: And now be Man. Aria Group has reported a twenty

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Speaker 2: four percent jump in its revenue for the March quarter

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Speaker 2: tour whopping three hundred and thirty four million bakaronis.

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Speaker 1: That's because there was a big jump in residential listings

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Speaker 1: on its platform, particularly in Sydney and in Melbourne. Even

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Speaker 1: though they saw a decline in rental listings, they still

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Speaker 1: saw rent revenue jump.

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Speaker 2: That's because they implemented a pretty hefty price rise which

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Speaker 2: didn't really impact their demand.

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Speaker 1: Interesting, juzzy boy, So what is the key learning here?

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Speaker 2: Rice Elasticity of demand measures how the demand for a

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Speaker 2: goods or a service changes as its price changes.

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Speaker 1: For example, if the price of your favorite allusion free

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Speaker 1: cereal goes up by ten percent, you and all the

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Speaker 1: other gluten free fiends Judy Boy may look for another

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Speaker 1: brand instead.

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Speaker 2: And that would mean the price is quite elastic.

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Speaker 1: But in the context of Aria Group, it seems like

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Speaker 1: their pricing is quite inelastic.

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Speaker 2: That means that users are willing to pay higher prices

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Speaker 2: for listings, probably because there aren't many good alternatives yep.

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Speaker 1: Aria Group gets an average of twelve million visitors each

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Speaker 1: month across web and mobile, and.

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Speaker 2: That's seventy eight percent more monthly visitors than their nearest

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Speaker 2: competitor domain and this allows Aria to increase their prices

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Speaker 2: without significantly losing demand or volume.

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Speaker 1: For our second story, baby Bunting, Australia's largest baby retail chain,

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Speaker 1: Passena chares drop more than twenty two percent after a

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Speaker 1: few concerns around cost of living pressures for their valuable customers.

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Speaker 2: You mean new parents are holding off on buying their

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Speaker 2: two thousand dollars prams b Man all right.

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Speaker 1: Baby Bunting started way back nineteen seventy nine and it

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Speaker 1: listed on the ASX in twenty fifteen.

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Speaker 2: It's pretty much the playground for all soon to be

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Speaker 2: anxious parents and new anxious parents as well, or as.

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Speaker 1: Some call it, the Disney world for baby products from

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Speaker 1: prams to cots, to car seats, nurseries.

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Speaker 2: And let me tell you, be man, these little colorful

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Speaker 2: products and nifty devices. They cost a pretty penny, but

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Speaker 2: do wait.

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Speaker 1: Late last week, Baby Bunting released a pretty concerning trading

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Speaker 1: update yep.

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Speaker 2: They warned that their net profit is expected to be

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Speaker 2: between two and four million dollars for this financial year, which.

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Speaker 1: Is about sixty nine percent less than last financial year.

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Speaker 2: And last financial year was already a fifty one percent

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Speaker 2: drop on FI twenty twenty two's net profit.

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Speaker 1: As a result, its share price dropped more than twenty

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Speaker 1: two percent.

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Speaker 2: And the reason you ask, well, Baby Bunting reckon that

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Speaker 2: the cost of living crisis has been weighing down its performance.

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Speaker 1: And they reckon their customers. Generally, young parents are more

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Speaker 1: sensitive to cost of living pressures than other demographics.

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Speaker 2: So what is the key learning here?

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Speaker 1: Not all economic downturns affect all people the same war.

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Speaker 2: While a slower economy and increasing interest rates has an

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Speaker 2: impact on everyone, it hurts certain demographics more than others.

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Speaker 1: Yet this little stat Juzzy Boy, Australians age in their

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Speaker 1: thirties and forties are the most indebted borrowers in the nation.

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Speaker 2: Which means that when the RBA pulls out a cash

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Speaker 2: rate rise, they are the generation that are hurting the most.

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Speaker 1: In fact, Australians in their thirties and early forties were

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Speaker 1: over leveraged, with debt levels up to triple the size

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Speaker 1: of their incomes.

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Speaker 2: That's about six times as large as people aged over

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Speaker 2: sixty five.

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Speaker 1: And might I remind you that this over leveraged demographic

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Speaker 1: is a baby Bunting's core customer.

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Speaker 2: So with increased cost of living and increased mortgage or payments,

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Speaker 2: it's no surprise the baby bunting is feeling the pain.

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Speaker 1: For our third and final story, Airbnb shares dropped eight

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Speaker 1: percent last week after it warned investors about its second

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Speaker 1: quarter performance and its new focus on experiences.

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Speaker 2: This one may have been disappointing for investors, but can't

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Speaker 2: be as disappointing as finding out your Airbnb host cut

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Speaker 2: fished you into the property.

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Speaker 1: So what is the story here, Well, Juzzyboy, Airbnb started

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Speaker 1: in two thousand and seven with an air mattress in

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Speaker 1: a living room to create a bed and a breakfast, and.

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Speaker 2: It's since grown with over five million hosts and over

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Speaker 2: one and a half billion guests around the world.

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Speaker 1: Now, Airbnb has just announced its first quarter revenue, which

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Speaker 1: increased eighteen percent to hello two point one four billion

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Speaker 1: US dollars.

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Speaker 2: That's good, but at the same time, it's forecasted revenue

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Speaker 2: for the second quarter is expected to go well below

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Speaker 2: investor expectations.

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Speaker 1: Now that's partly because of currency exchange rates and partly

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Speaker 1: because of the timing of Easter holidays, which fell into

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Speaker 1: quarter one.

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Speaker 2: This year, and this news set Airbnb share price tumbling

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Speaker 2: eight percent.

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Speaker 1: But this news hasn't got Airbnb two phase because because

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Speaker 1: Airbnb is focusing on getting customers hyped up about experiential stays.

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Speaker 2: So what is the key learning here?

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Speaker 1: Sometimes as companies grow and evolve and try new revenue streams,

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Speaker 1: they eventually come back full circle to their initial offering.

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Speaker 2: You seeb Man, airbb started off as an accommodation business

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Speaker 2: that offered a unique local experience.

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Speaker 1: Doesn't get more unique than CouchSurfing at a's place with

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Speaker 1: their colorful bed sheets and unfamiliar cooking smells.

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Speaker 2: But over time, as Airbnb's become a go to for

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Speaker 2: finding a place to stay, it's also become more of

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Speaker 2: a utility like a hotel replacement.

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Speaker 1: Huh. And now it seems like Airbnb is going back

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Speaker 1: to its roots in order to stand out by going

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Speaker 1: hard on unique experiences.

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Speaker 2: Again, that's because that's what their customers want when they're traveling.

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Speaker 1: So time will tell whether leaning back into their core

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Speaker 1: will also drive an increase in revenue and in profits

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Speaker 1: for Airbnb.

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Speaker 2: Fox Fam, We're very sad to see break over the

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Speaker 2: next four weeks, but very excited to bring Hush Deep

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Speaker 2: into the podcast once again.

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Speaker 1: That's right, Flux Fam. I'll be on a little break

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Speaker 1: for the next few weeks or so, but you'll be

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Speaker 1: in very capable hands with.

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Speaker 2: HD to have a great break, rest up, and come

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Speaker 2: back fit and firing. What the Flux in due. Thanks

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Speaker 2: Jessie Boyd, thanks for listening, and HG and I will

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Speaker 2: see you on Wednesday.