1 00:00:05,200 --> 00:00:08,440 Speaker 1: This is what the flux I'm brand, I'm justin And Friday, 2 00:00:08,480 --> 00:00:09,840 Speaker 1: the sixteenth of May, Josie Boy. 3 00:00:09,840 --> 00:00:13,360 Speaker 2: Australia's unemployment rate held steady and four point one percent 4 00:00:13,440 --> 00:00:15,480 Speaker 2: for March. And this is the last key piece of 5 00:00:15,520 --> 00:00:18,920 Speaker 2: economic data before the RBA meets next Monday and Tuesday. 6 00:00:18,920 --> 00:00:22,640 Speaker 2: And Jessie Boy, despite all the uncertainty in the world, 7 00:00:22,840 --> 00:00:24,720 Speaker 2: all the big four banks here in Australia think that 8 00:00:24,800 --> 00:00:26,639 Speaker 2: we'll see a rate cut next week. 9 00:00:26,720 --> 00:00:29,320 Speaker 1: Brusting my fingers and motto's fox dam. If you've been 10 00:00:29,320 --> 00:00:31,360 Speaker 1: listening to the pod this week, you are in the 11 00:00:31,400 --> 00:00:33,960 Speaker 1: prime position to win fifty bucks today. All you've got 12 00:00:34,000 --> 00:00:36,440 Speaker 1: to do is make sure you're competing in quick sticks 13 00:00:36,479 --> 00:00:39,000 Speaker 1: against the rest of the flux Dam three questions. If 14 00:00:39,000 --> 00:00:41,160 Speaker 1: you're the first to answer them all correctly, fifty bucks 15 00:00:41,200 --> 00:00:43,080 Speaker 1: is all yours. To make sure to download the Flux out, 16 00:00:43,120 --> 00:00:45,280 Speaker 1: turn your notifications on your chance to win today. 17 00:00:45,400 --> 00:00:48,400 Speaker 2: Three pure stories today, Juzzy Boy, let's do it for 18 00:00:48,479 --> 00:00:51,640 Speaker 2: our first combank has seen its cash profit jump to 19 00:00:51,720 --> 00:00:54,480 Speaker 2: over two point six billion dollars for the quarter as 20 00:00:54,480 --> 00:00:56,680 Speaker 2: it pushes hard into business banking. 21 00:00:57,160 --> 00:00:59,720 Speaker 1: Big Yellow getting the bag once again being answer telling 22 00:00:59,720 --> 00:01:00,080 Speaker 1: me all. 23 00:01:00,120 --> 00:01:02,960 Speaker 2: So Commonwealth Bank is the Aussie bank with nearly sixteen 24 00:01:02,960 --> 00:01:04,319 Speaker 2: million customers. 25 00:01:03,920 --> 00:01:06,800 Speaker 1: ZACBA man, it's not only Australia's largest bank, but also 26 00:01:06,880 --> 00:01:09,240 Speaker 1: the most valuable company on the ASX. 27 00:01:09,280 --> 00:01:13,160 Speaker 2: So when Combank releases its quarterly results, everyone's ears prick up. 28 00:01:13,000 --> 00:01:15,760 Speaker 1: And a man once again. Combank did not disappoint as 29 00:01:15,800 --> 00:01:18,399 Speaker 1: it announced a two point six billion dollar cash profit 30 00:01:18,480 --> 00:01:20,440 Speaker 1: for just the March quarter alone. 31 00:01:20,520 --> 00:01:23,640 Speaker 2: Yeah, Combank could purchase nine entertainment, which is one quarter's 32 00:01:23,880 --> 00:01:24,560 Speaker 2: cash profit. 33 00:01:24,680 --> 00:01:27,319 Speaker 1: Wow, and that's a six percent rise on the previous quarter. 34 00:01:27,400 --> 00:01:30,360 Speaker 2: And while Combank typically dominates the home loan sector, it's 35 00:01:30,360 --> 00:01:32,600 Speaker 2: also been picking up in the business banking space too. 36 00:01:32,920 --> 00:01:35,959 Speaker 1: Combank saw its business loans jump by more than nine percent, 37 00:01:36,040 --> 00:01:38,559 Speaker 1: which is a lot faster than the growth in other banks. 38 00:01:38,560 --> 00:01:40,920 Speaker 2: But its secret source when it comes to continuing to 39 00:01:40,959 --> 00:01:44,000 Speaker 2: grow is also in the highly competitive and highly lucrative 40 00:01:44,080 --> 00:01:44,840 Speaker 2: home loan space. 41 00:01:44,920 --> 00:01:47,880 Speaker 1: Yep. And while most banks lean on mortgage brokers, CBA 42 00:01:47,960 --> 00:01:50,360 Speaker 1: is focusing on growing its own home loan book through 43 00:01:50,400 --> 00:01:51,360 Speaker 1: its own channels. 44 00:01:51,400 --> 00:01:54,040 Speaker 2: That'd be its own website, its own branches. So b man, 45 00:01:54,200 --> 00:01:57,080 Speaker 2: what is the key learning here? While mortgage broking brings 46 00:01:57,160 --> 00:02:00,000 Speaker 2: volume direct channels bring dem profits. 47 00:02:00,200 --> 00:02:02,960 Speaker 1: Get this, be man. Mortgage brokers were responsible for nearly 48 00:02:03,000 --> 00:02:05,520 Speaker 1: seventy five percent of all new home loans in the 49 00:02:05,560 --> 00:02:07,000 Speaker 1: September twenty twenty four quarter. 50 00:02:07,080 --> 00:02:09,520 Speaker 2: But Combank is bucking the trend and making a bank 51 00:02:09,600 --> 00:02:10,160 Speaker 2: while doing it. 52 00:02:10,240 --> 00:02:12,720 Speaker 1: Yeah. Combank reported that sixty eight percent of its new 53 00:02:12,720 --> 00:02:16,520 Speaker 1: mortgages came through its own proprietary channels over the past quarter. 54 00:02:16,280 --> 00:02:19,720 Speaker 2: And Jazi boy mortgages that come directly from proprietary channels 55 00:02:19,760 --> 00:02:21,040 Speaker 2: are much more profitable. 56 00:02:21,080 --> 00:02:24,160 Speaker 1: In fact, broker originated loans are reported to be around 57 00:02:24,160 --> 00:02:27,880 Speaker 1: twenty to thirty percent less profitable according to Kombank's financial results. 58 00:02:27,880 --> 00:02:30,679 Speaker 2: That's because of the upfront commissions and trail commissions given 59 00:02:30,720 --> 00:02:32,240 Speaker 2: to brokers on every loan written. 60 00:02:32,320 --> 00:02:35,880 Speaker 1: So this strategic shift allows Combank to have greater control 61 00:02:35,960 --> 00:02:37,600 Speaker 1: over the customer experience. 62 00:02:37,160 --> 00:02:39,399 Speaker 2: And potentially improve their profitability too. 63 00:02:39,880 --> 00:02:43,280 Speaker 1: For our second story, e Toro, the shared trading platform, 64 00:02:43,360 --> 00:02:45,720 Speaker 1: has popped more than forty percent on its share market 65 00:02:45,760 --> 00:02:48,840 Speaker 1: debut after investors were scrambling to get a slice. 66 00:02:48,880 --> 00:02:51,280 Speaker 2: So now investors are buying and selling e Toro stock 67 00:02:51,360 --> 00:02:54,480 Speaker 2: on the e Toro stock trading platform. Very meta, tell 68 00:02:54,520 --> 00:02:54,720 Speaker 2: me more? 69 00:02:54,760 --> 00:02:57,400 Speaker 1: Okay, so e Toro is the Israeli trading and investment 70 00:02:57,400 --> 00:03:00,280 Speaker 1: platform that was founded in two thousand and seven and it. 71 00:03:00,280 --> 00:03:03,360 Speaker 2: Has grown to over thirty eight million registered users around 72 00:03:03,360 --> 00:03:04,079 Speaker 2: the world. 73 00:03:03,919 --> 00:03:06,680 Speaker 1: Largely off the back of its very heavy marketing. 74 00:03:06,400 --> 00:03:08,639 Speaker 2: YEP it ran a heap of ads with Alec Baldwin, 75 00:03:08,720 --> 00:03:11,760 Speaker 2: as well as sponsoring five English Premier League clubs. 76 00:03:11,440 --> 00:03:14,640 Speaker 1: Five Bundeslegger clubs in Germany and even Rugby Australia. 77 00:03:14,680 --> 00:03:17,160 Speaker 2: But it's best known for letting its users trade and 78 00:03:17,280 --> 00:03:20,000 Speaker 2: follow others when it comes to their investments in stocks 79 00:03:20,000 --> 00:03:21,040 Speaker 2: and crypto and they man. 80 00:03:21,080 --> 00:03:23,880 Speaker 1: On Wednesday, Etro listed on the Nasdaq and it shares 81 00:03:24,000 --> 00:03:25,280 Speaker 1: absolutely pop YEP. 82 00:03:25,360 --> 00:03:27,880 Speaker 2: Its shares were priced at fifty two bucks but jumped 83 00:03:27,880 --> 00:03:30,200 Speaker 2: to over seventy four bucks at one point, which. 84 00:03:30,040 --> 00:03:32,079 Speaker 1: Was a forty two percent gain in the same day. 85 00:03:32,120 --> 00:03:35,000 Speaker 2: And duzzy boy, that's because the IPO was oversubscribed by 86 00:03:35,000 --> 00:03:36,280 Speaker 2: more than twenty times. 87 00:03:36,320 --> 00:03:38,280 Speaker 1: That's like throwing a party for fifty people and having 88 00:03:38,360 --> 00:03:40,160 Speaker 1: one thousand people trying to squeeze in. 89 00:03:40,440 --> 00:03:43,280 Speaker 2: And e Toro's debut was a very good sign for 90 00:03:43,360 --> 00:03:46,320 Speaker 2: the potential of other companies looking to IPO in the 91 00:03:46,400 --> 00:03:47,480 Speaker 2: not too distant future. 92 00:03:47,600 --> 00:03:48,880 Speaker 1: So what is the key learning here? 93 00:03:48,920 --> 00:03:51,880 Speaker 2: A key signal of IPO success is over subscription. 94 00:03:52,000 --> 00:03:54,800 Speaker 1: That's when demand for shares exceeds the number of shares 95 00:03:54,840 --> 00:03:55,440 Speaker 1: that are offered. 96 00:03:55,520 --> 00:03:57,920 Speaker 2: In e Toro's case, the demand was so high that 97 00:03:57,920 --> 00:04:00,640 Speaker 2: they increased the number of shares offered from ten million 98 00:04:00,760 --> 00:04:02,280 Speaker 2: to nearly twelve million shares. 99 00:04:02,080 --> 00:04:05,280 Speaker 1: And despite that, the demand was reportedly still twenty times that. 100 00:04:05,440 --> 00:04:08,080 Speaker 2: The good thing for etro is that over subscription can 101 00:04:08,160 --> 00:04:09,200 Speaker 2: create high and as. 102 00:04:09,120 --> 00:04:11,320 Speaker 1: A result, it can drive the share price well above 103 00:04:11,520 --> 00:04:13,000 Speaker 1: the IPO price on day one. 104 00:04:13,000 --> 00:04:16,760 Speaker 2: But jaziboy hot debut doesn't always mean long term outperformance. 105 00:04:16,839 --> 00:04:18,799 Speaker 1: In fact, be man let's wine back to twenty twenty 106 00:04:18,800 --> 00:04:22,000 Speaker 1: one peak lockdowns, peak meme stocks, peak money printing. 107 00:04:22,200 --> 00:04:24,800 Speaker 2: That year, a record three hundred and ninety seven companies 108 00:04:24,839 --> 00:04:26,920 Speaker 2: went public on the Nasdaq, but most. 109 00:04:26,720 --> 00:04:29,400 Speaker 1: Of the class of twenty twenty one has performed very 110 00:04:29,440 --> 00:04:31,320 Speaker 1: badly in the aftermarket. 111 00:04:30,839 --> 00:04:33,480 Speaker 2: Yep, only seventeen percent of these public companies and now 112 00:04:33,480 --> 00:04:35,760 Speaker 2: trading above their IPO offer prices, and. 113 00:04:35,720 --> 00:04:38,640 Speaker 1: Since then private companies have become a little gun shy 114 00:04:38,760 --> 00:04:40,000 Speaker 1: to list on the public market. 115 00:04:40,080 --> 00:04:43,040 Speaker 2: So e Toro could be a sign of positive IPOs 116 00:04:43,080 --> 00:04:43,760 Speaker 2: to come. 117 00:04:43,839 --> 00:04:47,120 Speaker 1: For our third and final story. Airbnb now wants to 118 00:04:47,120 --> 00:04:49,760 Speaker 1: book your personal trainer, you spart a, and a celeb 119 00:04:49,800 --> 00:04:53,479 Speaker 1: experience because they want to expand outside of just holiday homes. 120 00:04:53,160 --> 00:04:56,160 Speaker 2: From spare beds to spark treatments. What is going on here? 121 00:04:56,560 --> 00:04:59,400 Speaker 1: Airbb was founded in two thousand and eight in San Francisco, 122 00:04:59,520 --> 00:05:01,360 Speaker 1: back when the my idea of sleeping in someone else's 123 00:05:01,360 --> 00:05:03,400 Speaker 1: place sounded a bit more like a horror film. 124 00:05:03,400 --> 00:05:05,480 Speaker 2: But since then, Jessie Boy it has hosted over two 125 00:05:05,760 --> 00:05:07,840 Speaker 2: billion guest arrivals in. 126 00:05:07,800 --> 00:05:10,320 Speaker 1: Runt of the mill apartments, but also some really wacky 127 00:05:10,360 --> 00:05:14,120 Speaker 1: properties like a yellow submarine, a windmill, a snow igloo. 128 00:05:14,240 --> 00:05:17,840 Speaker 2: But listing properties online is so last decade. 129 00:05:17,880 --> 00:05:20,880 Speaker 1: So now Airbbb's launched a redesigned app, so it's less 130 00:05:20,880 --> 00:05:23,800 Speaker 1: accommodation and more like the everything traveler. 131 00:05:23,839 --> 00:05:26,320 Speaker 2: You can now order a spa tramp, book a personal trainer, 132 00:05:26,400 --> 00:05:27,719 Speaker 2: hire a chef through the app. 133 00:05:27,960 --> 00:05:30,800 Speaker 1: Man. It ain't no coincidence that airbb is pushing deeper 134 00:05:30,880 --> 00:05:32,400 Speaker 1: into the experience of space. 135 00:05:32,120 --> 00:05:34,200 Speaker 2: Yep, that's because it warned a couple of weeks ago 136 00:05:34,240 --> 00:05:36,200 Speaker 2: of slowing bookings in the US. 137 00:05:36,080 --> 00:05:38,880 Speaker 1: Largely off the back of on again off again tariffs. 138 00:05:38,480 --> 00:05:40,679 Speaker 2: So Josey Boy. The idea is that these new offerings 139 00:05:40,680 --> 00:05:44,680 Speaker 2: will appeal to travelers who want more unique and personalized holidays. 140 00:05:44,240 --> 00:05:45,599 Speaker 1: And not just a place to sleep. 141 00:05:45,680 --> 00:05:49,000 Speaker 2: All part of Airbnb's plan to grow its share of wallet. 142 00:05:49,440 --> 00:05:51,680 Speaker 2: So what is the key learning ears Share of wallet 143 00:05:51,720 --> 00:05:54,200 Speaker 2: refers to how much of a consumer's total spending in 144 00:05:54,279 --> 00:05:56,479 Speaker 2: a category goes to one company. 145 00:05:56,520 --> 00:05:58,760 Speaker 1: When it comes to travel, your wallet gets sliced up 146 00:05:59,000 --> 00:05:59,599 Speaker 1: like a pizza. 147 00:06:00,040 --> 00:06:03,040 Speaker 2: It's accommodation, food, activities, transport, and. 148 00:06:03,040 --> 00:06:06,559 Speaker 1: Traditionally Airbnb only captured the accommodation. 149 00:06:06,000 --> 00:06:08,400 Speaker 2: Slides, and in twenty sixteen, when it launched the first 150 00:06:08,480 --> 00:06:11,080 Speaker 2: version of Experiences, it began to tap into this and 151 00:06:11,120 --> 00:06:12,760 Speaker 2: it kept growing and growing. 152 00:06:12,880 --> 00:06:15,040 Speaker 1: And so with the launch of the new Services feature 153 00:06:15,160 --> 00:06:17,919 Speaker 1: and growth of Airbnb Experiences, it's trying to win a 154 00:06:18,040 --> 00:06:19,680 Speaker 1: larger chunk of the holiday budget. 155 00:06:19,760 --> 00:06:22,919 Speaker 2: The idea is that customers already trust Airbnb for accommodation, 156 00:06:23,080 --> 00:06:25,440 Speaker 2: so they'll be willing to spend more on other interesting 157 00:06:25,480 --> 00:06:26,279 Speaker 2: services too. 158 00:06:26,160 --> 00:06:29,400 Speaker 1: And be man. Given Airbnb's net income fell nearly forty 159 00:06:29,400 --> 00:06:31,960 Speaker 1: two percent in the most recent quarter, it needs to 160 00:06:32,000 --> 00:06:33,640 Speaker 1: find some new growth channels, so. 161 00:06:33,640 --> 00:06:36,919 Speaker 2: It's hoping that services and experiences might just be that. 162 00:06:37,160 --> 00:06:39,000 Speaker 1: But Sam, if you're listening to the pod on your phone, 163 00:06:39,040 --> 00:06:41,080 Speaker 1: which you most likely are, make sure to jump into 164 00:06:41,080 --> 00:06:43,520 Speaker 1: your Flux app, turn your notifications on, and get ready 165 00:06:43,560 --> 00:06:46,680 Speaker 1: for that notification coming today to win fifty bucks could 166 00:06:46,680 --> 00:06:48,760 Speaker 1: be the greatest start of the weekend you've ever had. 167 00:06:48,880 --> 00:06:51,599 Speaker 1: It's all in our weekly game Quick Sticks, which drops today. 168 00:06:51,640 --> 00:06:53,960 Speaker 2: Thanks for listening and we'll see you on Monday.