1 00:00:05,200 --> 00:00:06,600 Speaker 1: This is what the flucks. 2 00:00:06,680 --> 00:00:09,000 Speaker 2: I'm Brett and I'm justin and it's Monday, the twenty 3 00:00:09,000 --> 00:00:09,719 Speaker 2: third of February. 4 00:00:09,760 --> 00:00:12,080 Speaker 1: Get this one, Juzzy boy. Since the rollout of CHETCHWT 5 00:00:12,280 --> 00:00:15,280 Speaker 1: and other AI tools, employees who feel hard done by 6 00:00:15,480 --> 00:00:19,880 Speaker 1: have been representing themselves with their trustee AI lawyers writing 7 00:00:19,880 --> 00:00:22,320 Speaker 1: their legal docs. In fact, there has been a seventy 8 00:00:22,360 --> 00:00:26,000 Speaker 1: percent jump in workplace claim huge So the Fair Work 9 00:00:26,040 --> 00:00:28,760 Speaker 1: Commission is up to its eyeballs and cases and obviously 10 00:00:28,920 --> 00:00:30,280 Speaker 1: can't deal with the demand. 11 00:00:29,960 --> 00:00:32,440 Speaker 2: Flux am Every single month you get stung by Netflix 12 00:00:32,440 --> 00:00:35,360 Speaker 2: and Spotify and your gym and your insurance, and sometimes 13 00:00:35,400 --> 00:00:37,720 Speaker 2: it's hard to know where all these subscriptions are coming from. Well, 14 00:00:37,760 --> 00:00:39,640 Speaker 2: in the Flux app, we have the Subscription track Up 15 00:00:39,680 --> 00:00:41,600 Speaker 2: where you can connect your bank account in thirty seconds 16 00:00:41,640 --> 00:00:43,680 Speaker 2: and see all of your subscriptions in the one place. 17 00:00:43,800 --> 00:00:45,800 Speaker 2: Helps you see what's coming out, what you're spending, and 18 00:00:45,800 --> 00:00:47,199 Speaker 2: how to cancel them. So if you want to save 19 00:00:47,280 --> 00:00:49,159 Speaker 2: some money on your subscriptions this month, make sure to 20 00:00:49,159 --> 00:00:51,479 Speaker 2: download the Flux app and check out the Subscription track Up. 21 00:00:51,479 --> 00:00:54,160 Speaker 1: Three enormous stories today, Judi boy, Let's do it for 22 00:00:54,320 --> 00:00:57,760 Speaker 1: our first Ozsie Health tech startup Eucalyptus has been snapped 23 00:00:57,800 --> 00:01:00,760 Speaker 1: up for one point six billion dollars by It's US 24 00:01:00,800 --> 00:01:03,520 Speaker 1: equivalent in one of the biggest health tech exits for 25 00:01:03,560 --> 00:01:04,319 Speaker 1: a while. 26 00:01:04,160 --> 00:01:07,160 Speaker 2: Jeez had some regulatory trouble and Bang gets the big exit. 27 00:01:07,240 --> 00:01:09,120 Speaker 1: So tell me what's going on here. So Eucalyptus was 28 00:01:09,120 --> 00:01:11,760 Speaker 1: founded seven years ago by some of the early employees 29 00:01:11,800 --> 00:01:12,880 Speaker 1: of Koala Mattris. 30 00:01:12,920 --> 00:01:15,399 Speaker 2: The goal was to build Eucalyptus into a house of 31 00:01:15,520 --> 00:01:16,680 Speaker 2: digital health brands. 32 00:01:16,760 --> 00:01:20,440 Speaker 1: We're talking Pilot for men's health like hair loss and ed. 33 00:01:20,760 --> 00:01:23,600 Speaker 2: We'd be talking kin for women's health like fertility, pregnancy 34 00:01:23,680 --> 00:01:24,800 Speaker 2: and postpartum. 35 00:01:24,319 --> 00:01:26,440 Speaker 1: And also skincare brand software. 36 00:01:26,480 --> 00:01:29,520 Speaker 2: And don't forget Junipart, which specializes in weight loss medication 37 00:01:29,760 --> 00:01:32,080 Speaker 2: like the Big o, Zebik and Juzboy. 38 00:01:32,160 --> 00:01:35,080 Speaker 1: Eucalyptus has been on the venture capital treadmill since it started, 39 00:01:35,200 --> 00:01:37,959 Speaker 1: first raise eight million Series eight, then thirty million Series B, 40 00:01:38,160 --> 00:01:40,480 Speaker 1: sixty million Series B and at a five hundred and 41 00:01:40,520 --> 00:01:43,280 Speaker 1: sixty million dollar valuation by the BUYE and B Man. 42 00:01:43,319 --> 00:01:45,880 Speaker 2: Eucalyptus had plans to raise at evaluation of ever one 43 00:01:45,920 --> 00:01:47,920 Speaker 2: point three billion dollars later this year, but. 44 00:01:47,920 --> 00:01:50,240 Speaker 1: Before that raise, the US health tech giant Hymns and 45 00:01:50,280 --> 00:01:52,280 Speaker 1: Hers has swooped Eucalyptus. 46 00:01:52,280 --> 00:01:55,200 Speaker 2: Announced that Hymns and Hers Health will acquire Eucalyptus in 47 00:01:55,240 --> 00:01:57,600 Speaker 2: an all cash deal worth more than one point six 48 00:01:57,720 --> 00:01:58,800 Speaker 2: billion dollars, with. 49 00:01:58,800 --> 00:02:01,880 Speaker 1: The plan to turn Yuke into its international division and 50 00:02:01,920 --> 00:02:02,240 Speaker 1: b man. 51 00:02:02,320 --> 00:02:05,080 Speaker 2: Eucalyptus has really ridden the wave of demand for weight 52 00:02:05,120 --> 00:02:06,200 Speaker 2: loss drugs like ozempit. 53 00:02:06,280 --> 00:02:09,200 Speaker 1: Yep, It's positioned itself as a discrete healthcare service which 54 00:02:09,240 --> 00:02:11,440 Speaker 1: has clearly worked to treat for them. 55 00:02:11,480 --> 00:02:12,840 Speaker 2: So what is the key leading here? 56 00:02:12,919 --> 00:02:16,280 Speaker 1: In highly regulated industries, expansion is rarely as simple as 57 00:02:16,360 --> 00:02:19,240 Speaker 1: translating your website and flicking on the switch. Especially in 58 00:02:19,240 --> 00:02:22,880 Speaker 1: industries like healthcare, financial services, and energy, there are many 59 00:02:23,040 --> 00:02:25,519 Speaker 1: layers of regulation. Throw on top of that, each country 60 00:02:25,520 --> 00:02:28,320 Speaker 1: has its own regulators, its own approval processes, and its 61 00:02:28,320 --> 00:02:29,280 Speaker 1: own quirks. 62 00:02:29,000 --> 00:02:30,760 Speaker 2: So it can take years to navigate a new country. 63 00:02:30,800 --> 00:02:33,799 Speaker 2: So a roll up strategy like this becomes especially attractive 64 00:02:33,800 --> 00:02:34,320 Speaker 2: and US boy. 65 00:02:34,360 --> 00:02:37,360 Speaker 1: Although it aims health tech, Ramsey Healthcare did something similar 66 00:02:37,400 --> 00:02:39,680 Speaker 1: back in twenty eighteen when it wanted to expand its 67 00:02:39,720 --> 00:02:40,480 Speaker 1: presence in Europe. 68 00:02:40,520 --> 00:02:43,000 Speaker 2: YEP, if I'm not mistaken, it acquired KPO for one 69 00:02:43,000 --> 00:02:44,200 Speaker 2: point three billion dollars. 70 00:02:44,320 --> 00:02:46,200 Speaker 1: The goal was to enter deeper into Europe with a 71 00:02:46,200 --> 00:02:49,760 Speaker 1: business already embedded within the healthcare systems. Then and clearly, 72 00:02:49,840 --> 00:02:52,800 Speaker 1: Hymns and Hers has international ambitions, so you gives it 73 00:02:52,880 --> 00:02:55,480 Speaker 1: a big head start. And while both companies have faced 74 00:02:55,480 --> 00:02:58,800 Speaker 1: a lot of regulatory scrutiny recently, it clearly hasn't stopped 75 00:02:58,880 --> 00:03:02,440 Speaker 1: Hymns and herspping up eucalyptus. For our second. 76 00:03:02,080 --> 00:03:05,360 Speaker 2: Story, Gridsmithie Gomes shares have fallen ten percent after it 77 00:03:05,440 --> 00:03:08,639 Speaker 2: warned investors to be patient with its US losses. 78 00:03:08,720 --> 00:03:11,120 Speaker 1: All right, past the britobolo jazzy boy. It's gluten free 79 00:03:11,120 --> 00:03:13,600 Speaker 1: and I want to slice what is going on here? 80 00:03:13,680 --> 00:03:16,280 Speaker 2: Okay? So Grizvidio Gomez was founded in Australia twenty years 81 00:03:16,280 --> 00:03:18,280 Speaker 2: ago and became one of the most hyped IPOs on 82 00:03:18,320 --> 00:03:20,040 Speaker 2: the ASX in twenty twenty four. 83 00:03:19,880 --> 00:03:22,040 Speaker 1: Because it pitched to not only grow in Australia but 84 00:03:22,080 --> 00:03:25,240 Speaker 1: also the US, which is a big, big Mexican food market. 85 00:03:25,240 --> 00:03:29,160 Speaker 1: All right, give you the numbers, ban soyg's network sales 86 00:03:29,160 --> 00:03:32,280 Speaker 1: increased eighteen percent to over six hundred and eighty million 87 00:03:32,320 --> 00:03:34,560 Speaker 1: back that was slightly below the nineteen percent growth that 88 00:03:34,600 --> 00:03:36,640 Speaker 1: the market expected, but most of the concern was on 89 00:03:36,680 --> 00:03:39,160 Speaker 1: its US business, where it wrapped up eight mili in 90 00:03:39,240 --> 00:03:40,520 Speaker 1: losses for the first half. 91 00:03:40,320 --> 00:03:43,000 Speaker 2: And be man In a responsible but kind of ominous sign, 92 00:03:43,440 --> 00:03:47,160 Speaker 2: gg's management has capped its US expansion at just fifteen 93 00:03:47,200 --> 00:03:47,960 Speaker 2: stores for now. 94 00:03:48,040 --> 00:03:50,680 Speaker 1: Yeah, they say they want proof that the model works 95 00:03:50,720 --> 00:03:51,800 Speaker 1: before going bigger. 96 00:03:51,560 --> 00:03:53,520 Speaker 2: There and now it shares a trading at less than 97 00:03:53,520 --> 00:03:55,760 Speaker 2: its IPO price and less than half of its peak 98 00:03:55,800 --> 00:03:57,960 Speaker 2: price from last year. And while there were still big 99 00:03:57,960 --> 00:04:00,480 Speaker 2: believers in the GYG story, it's one of the most 100 00:04:00,520 --> 00:04:03,400 Speaker 2: shorted companies on the ASX. So what is the key 101 00:04:03,480 --> 00:04:03,920 Speaker 2: learning here? 102 00:04:04,000 --> 00:04:07,000 Speaker 1: Short selling is effectively when investors bet that a company's 103 00:04:07,000 --> 00:04:08,960 Speaker 1: share price will fall in the future. 104 00:04:09,000 --> 00:04:11,720 Speaker 2: Short sellers borough shares. They sell them at today's price 105 00:04:11,800 --> 00:04:13,840 Speaker 2: and aim to buy them back later at a lower 106 00:04:13,880 --> 00:04:15,360 Speaker 2: price and pocket the difference. 107 00:04:15,560 --> 00:04:19,440 Speaker 1: High short interest often signals a lot of skepticism. 108 00:04:19,680 --> 00:04:22,560 Speaker 2: In fact, the man Gig is the fourth most shorted 109 00:04:22,560 --> 00:04:24,240 Speaker 2: company on the whole ASX. 110 00:04:24,480 --> 00:04:26,799 Speaker 1: Yeah, about thirteen and a half percent of its shares 111 00:04:26,800 --> 00:04:27,600 Speaker 1: have been shorted. 112 00:04:27,680 --> 00:04:30,000 Speaker 2: That means thirty and a half percent of god Minigomez's 113 00:04:30,080 --> 00:04:32,680 Speaker 2: total shares on issue have been borrowed and sold by 114 00:04:32,680 --> 00:04:34,719 Speaker 2: investors who are betting that the price will fall. 115 00:04:34,760 --> 00:04:36,599 Speaker 1: So it's fair to say a decent slice of the 116 00:04:36,600 --> 00:04:39,360 Speaker 1: market thinks the current valuation is too high and that 117 00:04:39,400 --> 00:04:41,920 Speaker 1: earnings in the future may disappoint. 118 00:04:41,400 --> 00:04:43,280 Speaker 2: And b man, a decent slice of the market have 119 00:04:43,360 --> 00:04:46,159 Speaker 2: been right to doubt the US burrito dreams so far. 120 00:04:46,120 --> 00:04:48,440 Speaker 1: But Guig needs to prove that it can turn this 121 00:04:48,520 --> 00:04:49,520 Speaker 1: burrito around. 122 00:04:49,880 --> 00:04:52,800 Speaker 2: For our third and final story, eBay has dropped one 123 00:04:52,839 --> 00:04:55,960 Speaker 2: point two billion US dollars to acquire the sustainable fashion 124 00:04:55,960 --> 00:04:59,280 Speaker 2: company Deeper as a way into gen Z hearts and wallets. 125 00:04:59,400 --> 00:05:01,839 Speaker 1: Eba wants to the cool kit again. What is the 126 00:05:01,839 --> 00:05:02,320 Speaker 1: story here? 127 00:05:02,360 --> 00:05:04,479 Speaker 2: Okay so Eba was founded back in nineteen ninety five 128 00:05:04,560 --> 00:05:07,640 Speaker 2: and was the og online marketplace for buying and selling 129 00:05:07,680 --> 00:05:08,720 Speaker 2: secondhand goods. 130 00:05:08,520 --> 00:05:12,800 Speaker 1: Think vintage fashion, electronics, home goods, where sneakers, and obviously 131 00:05:12,920 --> 00:05:13,400 Speaker 1: a lot more. 132 00:05:13,480 --> 00:05:16,000 Speaker 2: Ye back in the day, people made entire businesses out 133 00:05:16,000 --> 00:05:18,520 Speaker 2: of flipping secondhand stuff on eBay. Yep, and eBay still 134 00:05:18,520 --> 00:05:21,159 Speaker 2: has over one hundred and thirty million active users, but 135 00:05:21,480 --> 00:05:23,840 Speaker 2: their growth is definitely not what it used to be. No, no, no, 136 00:05:23,920 --> 00:05:26,320 Speaker 2: These days gen Z are turning to new platforms like 137 00:05:26,400 --> 00:05:28,480 Speaker 2: deeper to buy and sell their closing instead. 138 00:05:28,560 --> 00:05:31,320 Speaker 1: Deepop only launched in twenty eleven, but its popularity has 139 00:05:31,400 --> 00:05:34,680 Speaker 1: quickly grown through social media and a very loyal gen 140 00:05:34,760 --> 00:05:35,599 Speaker 1: Z customer base. 141 00:05:35,640 --> 00:05:38,039 Speaker 2: Compare this to eBay's core customers, who are now aged 142 00:05:38,040 --> 00:05:40,000 Speaker 2: between thirty five and sixty. 143 00:05:39,640 --> 00:05:41,920 Speaker 1: Four, and it's no surprise that eBay has made a 144 00:05:41,960 --> 00:05:44,880 Speaker 1: move to purchase depop for one point two billion US 145 00:05:44,960 --> 00:05:46,120 Speaker 1: dollars and b Man. 146 00:05:46,160 --> 00:05:48,640 Speaker 2: EBA's investors are like this. They showed their approval with 147 00:05:48,680 --> 00:05:50,839 Speaker 2: a seven percent jump in eBay share price. 148 00:05:51,000 --> 00:05:54,039 Speaker 1: Now eBay's on the fast track to win gen Z 149 00:05:54,120 --> 00:05:55,200 Speaker 1: hearts and wallets. 150 00:05:55,240 --> 00:05:56,640 Speaker 2: So what is the key learning here? 151 00:05:56,720 --> 00:06:00,000 Speaker 1: When big established brands hit a growth wall, they offered 152 00:06:00,040 --> 00:06:03,400 Speaker 1: whoose to buy growth in inorganic ways? Yeah, the global 153 00:06:03,440 --> 00:06:06,080 Speaker 1: sustainable fashion market is projected to more than double in 154 00:06:06,160 --> 00:06:08,320 Speaker 1: size over the next decade. The deep hop is more 155 00:06:08,360 --> 00:06:10,640 Speaker 1: than just a marketplace for clothes. It's actually built a 156 00:06:10,680 --> 00:06:13,560 Speaker 1: strong community of young sustainability conscious shoppers. 157 00:06:13,600 --> 00:06:15,800 Speaker 2: Instead of trying to replicate that cultural connection with a 158 00:06:15,920 --> 00:06:18,040 Speaker 2: new product, Eba just outright bought deep Op. 159 00:06:18,120 --> 00:06:21,200 Speaker 1: Yeah, this business approach isn't new. Back in twenty twelve, 160 00:06:21,320 --> 00:06:24,960 Speaker 1: Facebook now known as Mata, acquired Instagram for very similar reasons. 161 00:06:25,000 --> 00:06:27,200 Speaker 2: Yep, heaps of young people were jumping ship to Instagram, 162 00:06:27,400 --> 00:06:29,680 Speaker 2: so instead of competing, Facebook just brought them in the 163 00:06:29,680 --> 00:06:32,719 Speaker 2: house instead. So for user based platforms like eBay, young 164 00:06:32,760 --> 00:06:35,040 Speaker 2: customers aren't just the nice to have no no no, 165 00:06:35,279 --> 00:06:37,560 Speaker 2: they are the growth engine that will keep the marketplace 166 00:06:37,600 --> 00:06:40,200 Speaker 2: relevant for the next decade. Fox Am. If you notice 167 00:06:40,200 --> 00:06:42,400 Speaker 2: direct debitt's coming out of your bank account every single 168 00:06:42,440 --> 00:06:44,120 Speaker 2: month and you don't know where they're going all y, 169 00:06:44,279 --> 00:06:46,600 Speaker 2: the Flux Subscription Tracker is your place to find them. 170 00:06:46,640 --> 00:06:49,159 Speaker 2: In under thirty seconds, we can identify all your subscriptions 171 00:06:49,160 --> 00:06:51,080 Speaker 2: in the one place so you can cancel. Make sure 172 00:06:51,080 --> 00:06:53,599 Speaker 2: to download the Flux app and check out the Subscription Tracker. 173 00:06:53,680 --> 00:06:55,960 Speaker 1: Thanks for listening and we'll see you on Wednesday.