1 00:00:05,080 --> 00:00:08,559 Speaker 1: This is what the Flux and I'm justin and it's Monday. 2 00:00:08,800 --> 00:00:09,920 Speaker 1: It's the Bay. 3 00:00:10,000 --> 00:00:13,800 Speaker 2: PwC, the global professional services firm, has unveiled its first 4 00:00:13,880 --> 00:00:16,680 Speaker 2: global brand update in over a decade. If you don't mind, 5 00:00:16,760 --> 00:00:18,640 Speaker 2: it did take eighteen months to land on the new 6 00:00:18,680 --> 00:00:22,800 Speaker 2: logo and branding after an extensive global survey end quote. 7 00:00:22,800 --> 00:00:25,280 Speaker 2: But this new logo uses exactly the same lettering as 8 00:00:25,280 --> 00:00:27,520 Speaker 2: the old one. Then the difference it switched out a 9 00:00:27,520 --> 00:00:32,360 Speaker 2: butterfly crest for two orange parallelograms. Tough word to say. 10 00:00:32,520 --> 00:00:35,160 Speaker 2: And now everyone's just plain old confused because this looks 11 00:00:35,200 --> 00:00:37,000 Speaker 2: like it could have been done in four minutes. 12 00:00:37,640 --> 00:00:40,400 Speaker 1: I believe they're calling it a momentum mark rather than 13 00:00:40,440 --> 00:00:42,839 Speaker 1: a logo as well. Be man, get it right, huge Potsdam. 14 00:00:42,960 --> 00:00:45,560 Speaker 1: We have done a very deep dive into the Flux 15 00:00:45,560 --> 00:00:50,240 Speaker 1: community across gen Z, Millennials, gen Y to understand different 16 00:00:50,320 --> 00:00:53,720 Speaker 1: money mindsets across different generations. We uncover it all in 17 00:00:53,760 --> 00:00:57,880 Speaker 1: the Flux app with our three part series on unpacking spending, 18 00:00:58,040 --> 00:01:00,800 Speaker 1: saving and investing mindsets. You want to learn more, make 19 00:01:00,840 --> 00:01:02,520 Speaker 1: sure to check it out in the Flux app. 20 00:01:02,600 --> 00:01:05,480 Speaker 2: Three critical stories today. Juzzy Boy, let's do it for 21 00:01:05,680 --> 00:01:09,200 Speaker 2: our first, at Lassian saw its market cap fall by 22 00:01:09,200 --> 00:01:12,400 Speaker 2: fifteen billion bucks late last week, despite seeing a boost 23 00:01:12,440 --> 00:01:13,240 Speaker 2: in revenue. 24 00:01:13,360 --> 00:01:15,880 Speaker 1: Something's really ticked off investors. Here be man, and it 25 00:01:16,000 --> 00:01:18,760 Speaker 1: is not another Jura ticket, So tell me all well. 26 00:01:18,760 --> 00:01:21,679 Speaker 2: At Lasian is the Ouzsi founded software company that builds 27 00:01:21,760 --> 00:01:23,720 Speaker 2: workplace digital tools. 28 00:01:23,360 --> 00:01:26,640 Speaker 1: All your household tech names like your jars, your confluences, 29 00:01:26,720 --> 00:01:27,480 Speaker 1: your trollos. 30 00:01:27,600 --> 00:01:30,119 Speaker 2: And late last week, at Lassian announced its third quarter 31 00:01:30,160 --> 00:01:32,880 Speaker 2: earnings and its revenue was up fourteen percent to one 32 00:01:32,880 --> 00:01:34,520 Speaker 2: point four billion US dollars. 33 00:01:34,680 --> 00:01:35,279 Speaker 1: That's good. 34 00:01:35,520 --> 00:01:38,199 Speaker 2: But then came the guidance for next quarter and its 35 00:01:38,240 --> 00:01:39,880 Speaker 2: seriously underwhelmed investors. 36 00:01:40,040 --> 00:01:40,480 Speaker 1: That's bad. 37 00:01:40,600 --> 00:01:43,280 Speaker 2: And then it announced its plans to make its AI 38 00:01:43,400 --> 00:01:47,000 Speaker 2: tool Rovo, a free feature. That's good for customers, but 39 00:01:47,040 --> 00:01:50,040 Speaker 2: it's bad for investors because this used to be twenty bucks. 40 00:01:49,760 --> 00:01:52,640 Speaker 1: A month, and at Lassian claims it by making Rovo free, 41 00:01:52,680 --> 00:01:55,480 Speaker 1: it will accelerate its customer migration to the cloud. 42 00:01:55,560 --> 00:01:58,280 Speaker 2: The idea is to lure more users onto the cloud 43 00:01:58,360 --> 00:01:59,880 Speaker 2: and then make bank later. 44 00:02:00,000 --> 00:02:03,040 Speaker 1: The problem is, b man investors wanted the bank now, 45 00:02:03,320 --> 00:02:06,320 Speaker 1: and at lassians shares dropped more than seventeen percent. So 46 00:02:06,480 --> 00:02:07,680 Speaker 1: what is the key learning here. 47 00:02:07,880 --> 00:02:11,560 Speaker 2: Markets trade on future expectations, not past results. 48 00:02:11,600 --> 00:02:13,800 Speaker 1: Despite the fact that it Lassian saw revenue up in 49 00:02:13,840 --> 00:02:18,000 Speaker 1: the previous quarter, next quarter's guidance was well below investor expectation. 50 00:02:18,280 --> 00:02:21,320 Speaker 2: That's because markets don't just reward strong results, they trade 51 00:02:21,320 --> 00:02:24,800 Speaker 2: on future vibes. But Joseiboy, Wall Street doesn't always have 52 00:02:24,880 --> 00:02:28,200 Speaker 2: patients for the long term plays, particularly in the current environment. 53 00:02:28,480 --> 00:02:30,840 Speaker 1: This has happened to many companies previously as well, who 54 00:02:30,919 --> 00:02:32,600 Speaker 1: disappointed investors with their guidance. 55 00:02:32,680 --> 00:02:35,560 Speaker 2: Yeah. Remember Snap's first quarter results in twenty twenty five 56 00:02:35,840 --> 00:02:38,800 Speaker 2: much better than expected. Revenue was up fourteen percent. 57 00:02:38,480 --> 00:02:41,600 Speaker 1: But share price fell fourteen percent because Snap couldn't provide 58 00:02:41,680 --> 00:02:42,920 Speaker 1: a guidance for the next quarter. 59 00:02:43,000 --> 00:02:46,280 Speaker 2: So jazieboy, when you're a public company, even strong quarterly 60 00:02:46,280 --> 00:02:51,200 Speaker 2: performances can be overshadowed by concerning forward guidances. 61 00:02:51,240 --> 00:02:54,640 Speaker 1: For our second story, McDonald's has served up another drop 62 00:02:54,680 --> 00:02:57,919 Speaker 1: in sales after low and middle income diners have been 63 00:02:58,000 --> 00:02:59,720 Speaker 1: squeezing every penny. 64 00:02:59,880 --> 00:03:02,960 Speaker 2: Even the minecraft happy meal could save them this day, 65 00:03:03,040 --> 00:03:04,359 Speaker 2: jussy boy, So tell me more. 66 00:03:04,400 --> 00:03:07,400 Speaker 1: Okay, Well, we'll know Mackide's as the world's largest fast 67 00:03:07,400 --> 00:03:10,919 Speaker 1: food chain with its delicious Nuggies, Mcflurries, and of course, 68 00:03:11,080 --> 00:03:12,840 Speaker 1: the regretful late night cheeseburger run. 69 00:03:12,919 --> 00:03:16,040 Speaker 2: Yep, they've been Flippenberger since nineteen forty and operating in 70 00:03:16,080 --> 00:03:17,280 Speaker 2: over one hundred countries. 71 00:03:17,320 --> 00:03:20,040 Speaker 1: But be man, Lately the golden archers have been looking 72 00:03:20,080 --> 00:03:21,680 Speaker 1: a little more tarnish. Yep. 73 00:03:21,720 --> 00:03:24,360 Speaker 2: Macis has reported a three point six percent drop in 74 00:03:24,480 --> 00:03:25,480 Speaker 2: same store sales. 75 00:03:25,639 --> 00:03:27,840 Speaker 1: This ain't just one off. This is the second quarter 76 00:03:27,880 --> 00:03:29,800 Speaker 1: in a row they've suffered a dip. 77 00:03:29,880 --> 00:03:32,240 Speaker 2: In fact, this was its worst sales dropped since the 78 00:03:32,280 --> 00:03:35,640 Speaker 2: twenty twenty lockdowns, when even Ronald McDonald himself was working 79 00:03:35,640 --> 00:03:36,280 Speaker 2: from home. 80 00:03:36,440 --> 00:03:38,800 Speaker 1: And the man in the last quarter. Macis blamed the 81 00:03:38,840 --> 00:03:41,080 Speaker 1: dip on lower income groups cutting. 82 00:03:40,760 --> 00:03:43,160 Speaker 2: Down, but the real kicker is that even middle income 83 00:03:43,200 --> 00:03:44,840 Speaker 2: consumers are cutting back as well. 84 00:03:44,920 --> 00:03:46,640 Speaker 1: And be man, this is a sign that there is 85 00:03:46,720 --> 00:03:48,520 Speaker 1: even more economic pressure. 86 00:03:48,680 --> 00:03:52,120 Speaker 2: Not even their new value menu or the Minecraft movie 87 00:03:52,120 --> 00:03:53,240 Speaker 2: promo could stop the. 88 00:03:53,240 --> 00:03:56,720 Speaker 1: Fall, and this once recession proof stock might be losing 89 00:03:56,760 --> 00:03:57,200 Speaker 1: its title. 90 00:03:57,320 --> 00:03:58,600 Speaker 2: So what is the key learning here? 91 00:03:58,680 --> 00:04:01,760 Speaker 1: In tough times, brands that are typically recession proof are 92 00:04:01,880 --> 00:04:03,040 Speaker 1: suddenly under pressure. 93 00:04:03,120 --> 00:04:06,960 Speaker 2: McDonald's has always been known as a pretty defensive stock. 94 00:04:07,080 --> 00:04:09,800 Speaker 1: Yeah, the idea is that when budgets tightened, people still 95 00:04:09,800 --> 00:04:11,760 Speaker 1: grab a cheap meal from Mackide's. 96 00:04:11,960 --> 00:04:14,920 Speaker 2: Other defensive stocks the companies in the utility space, or 97 00:04:14,960 --> 00:04:17,160 Speaker 2: the consumer staples industries. 98 00:04:16,800 --> 00:04:19,360 Speaker 1: Like Coca Cola, which is Warren Buffet's favorite. 99 00:04:19,040 --> 00:04:21,000 Speaker 2: Because people have got to eat and people have got 100 00:04:21,040 --> 00:04:21,920 Speaker 2: to use electricity. 101 00:04:21,960 --> 00:04:24,880 Speaker 1: But this quarter shows that even McDonald's isn't immune from 102 00:04:24,920 --> 00:04:26,120 Speaker 1: the cost of living pain. 103 00:04:26,240 --> 00:04:28,679 Speaker 2: So juz boy, it's a pretty big wake up call. 104 00:04:28,760 --> 00:04:32,800 Speaker 2: That's so called recession proof stocks aren't exactly a bulletproof 105 00:04:32,839 --> 00:04:33,200 Speaker 2: right now. 106 00:04:33,720 --> 00:04:36,960 Speaker 1: And when consumers starts skipping on those golden salty fries, 107 00:04:37,200 --> 00:04:39,880 Speaker 1: you know that discretionary spending is seriously under fire. 108 00:04:40,040 --> 00:04:43,360 Speaker 2: For our third and final story, Amazon has beaten its 109 00:04:43,440 --> 00:04:47,440 Speaker 2: earnings expectations, but tariffs and trade drama were the unwanted 110 00:04:47,480 --> 00:04:49,279 Speaker 2: guests crashing the investor update. 111 00:04:49,360 --> 00:04:52,080 Speaker 1: Trade drama is the plot twist. Amazon did not need banan, 112 00:04:52,240 --> 00:04:53,080 Speaker 1: so tell me more. 113 00:04:53,120 --> 00:04:55,920 Speaker 2: Well, we all know Amazon, the e commerce behemoth, started 114 00:04:55,960 --> 00:04:57,560 Speaker 2: in around nineteen ninety four. 115 00:04:57,480 --> 00:05:00,600 Speaker 1: Grew from books online to pretty much everything. 116 00:05:00,680 --> 00:05:04,279 Speaker 2: Yeah, we're talking cloud infrastructure, to kindle book readers, to 117 00:05:04,400 --> 00:05:06,920 Speaker 2: an AI helper in Alexa, and so much more. 118 00:05:07,000 --> 00:05:09,360 Speaker 1: Yeah, and be man late last week, investors were waiting 119 00:05:09,480 --> 00:05:11,600 Speaker 1: with baited breath to hear about how the tariffs had 120 00:05:11,640 --> 00:05:14,640 Speaker 1: impacted Amazon's last quarter, and the answer not much at all. 121 00:05:14,680 --> 00:05:17,320 Speaker 1: In fact, Amazon's ad business grew nineteen percent this quarter, 122 00:05:17,360 --> 00:05:19,520 Speaker 1: which made it one of the fastest growing arms of 123 00:05:19,560 --> 00:05:20,040 Speaker 1: the company. 124 00:05:20,080 --> 00:05:22,960 Speaker 2: Amazon reported quarterly revenue of more than one hundred and 125 00:05:23,000 --> 00:05:27,320 Speaker 2: fifty five billion US dollars, which did yes, beat investor expectations. 126 00:05:27,480 --> 00:05:28,760 Speaker 1: Then it's share price dropped. 127 00:05:28,920 --> 00:05:30,960 Speaker 2: Why you ask, tariffs and taxes. 128 00:05:31,080 --> 00:05:34,000 Speaker 1: Yeah, but Amazon is trying to keep its prices stable 129 00:05:34,040 --> 00:05:36,520 Speaker 1: for as long as possible by forward buying. 130 00:05:36,600 --> 00:05:38,080 Speaker 2: Interesting, what is the key learning here? 131 00:05:38,160 --> 00:05:41,159 Speaker 1: Forward buying is when companies purchased large volumes of stock 132 00:05:41,240 --> 00:05:41,880 Speaker 1: in advance. 133 00:05:42,120 --> 00:05:44,320 Speaker 2: It's a bit like panic buying, but for big companies. 134 00:05:44,520 --> 00:05:46,640 Speaker 1: Yeah, they do it to glock in current prices and 135 00:05:46,720 --> 00:05:49,640 Speaker 1: ensure there's enough supply at that price because Jazu boy, 136 00:05:49,760 --> 00:05:52,400 Speaker 1: we know right now there is a genuine risk of 137 00:05:52,560 --> 00:05:55,440 Speaker 1: one hundred and forty five percent cost increases for Amazon 138 00:05:55,640 --> 00:05:58,680 Speaker 1: thanks to tariffs and be man Typically, forward buying is 139 00:05:58,680 --> 00:06:02,560 Speaker 1: a tactic used by infantry managers to reduce volatility. 140 00:06:01,960 --> 00:06:04,000 Speaker 2: Maybe currency changes. 141 00:06:03,640 --> 00:06:05,480 Speaker 1: Or concerns around the supply of good, but. 142 00:06:05,440 --> 00:06:08,760 Speaker 2: In twenty twenty five, it's also a trade war survival strategy. 143 00:06:08,839 --> 00:06:12,120 Speaker 1: Get this, Approximately fifty percent of Amazon's products are likely 144 00:06:12,240 --> 00:06:15,599 Speaker 1: to be affected by these whopper tariffs according to UBS. 145 00:06:15,160 --> 00:06:18,640 Speaker 2: So Amazon is forward buying from tariff hit countries like 146 00:06:18,760 --> 00:06:20,720 Speaker 2: China so it can hedge it spets. 147 00:06:20,360 --> 00:06:22,600 Speaker 1: And this allows them to sell goods at pre tariff 148 00:06:22,640 --> 00:06:23,680 Speaker 1: prices for longer. 149 00:06:23,760 --> 00:06:26,760 Speaker 2: But it's a double edged sword because if Amazon stockpiles 150 00:06:26,800 --> 00:06:30,880 Speaker 2: too much stock, it can tie up cash and its warehouses. 151 00:06:30,279 --> 00:06:34,159 Speaker 1: Fluxlamm, gen Z, millennials and gen X. They all have 152 00:06:34,600 --> 00:06:37,680 Speaker 1: very different money mindsets, very different saving and spending habit 153 00:06:37,839 --> 00:06:40,320 Speaker 1: and of course investing mindsets as well, so we cover 154 00:06:40,360 --> 00:06:42,200 Speaker 1: it all in the Flux app with feedback from the 155 00:06:42,240 --> 00:06:44,440 Speaker 1: whole Flux community. Do you want to learn more about 156 00:06:44,480 --> 00:06:47,000 Speaker 1: the different mindsets of all the different generations and make 157 00:06:47,040 --> 00:06:47,880 Speaker 1: sure to check it out. 158 00:06:47,960 --> 00:06:52,680 Speaker 2: Thanks for listening and we'll see you on Wednesday.