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Speaker 1: This is what the flucks.

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Speaker 2: I'm justin and I'm harsh deep and it's Friday, the

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Speaker 2: twenty fourth of May.

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Speaker 1: A g When BHP first tried to acquire Anglo American

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Speaker 1: for sixty billion dollars, it is clearly a mega low

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Speaker 1: ball opper. Oh yeah, because now they've made a third

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Speaker 1: bid of seventy three point nine billion bucks and Anglo

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Speaker 1: American has still rejected the opper. Ouch, I got a fee.

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Speaker 1: BHP may just come back for one more time. Get

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Speaker 1: it still done?

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Speaker 2: I guess we'll find out. As part of the federal budget,

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Speaker 2: every household will get a what discount on the energy bills?

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Speaker 1: Good question?

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Speaker 2: If you knew it was three hundred dollars, then you

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Speaker 2: would have been in a chance to win our prize

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Speaker 2: as part of our weekly game Twisteps. And it's on

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Speaker 2: again today, so flax fam make sure to download the

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Speaker 2: Flux app and have your notifications turned on because it

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Speaker 2: is dropping today at a random time.

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Speaker 1: Three energetic stories today, HD, let's get into it for

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Speaker 1: our first zero. The accounting software platform has seen its

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Speaker 1: revenue spike more than twenty twenty two percent, but AI

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Speaker 1: is not going to revolutionize this business.

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Speaker 2: What do you mean, I thought AI was a problem

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Speaker 2: and solution to all corporate world problems these days, tell

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Speaker 2: me more so.

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Speaker 1: Zero is the new Zealand based accounting software that launched

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Speaker 1: back in two thousand and six.

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Speaker 2: It took on the likes of myob and Quicken in

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Speaker 2: the accounting space by building a software that lived in

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Speaker 2: the cloud.

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Speaker 1: Sounds pretty basic these days, but back then the cloud

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Speaker 1: was just when you flew a plane and nothing to

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Speaker 1: do with tech.

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Speaker 2: But since listing on the AX in twenty twelve, Zero

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Speaker 2: has grown its market value by two thousand, eight hundred

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Speaker 2: and thirty one percent.

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Speaker 1: At now, HD zero is continuing on its growth path

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Speaker 1: after announcing its revenue jump twenty two percent for the

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Speaker 1: year to March roll.

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Speaker 2: On top of that, its number of monthly churned subscribers

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Speaker 2: was less than one percent. But then came the interesting part.

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Speaker 2: Go on, Well, the CEO was asked about the potential

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Speaker 2: for generative AI in the Zero business and she said

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Speaker 2: she didn't want to use the word AI just for the.

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Speaker 1: Sake of it, and AI can't yet do your taxes.

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Speaker 2: But it goes against the grain of many other CEOs

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Speaker 2: who were dropping generative AI just to ride.

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Speaker 1: The HIVE, So what is the key learning here?

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Speaker 2: When it comes to new technologies, sometimes it's hard to

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Speaker 2: distinguish between visionary leaders and visionary sales pitches HG.

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Speaker 1: Many CEOs right now are aligning with the next Big

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Speaker 1: Thing AI.

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Speaker 2: And that's even if the technology isn't yet a core

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Speaker 2: part of the business.

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Speaker 1: Get this, AHD. In the three months between December and

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Speaker 1: March this year, one hundred and seventy nine of the

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Speaker 1: top five hundred public companies in the US mentioned AI

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Speaker 1: as part of their earnings update.

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Speaker 2: And the average number of times AI was mentioned on

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Speaker 2: their earnings call was thirteen and HG.

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Speaker 1: Often companies can see a significant short term increase in

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Speaker 1: their market value and investor interest just by mentioning this

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Speaker 1: next big thing AI. YEP.

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Speaker 2: The S and P five hundred companies that mention AI

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Speaker 2: on their earnings call have seen a better average stock

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Speaker 2: price performance over the past twelve month compared.

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Speaker 1: To those who didn't mention AI on the earnings calls.

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Speaker 2: But if the promise of AI isn't implemented, it can

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Speaker 2: lead to distrust amongst investors.

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Speaker 1: For our second story, web Jet, the online travel bookings company,

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Speaker 1: has announced a record net profit after tax and now

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Speaker 1: it's thinking about breaking up with itself.

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Speaker 2: Wow. Talk about a comeback post COVID. Nobody knews that

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Speaker 2: even survived, tell me.

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Speaker 1: More so she. Webjet is the Australian online travel agency

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Speaker 1: that started back in nineteen ninety eight.

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Speaker 2: It's been known to help consumers compare and book flights, hotels,

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Speaker 2: and car hire, but.

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Speaker 1: During the COVID years, Webjet's consumer business got whacked.

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Speaker 2: It was forced to raise more than seven hundred and

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Speaker 2: fifty million dollars in shares and convertible notes after April

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Speaker 2: twenty twenty because travel went to a complete holt.

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Speaker 1: But at the same time it began building up the

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Speaker 1: B to B side of its business called webbeds.

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Speaker 2: This is where it acts as a room inventory conduit

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Speaker 2: between hotels and customers like tool operators and.

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Speaker 1: As she now. Webjets announced a net profit of over

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Speaker 1: one hundred and twenty eight million bucks wow twelve months

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Speaker 1: to March this year.

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Speaker 2: That's almost double its net profit from the year before.

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Speaker 1: And its consumer business is kind of now the forgotten

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Speaker 1: child because it's B to B platform earned three times

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Speaker 1: that of the B two C unit, and.

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Speaker 2: Now webjet is talking about splitting its business into two

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Speaker 2: separate ASX listed companies.

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Speaker 1: Tell me, I she what is the key learning here?

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Speaker 2: Sometimes the sum of a company's parts can be greater

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Speaker 2: than the.

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Speaker 1: Whole, especially when those parts operate under fundamentally different business models.

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Speaker 2: You see, while both of Webjet's businesses are in the

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Speaker 2: travel industry, it's B to B business. Webbeds serves a global.

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Speaker 1: Market and that's got a huge growth trajectory and a

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Speaker 1: much larger addressable market.

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Speaker 2: As opposed to webjet and trip Ninja, which largely serve

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Speaker 2: the Australian consumer market.

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Speaker 1: And as when these two businesses are combined under the

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Speaker 1: one ASX listed umbrella, it can dilute their overall valuation.

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Speaker 2: That's why splitting them into two distinct entities could unlock

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Speaker 2: significant value for both businesses, but particularly Webbeds.

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Speaker 1: For our third and final story, in Videos released its

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Speaker 1: first quarter results with an astronomical jump in profit of

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Speaker 1: a six hundred.

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Speaker 2: That just doesn't sound real, tell us what's going on here?

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Speaker 1: Just okay? Well? In Video has been one of the

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Speaker 1: most t talked about tech companies in the last year

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Speaker 1: thanks to chips. Computer chips.

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Speaker 2: That is, in Video started with manufacturing game chips, but

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Speaker 2: ten years ago decided to dabble in AI chips.

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Speaker 1: And boy boy did that bet payoff, because since then

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Speaker 1: it's become the biggest chip maker worldwide and now does.

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Speaker 2: In Videos just announced its first quarter results which smashed expectations.

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Speaker 1: We're talking to jumping profit from just over two billion

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Speaker 1: US dollars in the same period last year to almost

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Speaker 1: fifteen billion.

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Speaker 2: US dollars just to casual six hundred and twenty eight

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Speaker 2: percent increased and no big deal.

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Speaker 1: But with the AI boom still booming, in Vidia has

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Speaker 1: been cashing in on the enormous demand for AI data

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Speaker 1: centers and therefore it's AI chips.

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Speaker 2: In fact, the major tech giants Amazon, Google, Meta, and

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Speaker 2: Microsoft have all been spending big on data centers today

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Speaker 2: and plan to spend more in the near future.

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Speaker 1: And while in Video's manufacturing is still catching up to

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Speaker 1: the chip demand, it's got a toe the line between

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Speaker 1: matching demand and overshooting.

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Speaker 2: It the old Bullwep effect.

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Speaker 1: Yep, So what is the key learning here?

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Speaker 2: The Bullwep effect is when the supply of a PRODUCTDUT

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Speaker 2: is so short that customers on the wait list over

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Speaker 2: order the products.

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Speaker 1: And right now many tech companies are waiting for big

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Speaker 1: shipments of Nvidia's AI chips.

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Speaker 2: But once AI chips supply and demand a more imbalance,

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Speaker 2: buyers may get more chips than they.

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Speaker 1: Need and then they pull back just as new AI

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Speaker 1: chip makers are producing even more products.

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Speaker 2: So AI chip makers need to strike the right balance

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Speaker 2: between capitalizing on high demand and also avoid excess inventory.

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Speaker 1: Kind of reminds me of what's happening in the electric

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Speaker 1: vehicles industry, Foxman. If you want to win fifty bucks

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Speaker 1: to kick off your weekend, make sure you download the

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Speaker 1: Flux app and play our weekly game, quick Sticks. It'll

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Speaker 1: be the best start of the weekend you could possibly have.

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Speaker 2: Thanks for listening and we'll see you on Monday.