Latest / What the Flux / Zip strikes BNPL success in the US | Gucci is launching smart glasses | Amazon $11.6 billion bonanza

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Zip strikes BNPL success in the US | Gucci is launching smart glasses | Amazon $11.6 billion bonanza · What the Flux

• 0:05
  Speaker 1: This is what the flax.
• 0:06
  Speaker 2: I'm Brett and I'm justin As Monday, the twentieth of April,
• 0:09
  Speaker 2: does it, Boy, get out the popcorn, because the bidding
• 0:12
  Speaker 2: is just about to begin. The NRAL has just kicked
• 0:14
  Speaker 2: off its auction for its broadcast rights and it is
• 0:17
  Speaker 2: expected to land at about four billion bucks for just
• 0:20
  Speaker 2: five years, and there are some whispers that some of
• 0:23
  Speaker 2: the games could even be snapped up by a streamer
• 0:26
  Speaker 2: like Netflix or Amazon Prime.
• 0:28
  Speaker 1: Very very juicy Flux App. It's the middle of the
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  Speaker 1: month and if you haven't checked the credit score this month,
• 0:32
  Speaker 1: it is the time to do it. Every month your
• 0:34
  Speaker 1: credit scord goes up, it goes down based on all
• 0:36
  Speaker 1: of your credit activity. And if you don't know what
• 0:38
  Speaker 1: the banks can see about you, the Flex app is
• 0:39
  Speaker 1: the place to see. Download the Flux app and check
• 0:41
  Speaker 1: out whether your credits gods changed this month.
• 0:43
  Speaker 2: Three huge stories today, Josie Boy, let's do it for
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  Speaker 2: our first. Zip Co has seen it share spike up
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  Speaker 2: to twenty four percent after announcing an upgrade to its
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  Speaker 2: earnings guidance thanks to the US.
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  Speaker 1: US consumers still spending Mouler in these tough times, man,
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  Speaker 1: so tell me more.
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  Speaker 2: So Zip is the buy now, Pay later company founded
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  Speaker 2: in twenty thirteen here in Australia.
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  Speaker 1: And one of the pioneers of the buy now pay
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  Speaker 1: lata space that let's consumers split purchases into multiple installments, and.
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  Speaker 2: One of the few still standing as well.
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  Speaker 1: It's true and after a few softer years, zip share
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  Speaker 1: price jumped twenty four percent at a stage after it
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  Speaker 1: upgraded it's earnings forecast for FY twenty six.
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  Speaker 2: Yeap It now expects at least two hundred and sixty
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  Speaker 2: million backs in cash earnings, which is higher than previous guidance.
• 1:24
  Speaker 1: And why the positive update the US of a my
• 1:27
  Speaker 1: Friend yep. Zip's transaction volumes are expected to grow more
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  Speaker 1: than forty percent in the US.
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  Speaker 2: So Ja Zuboi. After a tough few years for buine
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  Speaker 2: now pay lata companies, Zip is showing signs of a
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  Speaker 2: potential comeback.
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  Speaker 1: In a financially responsible way.
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  Speaker 2: Is that right? So? What's the key learning here?
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  Speaker 1: Growth is great, but in this day and age, investors
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  Speaker 1: really care about profitable growth.
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  Speaker 2: In the today. Say back in twenty twenty one, buy now,
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  Speaker 2: Pay later companies were all about scaling fast.
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  Speaker 1: Yeah, the goals to sign up as many customers and
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  Speaker 1: merchants as possible without worrying too much about profits.
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  Speaker 2: But that strategy came back to bite when interest rates
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  Speaker 2: started to increase.
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  Speaker 1: And the funding costs became a lot more expensive.
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  Speaker 2: I remember ZIP share price plummeted from a high of
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  Speaker 2: nearly eleven bucks per share to just about twenty eight cents.
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  Speaker 1: I do, but now Zip nose. Investors will only reward
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  Speaker 1: growth with a little sprinkle of profitability and a little
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  Speaker 1: sprinkle of managing credit risks. So that means growing transaction
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  Speaker 1: volumes with more customers on the platform. It means keeping
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  Speaker 1: bad debts under control, and.
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  Speaker 2: It means maintaining healthy margins.
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  Speaker 1: And right now Zip is doing all three, particularly in
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  Speaker 1: the US, and that is why investors are rewarding it.
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  Speaker 1: For our second story, Gucci is teaming up with Google
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  Speaker 1: to launch smart glasses as it fights to save its
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  Speaker 1: profits and make Gucci Gucci again.
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  Speaker 2: Gucci lost its Golden zing lately, jesuboy, So what is
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  Speaker 2: going on here?
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  Speaker 1: Okay? So Keuring is the global luxury giant behind bougie
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  Speaker 1: brands like Saint Laurent. But takeovin Eda, Balenciaga and of
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  Speaker 1: course Gucci.
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  Speaker 2: Now Kring actually started as a timber company in nineteen
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  Speaker 2: sixty two and listed on the Parastock Exchange in nineteen
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  Speaker 2: eighty eight for.
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  Speaker 1: Shifting from wood to handbags in the late ninety talk
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  Speaker 1: about a pivot.
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  Speaker 2: Kerring bought a forty two percent steak in Gucci in
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  Speaker 2: nineteen ninety nine, which is one of the hottest fashion
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  Speaker 2: labels at that time, but.
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  Speaker 1: Been man over the past two years. The way the
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  Speaker 1: people shop has changed, and it's made Gucci very last decade.
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  Speaker 2: In fact, Gucci sales dropped eight percent in the last quarter,
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  Speaker 2: and that's the eleventh quarter in a row that sales
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  Speaker 2: have dropped.
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  Speaker 1: Sounds like Herring's golden Child isn't so golden anymore.
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  Speaker 2: That's right, Jasi boy So to win back investors, Carrings
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  Speaker 2: launching smart glasses under the Gucci.
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  Speaker 1: Brand in partnership with Google, and next year.
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  Speaker 2: The Devil wears Prada and Google wears Gucci sort of,
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  Speaker 2: and this is pitting it against the RayBan meta smart glasses.
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  Speaker 1: It's all part of a plan to shield Gucci from
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  Speaker 1: a shift in younger fashion taste that's been hurting It's
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  Speaker 1: star brand.
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  Speaker 2: Big statement. So what's the key learning here?
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  Speaker 1: Gen Z has a major case of logo fatigue, and
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  Speaker 1: Gucci is one of the major victims.
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  Speaker 2: You see Jaysie boy status symple. Branding used to be
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  Speaker 2: a bit of a flex but these days gen Z's
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  Speaker 2: more keen on products that feel unique and sustainable. We're
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  Speaker 2: talking a fifty five billion US dollar global reseller economy,
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  Speaker 2: so companies who used to make big wins off fancy
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  Speaker 2: logos need to find other ways to feature proof their products.
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  Speaker 2: Enter bigcheche brands like Tommy Hill, Figure and Gavonci have
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  Speaker 2: done the same to try to stay cool with younger generations.
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  Speaker 1: Yep, they literally got their brands into the roadblocks game
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  Speaker 1: to appeal to gen Z.
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  Speaker 2: But the problem with this is something called brand dilution.
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  Speaker 1: A brand like Gucci realized so heavily on their recognizability
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  Speaker 1: that it might get drowned out in the noise when
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  Speaker 1: it's slapped next to a name like Google.
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  Speaker 2: Or get lost in the world of new tech gadgets.
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  Speaker 1: In fact, they meant Kerry shares actually fell by more
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  Speaker 1: than five percent right after the news of this collapse, so.
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  Speaker 2: It sounds like investors might not be getting Gucci's SmartWare vision.
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  Speaker 1: For our third and final story, Amazon is acquiring a
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  Speaker 1: satellite company called Global Star for eleven point six billion
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  Speaker 1: US dollars to push its space Internet ambitions.
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  Speaker 2: Bezos goes to space on Blue Origin once, and now
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  Speaker 2: Amazon must be in space as well. Tell me more.
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  Speaker 1: Okay, so Amazon obviously needs no introduction. The bookstore turned
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  Speaker 1: everything store and cloud server.
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  Speaker 2: The fifth largest public company in the US based on
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  Speaker 2: market cap. And now Amazon's just announced it's acquiring a
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  Speaker 2: company called Global Star for a casual eleven point six
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  Speaker 2: billion US dollars And that casual eleven point six bill
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  Speaker 2: is a one hundred and seventeen percent premium on global
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  Speaker 2: Stars share price.
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  Speaker 1: And who is this global Star you speak of?
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  Speaker 2: It's a satellite operator that actually currently powers Apple's emergency
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  Speaker 2: messaging feature on iPhones and Apple watches. And why there's
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  Speaker 2: on so Keaine they're trying to boost Amazon's satellite internet project,
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  Speaker 2: recently renamed leoh because right now Amazon's playing catch up
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  Speaker 2: to Elon Musk's Stari, which already has over ten million
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  Speaker 2: users and around ten thousand satellites in orbit.
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  Speaker 1: But b Man his where it gets interesting, because with
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  Speaker 1: this acquisition, Amazon is also planning to enter the direct
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  Speaker 1: to device market by twenty twenty eight.
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  Speaker 2: That means connecting your phone to satellites directly, no mobile
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  Speaker 2: towers needed.
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  Speaker 1: Interesting, So what is the key learning here?
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  Speaker 2: Some of the biggest opportunities are usually hiding in markets
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  Speaker 2: that don't fully exist just yet. Yeah, satellite to phone
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  Speaker 2: connectivity or directed device is still in it's very early days,
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  Speaker 2: but the goal is to completely change how we stay connected,
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  Speaker 2: think remote areas, flights, emergencies, even replacing traditional telco's long term.
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  Speaker 1: Yeah. So by acquiring infrastructure and customers like Apple and Capability,
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  Speaker 1: Amazon's trying to shortcut the years of growth that starlink
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  Speaker 1: has had.
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  Speaker 2: And every time new connectivity tech comes along, it disrupts
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  Speaker 2: the old players.
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  Speaker 1: We saw it with the NBN, which is the hot
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  Speaker 1: new player in the broadband market for four seconds.
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  Speaker 2: It costs the Australian government about fifty seven billion dollars
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  Speaker 2: to build. And then we saw five G disrupted almost immediately.
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  Speaker 1: And now satellites could be the next evolution to even
• 6:32
  Speaker 1: disrupt five G.
• 6:33
  Speaker 2: And the's on once a big bat slice blocks Aunt.
• 6:37
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• 6:38
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• 6:41
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• 6:43
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• 6:46
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• 6:47
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• 6:49
  Speaker 1: download the app check out your credit score.
• 6:50
  Speaker 2: Thanks for listening, and we'll see you on Wednesday.