Latest / What the Flux / Atlassian tanks on freebie talk | McDonald's Golden Arches lose their shine | Amazon has Prime profits but tariff tantrums

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Atlassian tanks on freebie talk | McDonald's Golden Arches lose their shine | Amazon has Prime profits but tariff tantrums · What the Flux

• 0:05
  Speaker 1: This is what the Flux and I'm justin and it's Monday.
• 0:08
  Speaker 1: It's the Bay.
• 0:10
  Speaker 2: PwC, the global professional services firm, has unveiled its first
• 0:13
  Speaker 2: global brand update in over a decade. If you don't mind,
• 0:16
  Speaker 2: it did take eighteen months to land on the new
• 0:18
  Speaker 2: logo and branding after an extensive global survey end quote.
• 0:22
  Speaker 2: But this new logo uses exactly the same lettering as
• 0:25
  Speaker 2: the old one. Then the difference it switched out a
• 0:27
  Speaker 2: butterfly crest for two orange parallelograms. Tough word to say.
• 0:32
  Speaker 2: And now everyone's just plain old confused because this looks
• 0:35
  Speaker 2: like it could have been done in four minutes.
• 0:37
  Speaker 1: I believe they're calling it a momentum mark rather than
• 0:40
  Speaker 1: a logo as well. Be man, get it right, huge Potsdam.
• 0:42
  Speaker 1: We have done a very deep dive into the Flux
• 0:45
  Speaker 1: community across gen Z, Millennials, gen Y to understand different
• 0:50
  Speaker 1: money mindsets across different generations. We uncover it all in
• 0:53
  Speaker 1: the Flux app with our three part series on unpacking spending,
• 0:58
  Speaker 1: saving and investing mindsets. You want to learn more, make
• 1:00
  Speaker 1: sure to check it out in the Flux app.
• 1:02
  Speaker 2: Three critical stories today. Juzzy Boy, let's do it for
• 1:05
  Speaker 2: our first, at Lassian saw its market cap fall by
• 1:09
  Speaker 2: fifteen billion bucks late last week, despite seeing a boost
• 1:12
  Speaker 2: in revenue.
• 1:13
  Speaker 1: Something's really ticked off investors. Here be man, and it
• 1:16
  Speaker 1: is not another Jura ticket, So tell me all well.
• 1:18
  Speaker 2: At Lasian is the Ouzsi founded software company that builds
• 1:21
  Speaker 2: workplace digital tools.
• 1:23
  Speaker 1: All your household tech names like your jars, your confluences,
• 1:26
  Speaker 1: your trollos.
• 1:27
  Speaker 2: And late last week, at Lassian announced its third quarter
• 1:30
  Speaker 2: earnings and its revenue was up fourteen percent to one
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  Speaker 2: point four billion US dollars.
• 1:34
  Speaker 1: That's good.
• 1:35
  Speaker 2: But then came the guidance for next quarter and its
• 1:38
  Speaker 2: seriously underwhelmed investors.
• 1:40
  Speaker 1: That's bad.
• 1:40
  Speaker 2: And then it announced its plans to make its AI
• 1:43
  Speaker 2: tool Rovo, a free feature. That's good for customers, but
• 1:47
  Speaker 2: it's bad for investors because this used to be twenty bucks.
• 1:49
  Speaker 1: A month, and at Lassian claims it by making Rovo free,
• 1:52
  Speaker 1: it will accelerate its customer migration to the cloud.
• 1:55
  Speaker 2: The idea is to lure more users onto the cloud
• 1:58
  Speaker 2: and then make bank later.
• 2:00
  Speaker 1: The problem is, b man investors wanted the bank now,
• 2:03
  Speaker 1: and at lassians shares dropped more than seventeen percent. So
• 2:06
  Speaker 1: what is the key learning here.
• 2:07
  Speaker 2: Markets trade on future expectations, not past results.
• 2:11
  Speaker 1: Despite the fact that it Lassian saw revenue up in
• 2:13
  Speaker 1: the previous quarter, next quarter's guidance was well below investor expectation.
• 2:18
  Speaker 2: That's because markets don't just reward strong results, they trade
• 2:21
  Speaker 2: on future vibes. But Joseiboy, Wall Street doesn't always have
• 2:24
  Speaker 2: patients for the long term plays, particularly in the current environment.
• 2:28
  Speaker 1: This has happened to many companies previously as well, who
• 2:30
  Speaker 1: disappointed investors with their guidance.
• 2:32
  Speaker 2: Yeah. Remember Snap's first quarter results in twenty twenty five
• 2:35
  Speaker 2: much better than expected. Revenue was up fourteen percent.
• 2:38
  Speaker 1: But share price fell fourteen percent because Snap couldn't provide
• 2:41
  Speaker 1: a guidance for the next quarter.
• 2:43
  Speaker 2: So jazieboy, when you're a public company, even strong quarterly
• 2:46
  Speaker 2: performances can be overshadowed by concerning forward guidances.
• 2:51
  Speaker 1: For our second story, McDonald's has served up another drop
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  Speaker 1: in sales after low and middle income diners have been
• 2:58
  Speaker 1: squeezing every penny.
• 2:59
  Speaker 2: Even the minecraft happy meal could save them this day,
• 3:03
  Speaker 2: jussy boy, So tell me more.
• 3:04
  Speaker 1: Okay, Well, we'll know Mackide's as the world's largest fast
• 3:07
  Speaker 1: food chain with its delicious Nuggies, Mcflurries, and of course,
• 3:11
  Speaker 1: the regretful late night cheeseburger run.
• 3:12
  Speaker 2: Yep, they've been Flippenberger since nineteen forty and operating in
• 3:16
  Speaker 2: over one hundred countries.
• 3:17
  Speaker 1: But be man, Lately the golden archers have been looking
• 3:20
  Speaker 1: a little more tarnish. Yep.
• 3:21
  Speaker 2: Macis has reported a three point six percent drop in
• 3:24
  Speaker 2: same store sales.
• 3:25
  Speaker 1: This ain't just one off. This is the second quarter
• 3:27
  Speaker 1: in a row they've suffered a dip.
• 3:29
  Speaker 2: In fact, this was its worst sales dropped since the
• 3:32
  Speaker 2: twenty twenty lockdowns, when even Ronald McDonald himself was working
• 3:35
  Speaker 2: from home.
• 3:36
  Speaker 1: And the man in the last quarter. Macis blamed the
• 3:38
  Speaker 1: dip on lower income groups cutting.
• 3:40
  Speaker 2: Down, but the real kicker is that even middle income
• 3:43
  Speaker 2: consumers are cutting back as well.
• 3:44
  Speaker 1: And be man, this is a sign that there is
• 3:46
  Speaker 1: even more economic pressure.
• 3:48
  Speaker 2: Not even their new value menu or the Minecraft movie
• 3:52
  Speaker 2: promo could stop the.
• 3:53
  Speaker 1: Fall, and this once recession proof stock might be losing
• 3:56
  Speaker 1: its title.
• 3:57
  Speaker 2: So what is the key learning here?
• 3:58
  Speaker 1: In tough times, brands that are typically recession proof are
• 4:01
  Speaker 1: suddenly under pressure.
• 4:03
  Speaker 2: McDonald's has always been known as a pretty defensive stock.
• 4:07
  Speaker 1: Yeah, the idea is that when budgets tightened, people still
• 4:09
  Speaker 1: grab a cheap meal from Mackide's.
• 4:11
  Speaker 2: Other defensive stocks the companies in the utility space, or
• 4:14
  Speaker 2: the consumer staples industries.
• 4:16
  Speaker 1: Like Coca Cola, which is Warren Buffet's favorite.
• 4:19
  Speaker 2: Because people have got to eat and people have got
• 4:21
  Speaker 2: to use electricity.
• 4:21
  Speaker 1: But this quarter shows that even McDonald's isn't immune from
• 4:24
  Speaker 1: the cost of living pain.
• 4:26
  Speaker 2: So juz boy, it's a pretty big wake up call.
• 4:28
  Speaker 2: That's so called recession proof stocks aren't exactly a bulletproof
• 4:32
  Speaker 2: right now.
• 4:33
  Speaker 1: And when consumers starts skipping on those golden salty fries,
• 4:37
  Speaker 1: you know that discretionary spending is seriously under fire.
• 4:40
  Speaker 2: For our third and final story, Amazon has beaten its
• 4:43
  Speaker 2: earnings expectations, but tariffs and trade drama were the unwanted
• 4:47
  Speaker 2: guests crashing the investor update.
• 4:49
  Speaker 1: Trade drama is the plot twist. Amazon did not need banan,
• 4:52
  Speaker 1: so tell me more.
• 4:53
  Speaker 2: Well, we all know Amazon, the e commerce behemoth, started
• 4:55
  Speaker 2: in around nineteen ninety four.
• 4:57
  Speaker 1: Grew from books online to pretty much everything.
• 5:00
  Speaker 2: Yeah, we're talking cloud infrastructure, to kindle book readers, to
• 5:04
  Speaker 2: an AI helper in Alexa, and so much more.
• 5:07
  Speaker 1: Yeah, and be man late last week, investors were waiting
• 5:09
  Speaker 1: with baited breath to hear about how the tariffs had
• 5:11
  Speaker 1: impacted Amazon's last quarter, and the answer not much at all.
• 5:14
  Speaker 1: In fact, Amazon's ad business grew nineteen percent this quarter,
• 5:17
  Speaker 1: which made it one of the fastest growing arms of
• 5:19
  Speaker 1: the company.
• 5:20
  Speaker 2: Amazon reported quarterly revenue of more than one hundred and
• 5:23
  Speaker 2: fifty five billion US dollars, which did yes, beat investor expectations.
• 5:27
  Speaker 1: Then it's share price dropped.
• 5:28
  Speaker 2: Why you ask, tariffs and taxes.
• 5:31
  Speaker 1: Yeah, but Amazon is trying to keep its prices stable
• 5:34
  Speaker 1: for as long as possible by forward buying.
• 5:36
  Speaker 2: Interesting, what is the key learning here?
• 5:38
  Speaker 1: Forward buying is when companies purchased large volumes of stock
• 5:41
  Speaker 1: in advance.
• 5:42
  Speaker 2: It's a bit like panic buying, but for big companies.
• 5:44
  Speaker 1: Yeah, they do it to glock in current prices and
• 5:46
  Speaker 1: ensure there's enough supply at that price because Jazu boy,
• 5:49
  Speaker 1: we know right now there is a genuine risk of
• 5:52
  Speaker 1: one hundred and forty five percent cost increases for Amazon
• 5:55
  Speaker 1: thanks to tariffs and be man Typically, forward buying is
• 5:58
  Speaker 1: a tactic used by infantry managers to reduce volatility.
• 6:01
  Speaker 2: Maybe currency changes.
• 6:03
  Speaker 1: Or concerns around the supply of good, but.
• 6:05
  Speaker 2: In twenty twenty five, it's also a trade war survival strategy.
• 6:08
  Speaker 1: Get this, Approximately fifty percent of Amazon's products are likely
• 6:12
  Speaker 1: to be affected by these whopper tariffs according to UBS.
• 6:15
  Speaker 2: So Amazon is forward buying from tariff hit countries like
• 6:18
  Speaker 2: China so it can hedge it spets.
• 6:20
  Speaker 1: And this allows them to sell goods at pre tariff
• 6:22
  Speaker 1: prices for longer.
• 6:23
  Speaker 2: But it's a double edged sword because if Amazon stockpiles
• 6:26
  Speaker 2: too much stock, it can tie up cash and its warehouses.
• 6:30
  Speaker 1: Fluxlamm, gen Z, millennials and gen X. They all have
• 6:34
  Speaker 1: very different money mindsets, very different saving and spending habit
• 6:37
  Speaker 1: and of course investing mindsets as well, so we cover
• 6:40
  Speaker 1: it all in the Flux app with feedback from the
• 6:42
  Speaker 1: whole Flux community. Do you want to learn more about
• 6:44
  Speaker 1: the different mindsets of all the different generations and make
• 6:47
  Speaker 1: sure to check it out.
• 6:47
  Speaker 2: Thanks for listening and we'll see you on Wednesday.