Latest / What the Flux / Qantas steps up in battle with Virgin Australia | Nvidia outperforms everyone | Adobe's billion-dollar marketing play

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Qantas steps up in battle with Virgin Australia | Nvidia outperforms everyone | Adobe's billion-dollar marketing play · What the Flux

• 0:05
  Speaker 1: This is what the flax. I'm Brett and I've justin.
• 0:08
  Speaker 1: It's Friday, the twenty first of November, does it? Wait?
• 0:10
  Speaker 2: Webjet could be called Hello Webjetty pretty soon. Hello World
• 0:15
  Speaker 2: is the old school travel agent with old school shops
• 0:17
  Speaker 2: and making the bookings for you. And it's just made
• 0:20
  Speaker 2: a three hundred and fifty three million dollar takeover offer
• 0:22
  Speaker 2: for Webjets. Next minute, webjets share price spike seventeen percent,
• 0:26
  Speaker 2: So watch this airspace.
• 0:28
  Speaker 1: It'd be very interesting there be man by time. We
• 0:30
  Speaker 1: often hear in Australia that property is the great Australian dream,
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  Speaker 1: But in terms of financial returns, is that actually stack
• 0:36
  Speaker 1: up well? We have done a deep dive comparing the
• 0:38
  Speaker 1: returns to the property market, ver's the returns in the
• 0:41
  Speaker 1: share market over the last ten years. So if you
• 0:43
  Speaker 1: want to learn which one comes out on top, make
• 0:45
  Speaker 1: sure to download the Flux app and check out our
• 0:47
  Speaker 1: latest article.
• 0:48
  Speaker 2: Three riveting Stories Today Juzzy Boy, let's do it for
• 0:51
  Speaker 2: our first Quantas is taking the loyalty battle to Virgin
• 0:54
  Speaker 2: Australia head on with a new membership program for Jetstar.
• 0:57
  Speaker 1: Battle of the Aussi air Lines is on BMN so
• 1:00
  Speaker 1: what is the story here?
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  Speaker 2: Right? So we know Quantus is Australia's biggest domestic and
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  Speaker 2: international airline, founded in nineteen twenty.
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  Speaker 1: And it also owns Jetstar, which is the budget friendly
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  Speaker 1: airline for people who can't justify the full service prices and.
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  Speaker 2: Who don't need a free biki or tea on their flight.
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  Speaker 1: Now, be man, get this together. Quantus and Jetstar hold
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  Speaker 1: over sixty percent market share of the domestic aviation market and.
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  Speaker 2: Jesus, wait, we know that Virgin holds about thirty percent
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  Speaker 2: market share and is pretty much Jetstar's only rival.
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  Speaker 1: So now, be man. Quantus wants to lure these Virgin
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  Speaker 1: Australia customers back to Jetstar.
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  Speaker 2: And they're dangling their shiny rewards program as bait.
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  Speaker 1: As part of this new annual membership, Jetstar customers will
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  Speaker 1: be able to earn frequent Flyer status credits and points
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  Speaker 1: equivalent to Quantus flights. Now.
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  Speaker 2: Quantus claims that the goal of expanding the program is
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  Speaker 2: to offer more passengers the chance to gain more points
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  Speaker 2: and credit.
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  Speaker 1: But it seems like the real reason is to squeeze
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  Speaker 1: Virgin's business on both ends of the market with their
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  Speaker 1: duel brand strategy. Fascinating, So what's the key learning. The
• 1:57
  Speaker 1: duel brand strategy is when a company uses two dis
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  Speaker 1: distinct brands to target different customer types in the same market.
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  Speaker 2: This allows them to experiment with different service styles and
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  Speaker 2: compete at both premium and budget levels.
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  Speaker 1: Man Quantisant jets are are a classic example of the
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  Speaker 1: dual brand strategy, and.
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  Speaker 2: Juzboy it's not that uncommon.
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  Speaker 1: Nope, We've seen it with Singapore Airlines, which owns budget
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  Speaker 1: airlines Scoot as well.
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  Speaker 2: And passengers can earn Chris Flyer loyalty points across both
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  Speaker 2: of those airlines.
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  Speaker 1: We've also seen it with Toyota and their premium brand
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  Speaker 1: Lexus as well.
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  Speaker 2: And jesse Boy. In twenty twenty two, the last time
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  Speaker 2: jets are reported on passenger numbers, it flew nineteen million
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  Speaker 2: passengers in a year, and that.
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  Speaker 1: Means nineteen million more people who have the option to
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  Speaker 1: snag frequent fly points when they travel.
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  Speaker 2: So by capturing both the high and low ends of
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  Speaker 2: the market with its loyalty program, it leaves single brand
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  Speaker 2: airlines like Old Virgin battling to find their niche.
• 2:47
  Speaker 1: For our second story, Nvidia is keeping the AI boom
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  Speaker 1: alive as it outperformed the very lofty expectations of investors,
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  Speaker 1: and the whole market rose on the news.
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  Speaker 2: The AI crash and burn that skeptics were hoping for
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  Speaker 2: has not arrived.
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  Speaker 1: Tell me more, Okay, so in Video is the US
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  Speaker 1: chip maker whose GPU chips pretty much power every single
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  Speaker 1: major AI model in the whole wide world.
• 3:08
  Speaker 2: Fun fact, in Video was worth just four hundred billion
• 3:10
  Speaker 2: US dollars three years ago.
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  Speaker 1: And more recently, it became the first company to hit
• 3:15
  Speaker 1: a five trillion US dollar valuation, now Josey Boy.
• 3:18
  Speaker 2: Over the past week, the broader share market has become
• 3:20
  Speaker 2: quite jittery.
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  Speaker 1: Yeah, there was a fear of a bubble in AI stocks,
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  Speaker 1: especially in Video, which they were concerned might not hit
• 3:26
  Speaker 1: the lofty expectations of investors.
• 3:28
  Speaker 2: But fear not, Juzzy Boy in Video has pulled through
• 3:30
  Speaker 2: once again with this quarter's numbers exceeding investor expectations.
• 3:34
  Speaker 1: We're talking revenue of fifty seven billion US dollars for
• 3:37
  Speaker 1: the quarter, up.
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  Speaker 2: Sixty two percent year on year, better than expectations.
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  Speaker 1: And for next quarter they're forecasting sixty five billion US dollars.
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  Speaker 2: For Josei Boy, who is paying for all these chippys.
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  Speaker 1: So I'm glad you asked, because sixty one percent of
• 3:49
  Speaker 1: in Video's revenue comes from four customers name and shame.
• 3:53
  Speaker 1: Well in video calls them customer A, customer B, customer C,
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  Speaker 1: and D, with the largest customer accounting for twenty two
• 3:59
  Speaker 1: percent scent of in Videa's entire revenue.
• 4:01
  Speaker 2: We don't know exactly who is who, but everyone assumes
• 4:03
  Speaker 2: this is Microsoft, Amazon, Meta, and open Ai.
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  Speaker 1: So investors breeded a sigh of relief after this news, and.
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  Speaker 2: It pretty much pulled up the whole market. Given in
• 4:12
  Speaker 2: video's impact these days.
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  Speaker 1: So true, So what is the key learning here?
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  Speaker 2: When one giant becomes so dominant, its results can move
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  Speaker 2: entire indices.
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  Speaker 1: And that means the upside is huge, But so is
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  Speaker 1: the potential downside.
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  Speaker 2: And the bigger in video gets, the more markets rely
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  Speaker 2: on it to keep delivering ridiculous growth.
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  Speaker 1: If fact, beman in videos share gains this year have
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  Speaker 1: accounted for eighteen percent of the entire sm P five
• 4:34
  Speaker 1: hundred total turn for this year.
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  Speaker 2: The problem is that if in video ever misses or
• 4:38
  Speaker 2: hits an unexpected speed bump, it will drag the whole
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  Speaker 2: market down.
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  Speaker 1: Think Microsoft, Think Amazon, Alphabet Meta. The very customers buying
• 4:45
  Speaker 1: all of these chips, in fact, be man Even in Australia,
• 4:48
  Speaker 1: the tech sector gets confidence from in Video.
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  Speaker 2: In fact, it was up five point one percent yesterday
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  Speaker 2: off the back of the Nvidia news. So for now
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  Speaker 2: the results have settled the concerns of investors.
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  Speaker 1: But you can only imagine this concern will come up
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  Speaker 1: again and again each quarter for in Video given their
• 5:03
  Speaker 1: frothy frothy evaluation.
• 5:04
  Speaker 2: For our third and final story, Adobe has dropped almost
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  Speaker 2: two billion US dollars to buy sem Rush so it
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  Speaker 2: can beef up its marketing and AI tools.
• 5:13
  Speaker 1: Everyone's favorite PDF overlord is a backshopping again, so tell
• 5:16
  Speaker 1: me more.
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  Speaker 2: So. Adobe is the creative software giant behind Photoshop and
• 5:20
  Speaker 2: Illustrator and Premiere Pro and of course Acrobat.
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  Speaker 1: Basically the entire design stack used by designers and marketers
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  Speaker 1: and video editors.
• 5:27
  Speaker 2: And what about old sem Rush, Well, they're.
• 5:29
  Speaker 1: A marketing platform and they basically help businesses grow their
• 5:32
  Speaker 1: online presence through a lot of data.
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  Speaker 2: Yep, they help marketers improve their SEO content marketing and
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  Speaker 2: also just spy on competitor's activity.
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  Speaker 1: And now Adobe's announced it will acquire sem Rush for
• 5:42
  Speaker 1: one point nine billion US dollars.
• 5:44
  Speaker 2: That is large. A seventy seven point five percent premium
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  Speaker 2: on their previous share price.
• 5:49
  Speaker 1: Sounds like a pretty steef price to pay our record.
• 5:51
  Speaker 2: Yep, that's because sem Rush isn't a big revenue machine yet.
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  Speaker 1: But Adobe reconds the strategic value of having a marketing
• 5:57
  Speaker 1: platform could be huge for their existing customers.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: The easiest revenue boost isn't finding new customers, it's given
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  Speaker 1: your current ones more reason to stick around.
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  Speaker 2: Adobe knows its core audience inside out.
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  Speaker 1: We'd been talking designers and marketers, creatives as well as
• 6:12
  Speaker 1: agencies and Josie Boy.
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  Speaker 2: These days, those customers don't just create content.
• 6:16
  Speaker 1: Nope, they manage social channels, they write ad campaigns, and
• 6:19
  Speaker 1: they obsess over seo.
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  Speaker 2: So rather than finding new customers, Adobe is widening its
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  Speaker 2: offerings so it can sell more solutions to the same
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  Speaker 2: loyal base.
• 6:26
  Speaker 1: And Spotify did the same thing. It built a huge
• 6:28
  Speaker 1: audience around music streaming.
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  Speaker 2: Then it realized those same listeners also wanted podcasts and
• 6:33
  Speaker 2: audiobooksp So.
• 6:34
  Speaker 1: Adobe is now trying to create a product ecosystem so
• 6:36
  Speaker 1: that it's customers never want to leave flux am did
• 6:39
  Speaker 1: you know in the past twenty years, Australian property has
• 6:42
  Speaker 1: delivered an average of seven point seven percent annual growth
• 6:45
  Speaker 1: and the share market well hasn't done too badly either.
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  Speaker 1: So if you want to know which investment might have
• 6:50
  Speaker 1: been better, they shore you download the Flux app and
• 6:52
  Speaker 1: check out our latest article Shares First Property.
• 6:54
  Speaker 2: Thanks for listening and we'll see you on Monday