Latest / What the Flux / Nvidia invests in Aussie startup | Oracle surges 36% after four-year guidance | Klarna booms on IPO

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Nvidia invests in Aussie startup | Oracle surges 36% after four-year guidance | Klarna booms on IPO · What the Flux

• 0:05
  Speaker 1: This is what the Flux.
• 0:06
  Speaker 2: I'm brand justin and it's Friday, the twelfth of September.
• 0:09
  Speaker 1: Jolly boy. We spoke about an ZID cutting thousands and
• 0:12
  Speaker 1: thousands of jobs earlier this week, and now NAB has
• 0:14
  Speaker 1: also gone banged. They've announced plans to come more than
• 0:17
  Speaker 1: four hundred jobs in its technology and enterprise operations departments,
• 0:21
  Speaker 1: and NAB also plans to move some positions to India
• 0:23
  Speaker 1: and Vietnam.
• 0:24
  Speaker 2: Ouch same. We've spoken a lot about the company set
• 0:27
  Speaker 2: Hire on the Pod in the last couple of years,
• 0:29
  Speaker 2: and we have a deep dive video in the Flux
• 0:32
  Speaker 2: app talking about the ups and the downfall of set Hire.
• 0:35
  Speaker 2: It is very juicy. Make sure to download the Flex
• 0:37
  Speaker 2: app and check out the deep die.
• 0:39
  Speaker 1: Three roller coaster stories today. Juzi boy, let's do it
• 0:41
  Speaker 1: for our first. Psi Quantum, the Aussie quantum computing startup,
• 0:45
  Speaker 1: has raised one billion US dollars and boosted its valuation
• 0:48
  Speaker 1: in the process.
• 0:49
  Speaker 2: So this is the reason for the spike in Brisbane
• 0:51
  Speaker 2: housing prices they've had tell me more so.
• 0:53
  Speaker 1: Psi Quantum is the quantum computing startup that was founded
• 0:56
  Speaker 1: in twenty sixteen by two Australians but had been based
• 0:59
  Speaker 1: in Silicon Valley. Yep Si Quantum has a pretty hairy
• 1:02
  Speaker 1: goal to build the world's first quantum computer, which means
• 1:05
  Speaker 1: exactly what it means.
• 1:07
  Speaker 2: That basically, it would allow humans to solve complex problems
• 1:10
  Speaker 2: exponentially faster than your traditional computer.
• 1:13
  Speaker 1: And this could be used for helpful applications like cracking codes,
• 1:16
  Speaker 1: discovering new drugs, even modeling climate and weather. If you
• 1:19
  Speaker 1: don't mind and.
• 1:19
  Speaker 2: Be man, you may remember that Australia's federal government and
• 1:22
  Speaker 2: Queensland governments became investors in side Quantum last year.
• 1:26
  Speaker 1: Yep Albo turned into a venture capital investor and the
• 1:29
  Speaker 1: two forms of government invested nine hundred and forty million
• 1:32
  Speaker 1: bucks collectively and as.
• 1:33
  Speaker 2: Part of the deal, side Quantum relocated its HDU to Brisbane.
• 1:36
  Speaker 1: But now Si Quantum is back at the table, raising
• 1:39
  Speaker 1: a one billion US dollar round from some heavy hitters.
• 1:42
  Speaker 2: We're talking black Rock, Temasek, Blackbird Benches and the big
• 1:45
  Speaker 2: dog in Nvidia.
• 1:46
  Speaker 1: The new valuation for sy Quantum seven billion US dollary, Doodas.
• 1:49
  Speaker 2: And then Man. Although it's early days, the investment is
• 1:52
  Speaker 2: looking to be a winner for the federal and Queensland governments.
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  Speaker 1: So what is the key learning here?
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  Speaker 2: World changing tech is often invented in one place, but
• 1:59
  Speaker 2: cash in somewhere else.
• 2:00
  Speaker 1: Does it?
• 2:01
  Speaker 2: Boy?
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  Speaker 1: Australia has a track record of letting frontier technology slip
• 2:05
  Speaker 1: off shore.
• 2:05
  Speaker 2: And why is that?
• 2:06
  Speaker 1: Well, partially because local investors or governments haven't been willing
• 2:10
  Speaker 1: to back it early enough.
• 2:11
  Speaker 2: Yeah, the Australian government wanted to avoid a repeat of
• 2:13
  Speaker 2: what happened with photovoltaic cells.
• 2:15
  Speaker 1: Ooh, yes, that's the technology that converts light like solar
• 2:19
  Speaker 1: into electricity.
• 2:20
  Speaker 2: Yeah. And while this tech was invented at the University
• 2:22
  Speaker 2: of New South Wales, it was exported and commercialized in China.
• 2:25
  Speaker 1: China poured in subsidies for R and D, low interest loans,
• 2:28
  Speaker 1: tax breaks and cheap land for factory.
• 2:30
  Speaker 2: And China's believed to own more than eighty percent of
• 2:32
  Speaker 2: the global solar panel market now.
• 2:34
  Speaker 1: Which is expected to grow to a lazy two hundred
• 2:36
  Speaker 1: and eighty seven billion US dollars just by twenty thirty.
• 2:39
  Speaker 2: So clearly Australia's try to change that pattern with quantum computing.
• 2:42
  Speaker 1: And so far, so good. The government's invested an evaluation
• 2:46
  Speaker 1: of just over three billion US dollars and now it's
• 2:48
  Speaker 1: double Albo equals venture capitalists. For our second story, Oracle
• 2:53
  Speaker 1: shares had its best day since nineteen ninety two early
• 2:56
  Speaker 1: this week after a thirty six percent spike thanks to
• 2:59
  Speaker 1: the growth in its AI partnership. Interesting stuff surge, so
• 3:02
  Speaker 1: tell me more so.
• 3:03
  Speaker 2: Oracle is the US tech giant that was co founded
• 3:06
  Speaker 2: in nineteen seventy seven by Larry Ellison, and it's best
• 3:09
  Speaker 2: known for its database software. But not just that, Jaseyboy,
• 3:12
  Speaker 2: Oracle has been a major player in the cloud computing space,
• 3:15
  Speaker 2: also the enterprise software space and IT infrastructure.
• 3:18
  Speaker 1: Yeah. Earlier this week, Oracle announced revenue for the quarter
• 3:21
  Speaker 1: was slightly below what analysts were expecting, but.
• 3:24
  Speaker 2: Its share price still surged up to forty two percent
• 3:27
  Speaker 2: during the day.
• 3:28
  Speaker 1: And the reason for that surge is because of Oracle's
• 3:31
  Speaker 1: future guidance.
• 3:32
  Speaker 2: During the quarter, Oracle signed new deals with the who's
• 3:35
  Speaker 2: who of AI.
• 3:36
  Speaker 1: I'm talking open Ai, Xai, Meta, Invidia, AMD and many others,
• 3:40
  Speaker 1: and as.
• 3:41
  Speaker 2: A result, Oracle expects its cloud revenue to grow from
• 3:43
  Speaker 2: eighteen billion US dollars this year to thirty two bill
• 3:46
  Speaker 2: next year, and then seventy three billion US dollars the
• 3:49
  Speaker 2: following year. And a lazy one hundred and fourteen bill
• 3:52
  Speaker 2: the following and finally, by twenty thirty it expects to
• 3:55
  Speaker 2: hit one hundred and forty four billion US dollars in revenue.
• 3:57
  Speaker 1: That is very long term guidance. Juzzy boy, We can
• 4:00
  Speaker 1: hardly get Australian public listed companies to give six months guidances.
• 4:03
  Speaker 2: And be Man. Clearly, investors lapped it up because Oracle
• 4:06
  Speaker 2: share price had its best day in thirty two.
• 4:08
  Speaker 1: Years when you were in Nappy, So what's the key
• 4:10
  Speaker 1: learning here?
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  Speaker 2: Guidance can be a double edged sword for companies.
• 4:13
  Speaker 1: YEP. Investors love the fact that Oracle is willing to
• 4:15
  Speaker 1: give four years of precise forecast, but it also.
• 4:18
  Speaker 2: Sets a very high bar for the company to meet.
• 4:20
  Speaker 1: Because investors have now purchased the stock on the basis
• 4:23
  Speaker 1: of this lofty guidance.
• 4:24
  Speaker 2: Yep and be Man. For example, if growth was to
• 4:27
  Speaker 2: slow or the AI boom calls off, the disappointment for
• 4:30
  Speaker 2: Racle investors could really sting.
• 4:32
  Speaker 1: YEP over promising create short term excitement but also long
• 4:35
  Speaker 1: term risk.
• 4:35
  Speaker 2: Might I remind you, be Man that big contracts don't
• 4:38
  Speaker 2: always mean guaranteed cash.
• 4:39
  Speaker 1: Yep. Oracle has announced fo one hundred and fifty five
• 4:41
  Speaker 1: billion dollars in revenue for quote remaining performance obligations.
• 4:45
  Speaker 2: And this sounds massive, But these are future commitments and
• 4:49
  Speaker 2: not exactly dollars in the bank just yet. So be
• 4:52
  Speaker 2: man guidances should be treated as a long range of
• 4:54
  Speaker 2: forecast rather than a long term certainty.
• 4:57
  Speaker 1: But it seems like Oracle investors missed that memo.
• 5:00
  Speaker 2: Our third and final story, Klana, the Swedish bye now
• 5:03
  Speaker 2: pay Later, has seen it shares rise fifteen percent in
• 5:05
  Speaker 2: their first day of trading on the New York Stock Exchange.
• 5:08
  Speaker 1: Looks like banpl isn't just dead yet, Jazzy Boy, far
• 5:11
  Speaker 1: from it. What's happening here?
• 5:12
  Speaker 2: So Klana is one of the og buy now, pay
• 5:14
  Speaker 2: latter companies. It was founded in Sweden.
• 5:16
  Speaker 1: In fact, it actually launched in two thousand and five,
• 5:18
  Speaker 1: around nine years before After Pay, and came.
• 5:21
  Speaker 2: To Australia in only twenty twenty. A man at Klana's
• 5:23
  Speaker 2: business and its valuation has had more ups and downs
• 5:26
  Speaker 2: than a Disney World rollercoaster. Well.
• 5:28
  Speaker 1: In twenty nineteen, Klana's valuation was around five and a
• 5:30
  Speaker 1: half billion US dollars, and then it rocketed to forty
• 5:33
  Speaker 1: five and a half billion US dollars. In twenty twenty.
• 5:36
  Speaker 2: One, Trusty Old SoftBank came in with the overpriced valuation.
• 5:39
  Speaker 1: Good yeah, But by twenty twenty two it raised again
• 5:41
  Speaker 1: at just six point seven billion US dollars, or.
• 5:44
  Speaker 2: An eighty five percent haircut on its previous valuation. And
• 5:46
  Speaker 2: now Klana's finally listed on the New York Stock Exchange
• 5:49
  Speaker 2: at a fifteen billion US dollar valuation.
• 5:51
  Speaker 1: Next Minute shares up fifteen percent, and.
• 5:53
  Speaker 2: Its IPO is a sign of renewed investor confidence in
• 5:56
  Speaker 2: the buy now, pay later sector.
• 5:58
  Speaker 1: YEP, especially after rising interest rates previously threatened its existence.
• 6:02
  Speaker 2: So what is the key learning here?
• 6:03
  Speaker 1: When interest rates rise, free credit isn't really free for
• 6:07
  Speaker 1: buying our paylata companies. The model works by borrowing money
• 6:10
  Speaker 1: from large lenders at wholesale rates and then offering shoppers
• 6:13
  Speaker 1: interest free installments.
• 6:14
  Speaker 2: And then retailers cover the costs through a fee on
• 6:17
  Speaker 2: each transaction.
• 6:18
  Speaker 1: In fact, Bain and Co. Found the average BNPL fee
• 6:21
  Speaker 1: charged was four point eighty four percent.
• 6:23
  Speaker 2: But ben Man this model only works if the margin
• 6:25
  Speaker 2: between the cost of borrowing and the retailer fee stays healthy.
• 6:29
  Speaker 1: But when cash rates climb, that margin gets a little
• 6:31
  Speaker 1: squeeze and that's why rising rates in twenty twenty two
• 6:34
  Speaker 1: and twenty twenty three, pushed by now pay lad out
• 6:36
  Speaker 1: to the brink of collapse bet Dozy boy Klan as
• 6:39
  Speaker 1: strong IPO, shows that confidence has returned to this buying
• 6:41
  Speaker 1: our pay later sector.
• 6:43
  Speaker 2: Fluxam. We've done a deep dive in the Flux app
• 6:45
  Speaker 2: of satire, taking through all the different stages and it
• 6:48
  Speaker 2: is very juicious. If you want to learn more, make
• 6:50
  Speaker 2: sure you download the Flux app and check it out.
• 6:52
  Speaker 1: Thanks for listening and we'll see you on Monday