Latest / What the Flux / JB-Hi Fi's sales up, share price down | Trump's tariff on Australian goods | Musk's godfather offer for OpenAI

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JB-Hi Fi's sales up, share price down | Trump's tariff on Australian goods | Musk's godfather offer for OpenAI · What the Flux

• 0:05
  Speaker 1: This is what the Flux. I'm Brett and I't justin
• 0:07
  Speaker 1: and it's Wednesday, the twelve for February, Dozy Boyd. The
• 0:10
  Speaker 1: ATO has been cracking down left, right and center, and
• 0:13
  Speaker 1: the latest industry to feel their wrath is sunscreen. Get
• 0:17
  Speaker 1: this one. You may not know this, but sunscreen is
• 0:19
  Speaker 1: actually GST three. But now the ATO has said that
• 0:22
  Speaker 1: if you want to sell sunscreen GST three, the product
• 0:25
  Speaker 1: needs to be marketed principally as sun protection, not a
• 0:29
  Speaker 1: strawberry lip farm with SBF fifteen fox A. Did you
• 0:32
  Speaker 1: know the ASX index in January wrotes four point six percent,
• 0:36
  Speaker 1: which is a pretty good flex for the first month
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  Speaker 1: of the year. There are some seriously top performing stocks
• 0:41
  Speaker 1: in ASX from January and we have it all covered
• 0:43
  Speaker 1: in the Flux out, so make sure to check it
• 0:45
  Speaker 1: out to see what were the best performing stocks in
• 0:47
  Speaker 1: January this year. Three Beta stories today, Chuzzy boy, Let's
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  Speaker 1: do it for our first. JB Hi Fi has announced
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  Speaker 1: better than expected sales growth for the past six months,
• 0:57
  Speaker 1: but its share price still fell five percent. Robo Vacuum's
• 1:01
  Speaker 1: really leading from the frontier for JB High Fi. So
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  Speaker 1: what's going on? Well? Jbhigh Fi is obviously the ossie
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  Speaker 1: electronics of retailer that's been around since nineteen seventy four YEP.
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  Speaker 1: Back in the day, it was selling twenty inch TVs
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  Speaker 1: and Elton Junker setts that got schewed up in your cartterea.
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  Speaker 1: Nowadays we're talking everything from iPhones to smart home devices,
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  Speaker 1: TV's washing machines with Wi fi that practically does your
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  Speaker 1: taxes for you and men man. Jbhigh Fi also owns
• 1:25
  Speaker 1: the Good Guys and more recently n S, which had
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  Speaker 1: acquired in September last year, and now jbhi Fi has
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  Speaker 1: announced sales growth of nearly ten percent for the six
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  Speaker 1: months to December and net profit rows eight percent as well.
• 1:36
  Speaker 1: But while that sounds good, it's share price fell five
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  Speaker 1: percent y jbco was a little cautious. He said they're
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  Speaker 1: expecting rising prices from suppliers and that will be passed
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  Speaker 1: on to consumers and it might impact their upcoming results
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  Speaker 1: and be man. Might I remind you that JB has
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  Speaker 1: been trading on a forward profit multiple of just over
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  Speaker 1: twenty three times YEP. Compare that to a long term
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  Speaker 1: average for the consumer discretionary sector of about eighteen times,
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  Speaker 1: so be Man, investors were thinking, maybe it's time to
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  Speaker 1: reconsider this stock. So what is the key learning here?
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  Speaker 1: Investors don't just look at what companies have done in
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  Speaker 1: the past, but also they look at what's next. And
• 2:12
  Speaker 1: when a company's share price has jumped seventy percent in
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  Speaker 1: a year a hem JB high five, expectations go through
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  Speaker 1: the roof and that's where forward profit multiples come in.
• 2:21
  Speaker 1: A forward profit multiple compares a company's share price to
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  Speaker 1: its expected future earnings. If the profit multiple is high
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  Speaker 1: compared to the sector's average, it means that investors are
• 2:30
  Speaker 1: betting on strong future growth. But if growth starts to
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  Speaker 1: slow down, even slightly, the market can punish the company,
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  Speaker 1: and that is what happened here with JB Hello five
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  Speaker 1: percent drop in share value. For our second story, Donald
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  Speaker 1: Trump has warned of a fresh set of tariffs and
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  Speaker 1: this time it could affect the Australian economy in a
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  Speaker 1: big way. Strap on your heart, hat b Man, because
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  Speaker 1: we're back in the era of Trump tariffs. So tell
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  Speaker 1: me what well, Jasi boy. We spoke on the pod
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  Speaker 1: the other week about Trump's plan to put twenty five
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  Speaker 1: percent tariffs on Canada and Mexico which temporarily pause, and
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  Speaker 1: a ten percent tariff on Chinese goods, which has already
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  Speaker 1: kind of started a bit of a trade war. Yes,
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  Speaker 1: but now Donald Trump has warned of a new tariff
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  Speaker 1: on any steel and aluminium that comes into the US,
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  Speaker 1: or is the US like to call it aluminum. He's
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  Speaker 1: planning to put a twenty five percent tariff on these imports.
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  Speaker 1: That's a tax on imported goods. Now, in the past,
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  Speaker 1: be Man Australia has got a get out of tariff
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  Speaker 1: jail free car. By this time, Trump's saying no exception.
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  Speaker 1: So next minute Albert gave Trump a call and begged
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  Speaker 1: for an exemption, which is supposedly under consideration. So what's
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  Speaker 1: the key learning here? There is an age old debate
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  Speaker 1: between free trade and protectionism. Free trade means countries remove
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  Speaker 1: barriers like tariff, which makes it easier to buy and
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  Speaker 1: sell goods across borders. Now, protectionism, on the other hand,
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  Speaker 1: is when a country places trade barriers on imports to
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  Speaker 1: protect their local industries from foreign competition and be man.
• 3:51
  Speaker 1: The US has traditionally supported free trade, but under Trump,
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  Speaker 1: tariffs have become his go to economic weapon. But does
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  Speaker 1: this boy Unfortunately, Australia is particular vulnerable to global trade wars,
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  Speaker 1: and that's because we export everything around the world, from
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  Speaker 1: einor to the US and wine to China back. Australia
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  Speaker 1: exported one billion dollars in aluminium, iron and steel to
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  Speaker 1: the US in twenty twenty three. So if tariff's are introduced,
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  Speaker 1: the government needs to throw on its hide his vest
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  Speaker 1: and hustle hard to protect Australia's interests on the global stage.
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  Speaker 1: For our third and final story, a group of investors
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  Speaker 1: are led by Elon Musk, has made a ninety seven
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  Speaker 1: point four billion US dollar offer to buy the non
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  Speaker 1: profit organization that controls chat GPT, who clearly Elon not
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  Speaker 1: happy enough with his XAI. So what is going on here? Well,
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  Speaker 1: the company behind chat GPT is called open Ai and
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  Speaker 1: it was initially launched in twenty fifteen as a non
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  Speaker 1: profit research lab and b man. It was co founded
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  Speaker 1: by a man called Sam Holtman and Elon Musk, but Juzboy.
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  Speaker 1: In twenty nineteen, Elon left open AI and Altman created
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  Speaker 1: a capped profit subsidiary which allowed open ai to raise
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  Speaker 1: capital from external investors, and since then it's been an
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  Speaker 1: all out war between Musk and Altman because Elon Musk,
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  Speaker 1: for lease, open ai has violated its founding mission to
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  Speaker 1: remain as a nonprofit. But now Musk and a group
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  Speaker 1: of investors have put a ninety seven point four billion
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  Speaker 1: US dollar offer to open ai, the nonprofit organization which
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  Speaker 1: also happens to own a portion of the for profit part.
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  Speaker 1: And just as this offer sent the Internet into a spin,
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  Speaker 1: open Ai CEO Sam Altman responded on X no, thank
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  Speaker 1: you to your offer, but we will buy Twitter for
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  Speaker 1: nine point seventy four billion if you want just a reminder,
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  Speaker 1: Elon Musk acquired X for forty four billion dollars in
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  Speaker 1: twenty twenty two. Ouch and be man. Well, this might
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  Speaker 1: just look like another tech profud it actually highlights the
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  Speaker 1: challenge of scaling nonprofit tech businesses. So what's the key
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  Speaker 1: learning here? Balancing mission and money is one of the
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  Speaker 1: trickiest challenges for fast growing companies. Multiple well known tech
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  Speaker 1: companies started out as mission driven nonprofits but later shifted
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  Speaker 1: to for profit models in order to scale the business
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  Speaker 1: and be man This can create a heap of tension
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  Speaker 1: for employees, the comp the directors, and the financial backers
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  Speaker 1: of these companies and Jaseyboy. OpenAI ain't the first company
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  Speaker 1: to face this non profit verse profit conundrum. Nope. Mozilla,
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  Speaker 1: which is the web browser. They started as a nonprofit initiative,
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  Speaker 1: but then it created a for profit subsidiary called Mozilla
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  Speaker 1: Corporation to compete better with Google Chrome and Microsoft Edge.
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  Speaker 1: Then there's also deep Mind, which was an AI research
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  Speaker 1: lab originally focused on ethical AI development, which was acquired
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  Speaker 1: by Google for four hundred million US dollars in twenty fourteen.
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  Speaker 1: So b man, it'll be interesting to see if open
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  Speaker 1: ai will prioritize cash or return to its original mission.
• 6:34
  Speaker 1: Flux maam the ASEX two hundred indexecute is an all
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  Speaker 1: time high at the end of January and has continued
• 6:40
  Speaker 1: to go up and up and up. We take a
• 6:42
  Speaker 1: look at the four best performing ASX stocks in January
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  Speaker 1: twenty twenty five, and you might be surprised who's up there.
• 6:47
  Speaker 1: To make sure to check out the Flux out to
• 6:49
  Speaker 1: see the winners from January. Thanks for listening and we'll
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  Speaker 1: see you on for Friday