Latest / What the Flux / Inflation hits 3 year low | Dropbox cuts 20% of jobs | Reddit shares earns more karma

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Inflation hits 3 year low | Dropbox cuts 20% of jobs | Reddit shares earns more karma · What the Flux

• 0:05
  Speaker 1: This is what the Flux. I'm Brettanna Justin and it's
• 0:08
  Speaker 1: bright a first of November. Do boy.
• 0:10
  Speaker 2: Canva is coming back with a vengeance. Remember during peak
• 0:13
  Speaker 2: COVID when it scored a forty billion US dollar evaluation,
• 0:16
  Speaker 2: Well it dropped down to twenty six billion at one stage,
• 0:18
  Speaker 2: but now back to thirty two billion US dollars. Seems
• 0:22
  Speaker 2: like some investors are very keen to get a little
• 0:24
  Speaker 2: slice before it's long away to the IPO. When is
• 0:27
  Speaker 2: this IPO.
• 0:28
  Speaker 1: Five, twenty twenty six, twenty thirty centuries? And then you're
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  Speaker 1: on your notifications to play quick stix today.
• 0:49
  Speaker 2: Three victorious stories today, Juzzy boy, let's do it for
• 0:53
  Speaker 2: our first. Australia's quarterly inflation is below three percent for
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  Speaker 2: the first time since twenty twenty one if you don't mind,
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  Speaker 2: but the reserve is still and I repeat, still unlikely
• 1:02
  Speaker 2: to make a rate cut next week.
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  Speaker 1: What will it take, Michelle Bullock, what will it take?
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  Speaker 1: Will be man?
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  Speaker 2: Well as you know, Juzzy Boy, Inflation has been one
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  Speaker 2: of the most talked about topics over the last three years.
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  Speaker 2: I'm sick of it, yeap.
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  Speaker 1: Ever since COVID hit, billions of dollars in stimulus. Money
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  Speaker 1: was pumped into the economy and inflation exploded like a
• 1:19
  Speaker 1: buttery popcorn in a microwave.
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  Speaker 2: We're talking inflation jumping to a high of seven point
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  Speaker 2: eight percent here in Australia.
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  Speaker 1: But be man now, Australia's inflation rates the lowest rate
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  Speaker 1: in three and a half years now.
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  Speaker 2: According to the Australian Bureau of Statistics, the annual inflation
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  Speaker 2: rate fell to just two point eight percent and they
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  Speaker 2: know their way around a stat.
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  Speaker 1: Yeap, down from three point eight percent during the middle
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  Speaker 1: of the year as well.
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  Speaker 2: And Jessie boy, the good news is that we saw
• 1:40
  Speaker 2: the price of petrol drop and power too, although rant
• 1:43
  Speaker 2: and building costs still rise here. Just calm your farm
• 1:45
  Speaker 2: for one momentum, because despite these positive ish results, the
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  Speaker 2: Reserve Bank of Australia still isn't expected to cut rates
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  Speaker 2: this year.
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  Speaker 1: But we are heading closer, particularly as the trimmed mean
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  Speaker 1: dropped to three and a half percent.
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  Speaker 2: As well, which is getting closer to its target of
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  Speaker 2: two to three percent.
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  Speaker 1: So what is the key learning here?
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  Speaker 2: The trimmed mean is like taking a group of test
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  Speaker 2: scores and removing the highest and the lowest ones to
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  Speaker 2: find a better average. Yet we know the extreme scores
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  Speaker 2: could affect the overall picture and kind of misleads people.
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  Speaker 2: So in the case of inflation, the trimmed mean chucks
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  Speaker 2: out some of the more volatile items.
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  Speaker 1: And this gives the RBA a clearer picture of the
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  Speaker 1: real inflation trends.
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  Speaker 2: For example of Judzy Boy, the government has created an
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  Speaker 2: energy rebate which gives power bill credit and this can
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  Speaker 2: totally skew the overall inflation rate. So the trimmed mean
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  Speaker 2: cuts out all of the temporary spikes in prices.
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  Speaker 1: For the ABA, I want to see consistent drops in
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  Speaker 1: inflation before dropping the cash rain.
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  Speaker 2: That may take a few more months.
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  Speaker 1: For our second story, Dropboxes announced it will lay off
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  Speaker 1: twenty percent of its workforce after it struggles through a
• 2:46
  Speaker 1: transitional period, never a good term a transitional period in
• 2:50
  Speaker 1: a corporate company. Juzzy boy, So what is going on here?
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  Speaker 1: So v Man Dropbox launch back in two thousand and
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  Speaker 1: seven when Rihanna is singing Umbrella all over the radio eight.
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  Speaker 2: And by the way, back when USB's with a course
• 3:00
  Speaker 2: thing since floppy.
• 3:01
  Speaker 1: Disks now, but Man, back then, dropboxes founder had an
• 3:04
  Speaker 1: idea to launch storage that wasn't on a USB but
• 3:06
  Speaker 1: actually stored online.
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  Speaker 2: And while that sounds quite elementary now, it was revolutionary
• 3:11
  Speaker 2: at the time.
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  Speaker 1: They went viral in two thousand and eight when Dropbox
• 3:14
  Speaker 1: ran a referral campaign that helped double its userbase every
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  Speaker 1: three months for two years.
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  Speaker 2: And since then it's grown to more than seven hundred
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  Speaker 2: million registered users.
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  Speaker 1: And eighteen million paying uses as well.
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  Speaker 2: But now, dozy Boy, Dropbox is going to lay off
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  Speaker 2: twenty percent of its workforce, which is more than five
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  Speaker 2: hundred people.
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  Speaker 1: The goal is to make cuts in areas where Dropbox
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  Speaker 1: has over invested.
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  Speaker 2: And why are they making these?
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  Speaker 1: Their big big cuts willbe man. Dropbox has lost serious
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  Speaker 1: market share to many of its rivals, like Little Drive,
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  Speaker 1: Microsoft's one Dried, Apple's iCloud.
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  Speaker 2: In fact, Dropbox only added sixty three thousand new uses
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  Speaker 2: in the most recent quarter.
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  Speaker 1: Which was its lowest quarter of growth in its history.
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  Speaker 2: Oh boy, So what is the key learning here in
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  Speaker 2: the tech world?
• 3:52
  Speaker 1: Today's groundbreaking product can quickly become tomorrow's standard feature.
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  Speaker 2: For Dropbox, this means their cloud storage, which is once
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  Speaker 2: pretty revolutionary, is just one of many cloud storage services.
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  Speaker 1: Oh and b man, did I mention? They're now also
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  Speaker 1: competing with the behemoths like Google.
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  Speaker 2: And Microsoft actually did already mention and they have billions
• 4:10
  Speaker 2: of users collectively? Does you bo for Dropbox?
• 4:12
  Speaker 1: It's kind of like being the star of the show
• 4:14
  Speaker 1: only to find your way now part of an ensemble cast?
• 4:17
  Speaker 1: You know all about that.
• 4:18
  Speaker 2: The challenge for Dropbox has been staying ahead in a
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  Speaker 2: world where everyone else is catching up, and a.
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  Speaker 1: Man, Dropbox isn't the first product to become a common,
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  Speaker 1: undifferentiated feature in another company's app.
• 4:28
  Speaker 2: And what about Zoom? Now there's Google, meet Microsoft, teams
• 4:31
  Speaker 2: and a whole host of others in that ensemble cast.
• 4:33
  Speaker 1: For our third and final story, Reddit share price the
• 4:36
  Speaker 1: skyrocket over forty percent after its first ever profitable corner.
• 4:41
  Speaker 1: Pun you a forum for rants and very weird questions
• 4:44
  Speaker 1: could be this humongous? What is happening right here? All right?
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  Speaker 1: We know. Reddit is the social online forum that was
• 4:50
  Speaker 1: launched back in two thousand and five, and it's known
• 4:52
  Speaker 1: for its user led communities called subreddits.
• 4:55
  Speaker 2: And does boy it ain't small. In August of this year,
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  Speaker 2: Reddit became the ninth most visited website in the Solar System.
• 5:01
  Speaker 1: And they may now. Reddit share price has jumped a
• 5:03
  Speaker 1: wap in forty percent after it announced its first ever
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  Speaker 1: profitable quarter.
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  Speaker 2: Reddit saw its total revenue jump sixty percent to a
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  Speaker 2: cool and casual three hundred and forty eight million US dollars,
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  Speaker 2: and it brought in an adjusted operating profit of more
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  Speaker 2: than ninety four million US dollars compared to a loss
• 5:18
  Speaker 2: at this time last year. And jasboid. This is off
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  Speaker 2: the back of reddits investments in advertising technology to better
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  Speaker 2: compete with the big dogs like a Meta, as well
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  Speaker 2: as major deals they signed with Google and to open
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  Speaker 2: AI creddits, also allowing AI companies to train their models
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  Speaker 2: using reddits data in exchange for some serious Cashiola.
• 5:36
  Speaker 1: And be man, Well, that's a juicy revenue source for now.
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  Speaker 1: It's a little tricky to see how it plays out
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  Speaker 1: long term.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: A trendy revenue source today is only successful if it's
• 5:46
  Speaker 1: sustainable into the future.
• 5:47
  Speaker 2: Lately, we've been seeing many media companies entering deals with
• 5:51
  Speaker 2: AI companies.
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  Speaker 1: The simple exchange, we give you access to our content
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  Speaker 1: to train your AI models.
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  Speaker 2: And then you give us fund sized wielbarrows of cash.
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  Speaker 1: Think the Financial Times, News Corp, Time, Box Media, and
• 6:02
  Speaker 1: of course Reddit.
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  Speaker 2: And these deals are creating new revenue streams for media
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  Speaker 2: companies who are desperado to find new sources of revenue.
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  Speaker 2: News Corps deal with open Ai is reportedly worth two
• 6:11
  Speaker 2: hundred and fifty million US dollars over the next five years,
• 6:14
  Speaker 2: and Reddits ai deals are worth two hundred and three
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  Speaker 2: million US dollars. But the man Given how new AI
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  Speaker 2: is as a technology, there's not a lot of clarity
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  Speaker 2: on how this sort of revenue source will play out
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  Speaker 2: in the long term. AI companies need access to a
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  Speaker 2: variety of original contents to train their products.
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  Speaker 1: For now, but when those products become good enough and
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  Speaker 1: accurate enough, they might not need the source material.
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  Speaker 2: Anymore, which could create an existential crisis for many of
• 6:37
  Speaker 2: these media brands.
• 6:38
  Speaker 1: Box sam if you want to win a money and
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  Speaker 1: prove to everyone else in the Flux community that you
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  Speaker 1: on your notifications to win fifty bucks and kick off
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  Speaker 1: your weekend on a height.
• 6:52
  Speaker 2: Thanks for listening and we will see you on Monday.