Latest / What the Flux / Domain's mega-takeover offer | GyG's international concerns | Apple's cheaper iPhone strategy

Transcript

Domain's mega-takeover offer | GyG's international concerns | Apple's cheaper iPhone strategy · What the Flux

• 0:05
  Speaker 1: This is what the flucks. I'm Brett and it's fundated
• 0:08
  Speaker 1: twenty fourth and Debruary, Doze Boy.
• 0:09
  Speaker 2: Diamonds might be forever, but diamond prices are not. The
• 0:13
  Speaker 2: price of a single carrot diamond has fallen by thirty
• 0:16
  Speaker 2: seven percent over the past six years as demand for
• 0:19
  Speaker 2: lab grown diamonds.
• 0:20
  Speaker 1: Continues to skyrocke.
• 0:22
  Speaker 2: So the next person that tells you that diamonds are
• 0:25
  Speaker 2: a good investment of the long.
• 0:26
  Speaker 1: Term, I'd recommend thinking again. Fox Am.
• 0:29
  Speaker 3: Did you know every single day the banks does not
• 0:31
  Speaker 3: pass on the cash right cart they make an extra
• 0:34
  Speaker 3: ten million dollars.
• 0:35
  Speaker 1: Wow.
• 0:36
  Speaker 3: We run through why they delayed, how long they normally delayed,
• 0:38
  Speaker 3: and what they've done in the past. So if you're
• 0:40
  Speaker 3: a homeown at or looking to buy home, this is
• 0:42
  Speaker 3: the perfect place to understand the ins and out of
• 0:44
  Speaker 3: how banks work.
• 0:45
  Speaker 1: Make sure to check it out in the Flux app.
• 0:46
  Speaker 2: Three Understandable stories today, Dozzy Boy, let's do it for
• 0:50
  Speaker 2: our first domain, the Digital Property Marketplace, has seen its
• 0:54
  Speaker 2: share price skyrocket thirty seven percent after it received a
• 0:58
  Speaker 2: takeover bid by.
• 0:59
  Speaker 3: A US domain been lagging aria for yongksb Man. So
• 1:02
  Speaker 3: this could be exactly what the doctor ordered, so tell
• 1:05
  Speaker 3: me more.
• 1:05
  Speaker 2: Well, Domain is the real estate marketplace actually started in
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  Speaker 2: nineteen ninety six, and get this, it was a lift
• 1:11
  Speaker 2: out part of Fairfax Newspapers. And in nineteen ninety nine,
• 1:15
  Speaker 2: Domain's first website with digital property listings went live. But
• 1:18
  Speaker 2: let's be real here, be Man.
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  Speaker 3: Domain has always played second fiddle to real estate dot
• 1:22
  Speaker 3: Com dota you in the real estate industry.
• 1:24
  Speaker 2: Yep, real estate dot com dot U has forty six
• 1:26
  Speaker 2: percent more monthly unique visitors than Domain.
• 1:29
  Speaker 3: In fact, well, Aria Group's share price has more than
• 1:32
  Speaker 3: doubled in the past five years, Domains has pretty much flatlined.
• 1:35
  Speaker 2: But jose wait, last Thursday, some mystery buyer brought up
• 1:39
  Speaker 2: a twenty percent steak in Domain.
• 1:41
  Speaker 1: Aka the Fixer Rupper, And on.
• 1:44
  Speaker 2: Friday it came out that the mystery buyer was co Star,
• 1:47
  Speaker 2: which is a company claiming to be the world's largest
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  Speaker 2: real estate information company.
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  Speaker 3: Interesting, Beman, and they've announced plans to submit a takeover bid,
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  Speaker 3: valuing Domain at two point seven billion dollars.
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  Speaker 2: Which by my calculations is more than forty two percent
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  Speaker 2: preme on its average share price from the past month.
• 2:02
  Speaker 3: And be Man, no surprise here, but Aria Group share
• 2:05
  Speaker 3: price film more than ten percent on this.
• 2:07
  Speaker 1: News huge, So what is the key learning here?
• 2:09
  Speaker 3: Market leaders can never allow themselves to get comfortable, no
• 2:12
  Speaker 3: matter how big they are.
• 2:13
  Speaker 1: When a casht up competitor enters the scene, it can
• 2:16
  Speaker 1: really change everything.
• 2:17
  Speaker 3: Yeah, Coastar is a global behemoth, it's worth fifty billion US.
• 2:21
  Speaker 1: Dollars and interestingly juzzy boy.
• 2:23
  Speaker 2: Last month, Aria Group CEO shared his secret for smashing Domain.
• 2:27
  Speaker 1: Yeah.
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  Speaker 3: He said they out invested Domain on everything from tech
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  Speaker 3: to product development to.
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  Speaker 1: People, but he's heard at all changes.
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  Speaker 3: Yeah, because with a potential new overlord, Domain could actually
• 2:36
  Speaker 3: afford to drop prices, pump millions into marketing, and invest
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  Speaker 3: heavily into tech.
• 2:40
  Speaker 2: And this is a blueprint that Costar has tried and
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  Speaker 2: tested around the world already.
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  Speaker 3: For example, it's spent one billion US dollars to take
• 2:48
  Speaker 3: its homes dot com portal from number six in the
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  Speaker 3: US market to number.
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  Speaker 1: Two, and it also did the same in the UK.
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  Speaker 2: It acquired the second place property marketplace named on the Move,
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  Speaker 2: and five x it's marketing spend so b man it.
• 3:00
  Speaker 3: This still goes through Oria Group and its investors might
• 3:03
  Speaker 3: still have the same competitor, but in brand you Ama.
• 3:06
  Speaker 1: For our second story.
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  Speaker 2: Guzman Egomez, the biggest IPO listing of twenty twenty four.
• 3:11
  Speaker 1: Mind You, says it's expecting to beat.
• 3:13
  Speaker 2: Its prospectus forecast this financial year, but share price got
• 3:16
  Speaker 2: whacked for one big reason.
• 3:17
  Speaker 3: It's a very spicy jalapeno to swallow for GAG investors,
• 3:21
  Speaker 3: So tell me more well.
• 3:22
  Speaker 2: Guzmanigomez opened its first store in Sydney in two thousand
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  Speaker 2: and six as a Mexican fast food chain.
• 3:27
  Speaker 1: The idea was to make fast food that was actually good.
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  Speaker 2: Quality, and since then it's grown to operate over two
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  Speaker 2: hundred and thirty stores in Australia, Japan, Singapore and the US.
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  Speaker 3: And last year b Man Guzmigomes listed on the ASX
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  Speaker 3: at a market cap of two point two billion baccarinis.
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  Speaker 2: But since then it's share price is more than doubled.
• 3:44
  Speaker 2: Only people are willing to bet big on burritos. Be
• 3:46
  Speaker 2: Man and now Gyg has said it's on track to
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  Speaker 2: beat its prospectus profit forecast this financial year.
• 3:52
  Speaker 1: That's thanks to more Brecky sales and more delivery orders
• 3:55
  Speaker 1: as well. That's good news for these new burrito kings.
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  Speaker 3: It is, but its share price actually more than ten
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  Speaker 3: percent on the news.
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  Speaker 1: Why do you reckon it happened?
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  Speaker 3: Juzi boy, Well, investors didn't really care about those Australian
• 4:06
  Speaker 3: results because it's US stores weren't performing so well.
• 4:09
  Speaker 1: Oh so what is the key learning here?
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  Speaker 2: A significant part of a company's valuation is often tied
• 4:14
  Speaker 2: to its future growth prospect rather than its current earnings.
• 4:17
  Speaker 2: For GYG, a substantial portion of its share price reflects
• 4:21
  Speaker 2: investor expectations when it comes to a successful international expansion,
• 4:25
  Speaker 2: particularly in the very lucrative US market. But the US
• 4:28
  Speaker 2: franchise has flopped. Its US network sales dropped by twelve
• 4:32
  Speaker 2: point seven percent.
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  Speaker 1: And the losses they're getting bigger as well.
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  Speaker 2: And investors a quick to react when growth markets fail
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  Speaker 2: to deliver juzzy boy like the US so Beman. For GYG,
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  Speaker 2: turning around its US operations is crucial, not just for
• 4:44
  Speaker 2: revenue growth, but for maintaining.
• 4:46
  Speaker 1: Its high valuation.
• 4:47
  Speaker 3: For our third and final story, Apple has released its
• 4:50
  Speaker 3: new iPhone sixteen E last week as it struggles to
• 4:54
  Speaker 3: compete in the smartphone market against cheaper competitors.
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  Speaker 1: Can you smell that, jazzy boy? I tell you what
• 4:59
  Speaker 1: it smells like. Apple's desperation right now, So tell me
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  Speaker 1: what is going on here?
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  Speaker 2: Okay?
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  Speaker 3: So Apple is the most valuable brand in the whole
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  Speaker 3: wide world with its slick designs, it's slick stores, and
• 5:08
  Speaker 3: it's fancy products.
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  Speaker 2: From the iPhone to MacBooks, Apple watched air pods. It's
• 5:13
  Speaker 2: got many customers wrap around its trillion dollar fingers.
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  Speaker 1: Yeah, but b man, Apple's just done something very uncharacteristic.
• 5:19
  Speaker 1: What's that juzzy boy?
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  Speaker 2: Well, normally in its annual Nerdfest, which takes place in September,
• 5:23
  Speaker 2: CEO Tim Cook releases its latest products. But late last week,
• 5:27
  Speaker 2: which was in February, Apple announced the launch of a
• 5:30
  Speaker 2: new cheaper iPhone, the iPhone sixteen E and be Man.
• 5:34
  Speaker 2: This one's got most of the software features in the
• 5:36
  Speaker 2: iPhone sixteen, but at a much cheaper price point and jazzyboy.
• 5:39
  Speaker 2: While Apple claims this has always been part of its plan,
• 5:42
  Speaker 2: it might just be a bit of a hail mary
• 5:44
  Speaker 2: after its iPhone sixteen didn't really drive upgrades during the
• 5:48
  Speaker 2: holiday quarter.
• 5:49
  Speaker 1: So what is the key learning here?
• 5:51
  Speaker 2: In the battle for market share, sometimes even premium brands
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  Speaker 2: need a more accessible priced hack.
• 5:56
  Speaker 1: Get this, be Man.
• 5:57
  Speaker 3: Apple's iPhone sales declined in the December quarter by one
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  Speaker 3: percent compared to the previous year.
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  Speaker 2: Compare that to the expectations of a jump of one
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  Speaker 2: point four percent.
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  Speaker 3: And this new iPhone was meant to be the Bee's
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  Speaker 3: knees with all its sexy Apple Intelligence AI features.
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  Speaker 2: But still not enough to convince customers to take the
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  Speaker 2: nineteen hundred dollars plunge.
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  Speaker 3: You see, b Man Apples not only had a slow
• 6:17
  Speaker 3: December quarter, but it's also losing market share to its
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  Speaker 3: cheap arrivals.
• 6:21
  Speaker 2: Apple last one point five percent market share, while cheaper
• 6:24
  Speaker 2: Chinese brands like Shaomi and Vivo scooped up and be Man.
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  Speaker 1: It's a bit of a delicate ballaced Apple.
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  Speaker 3: If they stay two premium, they risk losing customers to
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  Speaker 3: cheaper competitors, and of course, if they go too cheap,
• 6:35
  Speaker 3: they dilute the brand's exclusivity flex amp. Did you know
• 6:38
  Speaker 3: only one third of banks and lenders have passed on
• 6:41
  Speaker 3: the right cut already? We cover everything in the Flux
• 6:43
  Speaker 3: app who's passed on the right cut, when they'll be
• 6:45
  Speaker 3: passing it on, and how much money banks are making
• 6:47
  Speaker 3: right now in the interim period. If you want to
• 6:49
  Speaker 3: check it out, make sure to download the Flux app
• 6:51
  Speaker 3: and read all about the.
• 6:52
  Speaker 1: Cash rate cuts. Thanks for listening, and we'll see you
• 6:54
  Speaker 1: on Wednesday.