Latest / What the Flux / Myer's share price plummet | Meta's AI wingman for dating | Porsche hits the break on EVs

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Myer's share price plummet | Meta's AI wingman for dating | Porsche hits the break on EVs · What the Flux

• 0:05
  Speaker 1: This is what the Flux. I'm brat and I'm justin
• 0:07
  Speaker 1: and it's Wednesday. They're twenty fourth of September. Does it boit?
• 0:10
  Speaker 2: We spoke the other week about the federal government's investment
• 0:12
  Speaker 2: in Side Quantum. Well now they're dipping into the federal
• 0:16
  Speaker 2: purse strings once again. This time the government has invested
• 0:18
  Speaker 2: in Australia's largest semiconductor company, Morse Micro, this time a
• 0:22
  Speaker 2: lazy thirty five million bukarooneys.
• 0:24
  Speaker 1: Just pull it out of the purse strings. Fan. Have
• 0:26
  Speaker 1: you ever heard of the phrase job hugging? I recently
• 0:30
  Speaker 1: have job huggings where employees are choosing to stay in
• 0:32
  Speaker 1: their current positions instead of shopping around because they're earning
• 0:35
  Speaker 1: more by staying poor. Very very interesting study, and we've
• 0:38
  Speaker 1: done a deep dive in the Flux app speaking about
• 0:40
  Speaker 1: job hugging versus job hopping. Fucks app. If you're thinking
• 0:43
  Speaker 1: about your job at the moment, make sure you download.
• 0:45
  Speaker 2: The Flux app and take a read of the article
• 0:47
  Speaker 2: three monstrous stories today, Dozy boy, let's do it for
• 0:50
  Speaker 2: our first. Maya's share price has fallen twenty five percent
• 0:54
  Speaker 2: after its poor earnings results shocked its investors.
• 0:58
  Speaker 1: Maya's profit plunges and it's got investors bailing, So tell
• 1:01
  Speaker 1: me more, be Man. So.
• 1:02
  Speaker 2: Maya is an Australian department store founded in nineteen hundred
• 1:05
  Speaker 2: that sells everything from clothing and beauty to homewear in electronics.
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  Speaker 1: And last year it made a near billion dollar acquisition
• 1:12
  Speaker 1: of apparel.
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  Speaker 2: Brands aka the Wardrobe behind Just Jeans, JJ's, Portman's, Your Dotties,
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  Speaker 2: Your Jackie, Ease.
• 1:19
  Speaker 1: All the Finer, Yep, and be Man. This deal was
• 1:22
  Speaker 1: made to boost Meyer's profit.
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  Speaker 2: So despite the market's initial positive response to the acquisition,
• 1:27
  Speaker 2: the glamour has worn off fast.
• 1:28
  Speaker 1: Yeah. Myers warned that its net profit has fallen thirty
• 1:31
  Speaker 1: percent compared to last year, and they reckon It's been
• 1:33
  Speaker 1: a tough environment for retail brands with slow consumer spending.
• 1:36
  Speaker 1: Plus they've also spent a lot of coin on their
• 1:39
  Speaker 1: new Melbourne distribution center, as well as installing new security
• 1:42
  Speaker 1: systems at all its retail stores and joy Boy.
• 1:45
  Speaker 2: It doesn't help that the newly acquired apparel brands so
• 1:47
  Speaker 2: a drop in sales in its first six months under Maya.
• 1:50
  Speaker 1: But Beman Meis execs claim that f I twenty five
• 1:53
  Speaker 1: was just a transition year. Yeah, they reckon.
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  Speaker 2: This should be considered a free kick of a year
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  Speaker 2: because it's just setting the business up for our future growth.
• 2:02
  Speaker 1: So what is the key learning year?
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  Speaker 2: Big ticket investments are always tricky to sell to investors.
• 2:07
  Speaker 1: The costs hit immediately, but the payoff may not show
• 2:10
  Speaker 1: up for years.
• 2:10
  Speaker 2: But sometimes businesses need to cop short term losses and
• 2:13
  Speaker 2: bit of pain in order to position themselves for that
• 2:16
  Speaker 2: long term success and be man.
• 2:17
  Speaker 1: That is the bet that Maya made when it's spent
• 2:19
  Speaker 1: heavily on a billion dollar acquisition and upgraded as supply chain.
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  Speaker 2: The problem is if execution isn't done well, then investor
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  Speaker 2: confidence can evaporate very quickly.
• 2:28
  Speaker 1: Yeah, Maya's distribution center has already faced delays and extra costs.
• 2:32
  Speaker 2: In fact, the operational problems at the new distribution center
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  Speaker 2: cost Maya about twelve million bucks in earnings before interest
• 2:38
  Speaker 2: in tax for the first half of FY twenty five,
• 2:41
  Speaker 2: and one.
• 2:41
  Speaker 1: Of its new brands, Dotty, suffered a near nine percent
• 2:44
  Speaker 1: dive in sales over the second half alone.
• 2:46
  Speaker 2: So companies like Maya need to strike a careful balancing
• 2:49
  Speaker 2: act between keeping investors happy while still growing the profitability
• 2:53
  Speaker 2: or else it's.
• 2:54
  Speaker 1: Game over before the makeover even begins.
• 2:57
  Speaker 2: For our second story, Facebook is trying to cure dating
• 3:01
  Speaker 2: swipe fatigue within new AI dating assistant.
• 3:04
  Speaker 1: Aikopered Inda House well Man Well.
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  Speaker 2: Facebook, which is obviously owned by Meta, launched Facebook Dating
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  Speaker 2: in twenty nineteen, has a bit of a rival to
• 3:12
  Speaker 2: Tinder and Bumble.
• 3:13
  Speaker 1: And be Man. This has been embedded inside the Facebook gap.
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  Speaker 2: Because nothing says romance like meeting your soulmate next to
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  Speaker 2: a photo of your third cousin's birthday barbecue.
• 3:21
  Speaker 1: O true and b Man. Meta claims the hundreds of
• 3:24
  Speaker 1: thousands of eighteen to twenty nine year olds are creating
• 3:26
  Speaker 1: Facebook dating profiles every single month in North America.
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  Speaker 2: But now Meta has unveiled an AI dating assistant that
• 3:33
  Speaker 2: supposedly helps users find their matches.
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  Speaker 1: Yeah, you could use a prompt like find me a
• 3:37
  Speaker 1: Brooklyn girl in tear and metas AI will play with man.
• 3:42
  Speaker 2: And not only is Meta's AI becoming your local matchmaker,
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  Speaker 2: They've also rolled out an auto match feature yeap it
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  Speaker 2: basically Tinder meets a blind Date and Juzzy Boy. While
• 3:52
  Speaker 2: there are no plans to bring this to Australian singletons
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  Speaker 2: right now, if successful in the US.
• 3:57
  Speaker 1: You just never know, especially because Facebook already had what's
• 4:00
  Speaker 1: the network effects to make this work?
• 4:02
  Speaker 2: Very true? So what is the key learning here?
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  Speaker 1: Dating apps live and die by network effects.
• 4:06
  Speaker 2: The more people that join, the better the app works.
• 4:09
  Speaker 2: More users attract more users. But for a new company
• 4:13
  Speaker 2: breaking into a market that's dominated by Tinder or Bumble
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  Speaker 2: or Hinge, that's really.
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  Speaker 1: Hard, yeah, because those platforms have already built strong network effects.
• 4:20
  Speaker 2: But Facebook can leverage metas billions of existing users to
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  Speaker 2: shortcut the process.
• 4:25
  Speaker 1: And this ate the first time that Facebook's leverage its
• 4:27
  Speaker 1: existing distribution to scale into a new vertical.
• 4:30
  Speaker 2: Remember when selling secondhand goods used to be the domain
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  Speaker 2: of Trading Post or gum tree.
• 4:35
  Speaker 1: Do and then Facebook Marketplace came along and went bang yep.
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  Speaker 2: And now more than one in three people on Facebook
• 4:41
  Speaker 2: in the US use Marketplace each month.
• 4:43
  Speaker 1: So Facebook's hoping it can become relevant with the younger
• 4:46
  Speaker 1: generation again through boltons to its very core and dated offering.
• 4:50
  Speaker 2: For our third and final story, Porsche has just issued
• 4:55
  Speaker 2: its fourth profit warning this year as it puts its
• 4:57
  Speaker 2: electric vehicle plans on.
• 4:58
  Speaker 1: Ice, slamming the brain on electric dreams ben, So what
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  Speaker 1: is going on here.
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  Speaker 2: So Porsche is the German luxury car maker that's named
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  Speaker 2: after the founder of the company, Ferdinand A. Porsche in
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  Speaker 2: nineteen thirty.
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  Speaker 1: Porsche is famous for the kN and for the galloping
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  Speaker 1: horse mascot and Juzi Boy.
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  Speaker 2: By August twenty twelve, Volkswagen Group owned one hundred percent
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  Speaker 2: of Porsche. Until twenty twenty two.
• 5:18
  Speaker 1: That was when Porsche listed on the Frankfurt Stock Exchange
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  Speaker 1: and it was the biggest IPO in over a decade.
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  Speaker 2: But now Porsche has issued its fourth profit warning just this.
• 5:26
  Speaker 1: Year yep it warned that operating profits were expected to
• 5:29
  Speaker 1: face a one point eight billion euro hit.
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  Speaker 2: The reason is due to weak demand in China for
• 5:34
  Speaker 2: luxury cars, as well as those pesky tariffs in the US.
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  Speaker 1: Which is Porsche's largest market.
• 5:40
  Speaker 2: So now to stem the bleeding, Porsche's shelves plans for
• 5:42
  Speaker 2: a luxury EV SUV and Juzy Boy. Its share price
• 5:45
  Speaker 2: has skidded so far that Porsche will drop out of
• 5:48
  Speaker 2: Germany's DAX benchmark index.
• 5:51
  Speaker 1: So what is the key learning here?
• 5:52
  Speaker 2: Being part of a benchmark index isn't just a vanity title.
• 5:56
  Speaker 2: It can be a golden ticket to investment.
• 5:58
  Speaker 1: Dollars. Yeah. When a company and an index based on
• 6:01
  Speaker 1: its market size, it means that many passive funds and
• 6:03
  Speaker 1: ETFs the track at index need to acquire a shares.
• 6:06
  Speaker 2: And this can often drive demand and tends to push
• 6:09
  Speaker 2: the company's shares price upward yep.
• 6:10
  Speaker 1: And on the flip side, if a company leaves an
• 6:12
  Speaker 1: index like Porsche, those same investment funds need to sell
• 6:15
  Speaker 1: the share which can create downward pressure.
• 6:17
  Speaker 2: Interestingly, and McKinsey study found that the stock price bump
• 6:20
  Speaker 2: at inclusion is real, but mostly it's temporary.
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  Speaker 1: Y The effect of this spike or drop tends to
• 6:25
  Speaker 1: level out within about two months after the change.
• 6:28
  Speaker 2: For Porsche, losing its DAK spot might be a short
• 6:31
  Speaker 2: term financial stepback, but it's even more of a symbolic
• 6:34
  Speaker 2: fall from grace.
• 6:34
  Speaker 1: Fluxam Despite what you might think, fifteen to twenty four
• 6:37
  Speaker 1: year old Aussies are actually a lot less likely to
• 6:40
  Speaker 1: job hoped in the same age group ten years ago.
• 6:43
  Speaker 1: I'm calling it. Job hugging is the newer job hopping
• 6:45
  Speaker 1: and if you want to know why, Flexamma, make sure
• 6:47
  Speaker 1: you download the Flux app for a deep dive into
• 6:49
  Speaker 1: job hugging.
• 6:50
  Speaker 2: Thanks for listening. And we'll see you on Friday.