Latest / What the Flux / Commbank's billion dollar boost | eToro pops on Nasdaq | Airbnb launches new services, including haircuts?!

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Commbank's billion dollar boost | eToro pops on Nasdaq | Airbnb launches new services, including haircuts?! · What the Flux

• 0:05
  Speaker 1: This is what the flux I'm brand, I'm justin And Friday,
• 0:08
  Speaker 1: the sixteenth of May, Josie Boy.
• 0:09
  Speaker 2: Australia's unemployment rate held steady and four point one percent
• 0:13
  Speaker 2: for March. And this is the last key piece of
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  Speaker 2: economic data before the RBA meets next Monday and Tuesday.
• 0:18
  Speaker 2: And Jessie Boy, despite all the uncertainty in the world,
• 0:22
  Speaker 2: all the big four banks here in Australia think that
• 0:24
  Speaker 2: we'll see a rate cut next week.
• 0:26
  Speaker 1: Brusting my fingers and motto's fox dam. If you've been
• 0:29
  Speaker 1: listening to the pod this week, you are in the
• 0:31
  Speaker 1: prime position to win fifty bucks today. All you've got
• 0:34
  Speaker 1: to do is make sure you're competing in quick sticks
• 0:36
  Speaker 1: against the rest of the flux Dam three questions. If
• 0:39
  Speaker 1: you're the first to answer them all correctly, fifty bucks
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  Speaker 1: is all yours. To make sure to download the Flux out,
• 0:43
  Speaker 1: turn your notifications on your chance to win today.
• 0:45
  Speaker 2: Three pure stories today, Juzzy Boy, let's do it for
• 0:48
  Speaker 2: our first combank has seen its cash profit jump to
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  Speaker 2: over two point six billion dollars for the quarter as
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  Speaker 2: it pushes hard into business banking.
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  Speaker 1: Big Yellow getting the bag once again being answer telling
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  Speaker 1: me all.
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  Speaker 2: So Commonwealth Bank is the Aussie bank with nearly sixteen
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  Speaker 2: million customers.
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  Speaker 1: ZACBA man, it's not only Australia's largest bank, but also
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  Speaker 1: the most valuable company on the ASX.
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  Speaker 2: So when Combank releases its quarterly results, everyone's ears prick up.
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  Speaker 1: And a man once again. Combank did not disappoint as
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  Speaker 1: it announced a two point six billion dollar cash profit
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  Speaker 1: for just the March quarter alone.
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  Speaker 2: Yeah, Combank could purchase nine entertainment, which is one quarter's
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  Speaker 2: cash profit.
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  Speaker 1: Wow, and that's a six percent rise on the previous quarter.
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  Speaker 2: And while Combank typically dominates the home loan sector, it's
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  Speaker 2: also been picking up in the business banking space too.
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  Speaker 1: Combank saw its business loans jump by more than nine percent,
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  Speaker 1: which is a lot faster than the growth in other banks.
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  Speaker 2: But its secret source when it comes to continuing to
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  Speaker 2: grow is also in the highly competitive and highly lucrative
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  Speaker 2: home loan space.
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  Speaker 1: Yep. And while most banks lean on mortgage brokers, CBA
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  Speaker 1: is focusing on growing its own home loan book through
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  Speaker 1: its own channels.
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  Speaker 2: That'd be its own website, its own branches. So b man,
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  Speaker 2: what is the key learning here? While mortgage broking brings
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  Speaker 2: volume direct channels bring dem profits.
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  Speaker 1: Get this, be man. Mortgage brokers were responsible for nearly
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  Speaker 1: seventy five percent of all new home loans in the
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  Speaker 1: September twenty twenty four quarter.
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  Speaker 2: But Combank is bucking the trend and making a bank
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  Speaker 2: while doing it.
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  Speaker 1: Yeah. Combank reported that sixty eight percent of its new
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  Speaker 1: mortgages came through its own proprietary channels over the past quarter.
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  Speaker 2: And Jazi boy mortgages that come directly from proprietary channels
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  Speaker 2: are much more profitable.
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  Speaker 1: In fact, broker originated loans are reported to be around
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  Speaker 1: twenty to thirty percent less profitable according to Kombank's financial results.
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  Speaker 2: That's because of the upfront commissions and trail commissions given
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  Speaker 2: to brokers on every loan written.
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  Speaker 1: So this strategic shift allows Combank to have greater control
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  Speaker 1: over the customer experience.
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  Speaker 2: And potentially improve their profitability too.
• 2:39
  Speaker 1: For our second story, e Toro, the shared trading platform,
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  Speaker 1: has popped more than forty percent on its share market
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  Speaker 1: debut after investors were scrambling to get a slice.
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  Speaker 2: So now investors are buying and selling e Toro stock
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  Speaker 2: on the e Toro stock trading platform. Very meta, tell
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  Speaker 2: me more?
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  Speaker 1: Okay, so e Toro is the Israeli trading and investment
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  Speaker 1: platform that was founded in two thousand and seven and it.
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  Speaker 2: Has grown to over thirty eight million registered users around
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  Speaker 2: the world.
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  Speaker 1: Largely off the back of its very heavy marketing.
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  Speaker 2: YEP it ran a heap of ads with Alec Baldwin,
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  Speaker 2: as well as sponsoring five English Premier League clubs.
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  Speaker 1: Five Bundeslegger clubs in Germany and even Rugby Australia.
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  Speaker 2: But it's best known for letting its users trade and
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  Speaker 2: follow others when it comes to their investments in stocks
• 3:20
  Speaker 2: and crypto and they man.
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  Speaker 1: On Wednesday, Etro listed on the Nasdaq and it shares
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  Speaker 1: absolutely pop YEP.
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  Speaker 2: Its shares were priced at fifty two bucks but jumped
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  Speaker 2: to over seventy four bucks at one point, which.
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  Speaker 1: Was a forty two percent gain in the same day.
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  Speaker 2: And duzzy boy, that's because the IPO was oversubscribed by
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  Speaker 2: more than twenty times.
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  Speaker 1: That's like throwing a party for fifty people and having
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  Speaker 1: one thousand people trying to squeeze in.
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  Speaker 2: And e Toro's debut was a very good sign for
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  Speaker 2: the potential of other companies looking to IPO in the
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  Speaker 2: not too distant future.
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  Speaker 1: So what is the key learning here?
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  Speaker 2: A key signal of IPO success is over subscription.
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  Speaker 1: That's when demand for shares exceeds the number of shares
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  Speaker 1: that are offered.
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  Speaker 2: In e Toro's case, the demand was so high that
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  Speaker 2: they increased the number of shares offered from ten million
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  Speaker 2: to nearly twelve million shares.
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  Speaker 1: And despite that, the demand was reportedly still twenty times that.
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  Speaker 2: The good thing for etro is that over subscription can
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  Speaker 2: create high and as.
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  Speaker 1: A result, it can drive the share price well above
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  Speaker 1: the IPO price on day one.
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  Speaker 2: But jaziboy hot debut doesn't always mean long term outperformance.
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  Speaker 1: In fact, be man let's wine back to twenty twenty
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  Speaker 1: one peak lockdowns, peak meme stocks, peak money printing.
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  Speaker 2: That year, a record three hundred and ninety seven companies
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  Speaker 2: went public on the Nasdaq, but most.
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  Speaker 1: Of the class of twenty twenty one has performed very
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  Speaker 1: badly in the aftermarket.
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  Speaker 2: Yep, only seventeen percent of these public companies and now
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  Speaker 2: trading above their IPO offer prices, and.
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  Speaker 1: Since then private companies have become a little gun shy
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  Speaker 1: to list on the public market.
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  Speaker 2: So e Toro could be a sign of positive IPOs
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  Speaker 2: to come.
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  Speaker 1: For our third and final story. Airbnb now wants to
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  Speaker 1: book your personal trainer, you spart a, and a celeb
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  Speaker 1: experience because they want to expand outside of just holiday homes.
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  Speaker 2: From spare beds to spark treatments. What is going on here?
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  Speaker 1: Airbb was founded in two thousand and eight in San Francisco,
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  Speaker 1: back when the my idea of sleeping in someone else's
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  Speaker 1: place sounded a bit more like a horror film.
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  Speaker 2: But since then, Jessie Boy it has hosted over two
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  Speaker 2: billion guest arrivals in.
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  Speaker 1: Runt of the mill apartments, but also some really wacky
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  Speaker 1: properties like a yellow submarine, a windmill, a snow igloo.
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  Speaker 2: But listing properties online is so last decade.
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  Speaker 1: So now Airbbb's launched a redesigned app, so it's less
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  Speaker 1: accommodation and more like the everything traveler.
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  Speaker 2: You can now order a spa tramp, book a personal trainer,
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  Speaker 2: hire a chef through the app.
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  Speaker 1: Man. It ain't no coincidence that airbb is pushing deeper
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  Speaker 1: into the experience of space.
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  Speaker 2: Yep, that's because it warned a couple of weeks ago
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  Speaker 2: of slowing bookings in the US.
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  Speaker 1: Largely off the back of on again off again tariffs.
• 5:38
  Speaker 2: So Josey Boy. The idea is that these new offerings
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  Speaker 2: will appeal to travelers who want more unique and personalized holidays.
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  Speaker 1: And not just a place to sleep.
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  Speaker 2: All part of Airbnb's plan to grow its share of wallet.
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  Speaker 2: So what is the key learning ears Share of wallet
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  Speaker 2: refers to how much of a consumer's total spending in
• 5:54
  Speaker 2: a category goes to one company.
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  Speaker 1: When it comes to travel, your wallet gets sliced up
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  Speaker 1: like a pizza.
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  Speaker 2: It's accommodation, food, activities, transport, and.
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  Speaker 1: Traditionally Airbnb only captured the accommodation.
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  Speaker 2: Slides, and in twenty sixteen, when it launched the first
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  Speaker 2: version of Experiences, it began to tap into this and
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  Speaker 2: it kept growing and growing.
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  Speaker 1: And so with the launch of the new Services feature
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  Speaker 1: and growth of Airbnb Experiences, it's trying to win a
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  Speaker 1: larger chunk of the holiday budget.
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  Speaker 2: The idea is that customers already trust Airbnb for accommodation,
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  Speaker 2: so they'll be willing to spend more on other interesting
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  Speaker 2: services too.
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  Speaker 1: And be man. Given Airbnb's net income fell nearly forty
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  Speaker 1: two percent in the most recent quarter, it needs to
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  Speaker 1: find some new growth channels, so.
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  Speaker 2: It's hoping that services and experiences might just be that.
• 6:37
  Speaker 1: But Sam, if you're listening to the pod on your phone,
• 6:39
  Speaker 1: which you most likely are, make sure to jump into
• 6:41
  Speaker 1: your Flux app, turn your notifications on, and get ready
• 6:43
  Speaker 1: for that notification coming today to win fifty bucks could
• 6:46
  Speaker 1: be the greatest start of the weekend you've ever had.
• 6:48
  Speaker 1: It's all in our weekly game Quick Sticks, which drops today.
• 6:51
  Speaker 2: Thanks for listening and we'll see you on Monday.