Latest / What the Flux / Nine's shares plummet | The Good Guys go bad | Adobe fighting back against Canva

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Nine's shares plummet | The Good Guys go bad | Adobe fighting back against Canva · What the Flux

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  Speaker 1: This is what the Flux I'm brandan, I'm justin fun.
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  Speaker 1: Dated fifteenth of September.
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  Speaker 2: Jessie, Wait, what are the odds of Mark Zuckerberg sewing Meta?
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  Speaker 2: Well you would think zero, but it actually happened. Not
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  Speaker 2: that Zuckerberg. This one's a lawyer whose firm's Facebook page
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  Speaker 2: has been shut down five times for impersonating the part
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  Speaker 2: Man part Robot CEO. And now this Mark Zuckerberg is
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  Speaker 2: suing Meta and he's had the name longer than the
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  Speaker 2: other Zuckerberg.
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  Speaker 1: Lots of Zuckerberg's going on b Man, but I don't
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  Speaker 1: think he takes part man part Robert does the cleanan's butt. Sam.
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  Speaker 1: If you're always looking at your bank out wondering where
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  Speaker 1: your money goes, there is one way to track it,
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  Speaker 1: and it is in the Flux Budgeting Tool. It tracks
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  Speaker 1: all your expenses, all of your savings, and categorizes where
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  Speaker 1: your money's gone for the last thirty days and twelve months.
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  Speaker 1: So if you want to see where your money's going
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  Speaker 1: and how you can save more, make sure to download
• 0:53
  Speaker 1: the plucks app and check out the Budgeting Talk.
• 0:55
  Speaker 2: Three Lofty stories today, Josie, boy, let's do it for
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  Speaker 2: our first Entertainment saw it shares plunged thirty six percent
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  Speaker 2: in a single day last week. But don't panic, juzzy boy.
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  Speaker 2: There is a reason.
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  Speaker 1: Must be because millionaire hot seats no longer on thereby
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  Speaker 1: man tell me wrong.
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  Speaker 2: Nine Entertainment is one of Australia's major media companies, running
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  Speaker 2: TV networks like Channel nine and nine Honey.
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  Speaker 1: Also newspapers like The Sydney Morning Herald, The Age, the
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  Speaker 1: Australian Financial Review. Not to forget, it also owns the
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  Speaker 1: streaming platform stan.
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  Speaker 2: Lee Yes Fun Fact. Nine Entertainment also owned a sixty
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  Speaker 2: percent stake in Domain, the property listing platform.
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  Speaker 1: That was until it recently cashed out with a one
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  Speaker 1: point four billion dollar sale when Domain was sold to
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  Speaker 1: the US real estate platform Costar.
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  Speaker 2: The Jazzy Boy. While nine was flush with this Domain cash,
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  Speaker 2: it chose not to invest most of the cash from
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  Speaker 2: the Domain sale now.
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  Speaker 1: Instead, it decided to return seven hundred and eighty mil
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  Speaker 1: two investors, or roughly forty nine cents per share.
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  Speaker 2: That's on top of the four cents per share dividend
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  Speaker 2: it already promised and.
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  Speaker 1: Be man Late last week, Nine Entertainment shares plummeted thirty
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  Speaker 1: six percent in a single day. But it wasn't because
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  Speaker 1: of any big earnings down.
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  Speaker 2: No, no, no, no. It was because its shares had
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  Speaker 2: gone X dividend.
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  Speaker 1: So what is the key learning year?
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  Speaker 2: When companies pay dividends, there's a key date to know,
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  Speaker 2: the ex dividend date.
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  Speaker 1: The X dividend date is the day when a share
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  Speaker 1: starts trading without the right to its next dividend payment.
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  Speaker 2: So as an investor, it means that if you buy
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  Speaker 2: shares before this date, you're entitled to the dividend, but
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  Speaker 2: if you buy.
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  Speaker 1: The shares on or after the date, then you miss out.
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  Speaker 2: So juzzy boy. Because of this, a company share price
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  Speaker 2: usually drops by roughly the same amount as the dividend
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  Speaker 2: being paid.
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  Speaker 1: For example, if the company declares a one dollar dividend,
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  Speaker 1: its share price will generally fall by that one dollar
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  Speaker 1: when it goes ext dividend.
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  Speaker 2: For nine Entertainment, It's fifty three cent dividend payment to
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  Speaker 2: investors went ex dividend.
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  Speaker 1: Last week, which is why it shares dropped by around
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  Speaker 1: fifty six percent by the end of the X dividend date.
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  Speaker 2: So juzzy boy. This drop was not actually tied to
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  Speaker 2: any updates in nine's performance.
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  Speaker 1: YEP and nine Entertainment was one of more than thirty
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  Speaker 1: five companies to go x dividend last week.
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  Speaker 2: But Dividend had a monster special dividend from the domain sale.
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  Speaker 2: That's why it dropped so much more than other company.
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  Speaker 1: For our second story, the Good Guys has been slapped
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  Speaker 1: with a thirteen and a half million dollar fine the
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  Speaker 1: misleading customers with dodgy store credit promos.
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  Speaker 2: Come in and will slasher store credits? Tell me more?
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  Speaker 2: Jusey boy, you'd seen that one?
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  Speaker 1: Be man now. The Good Guys started in Melbourne back
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  Speaker 1: in nineteen fifty two under the name Mighty Mewers.
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  Speaker 2: Yep. It sells white goods like fridges and washing machines,
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  Speaker 2: your air frys, your TVs, even dare I say bar bq.
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  Speaker 2: It was acquired by Jbhi fi E in twenty sixteen
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  Speaker 2: for eight hundred and seventy million bucks and be man.
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  Speaker 1: Between July twenty nineteen and August twenty twenty three, the
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  Speaker 1: Good Guys ran one hundred and sixteen promotions where they
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  Speaker 1: offered customers store credit.
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  Speaker 2: Which was branded as store cash.
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  Speaker 1: This store cash ranged from ten dollars to one thousand
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  Speaker 1: dollars depending on what you bought or how you paid.
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  Speaker 2: But his the thing jusi boy. The expiring period was
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  Speaker 2: often buried in the fine print, and it was sometimes
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  Speaker 2: just seven to ten days.
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  Speaker 1: And to make matters worse, customers only qualified if they
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  Speaker 1: stayed subscribed to the good Guy's marketing emails.
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  Speaker 2: So now the federal court has fined the Good Guys
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  Speaker 2: thirteen and a half a million bucks in order them
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  Speaker 2: to make good with their customers and be man.
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  Speaker 1: All these campaigns are meant to be net positive for
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  Speaker 1: the company. If done wrong, it can lead to more
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  Speaker 1: harm than good. So true, So what is the key
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  Speaker 1: learning here? Promotions like store credits are designed to drive
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  Speaker 1: short term sales spikes, but they don't always build long
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  Speaker 1: term customer loyals.
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  Speaker 2: In fact, when the fine print catches customers out, the
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  Speaker 2: opposite can often happen.
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  Speaker 1: Yeah, for the Good Guys, the store cash campaigns may
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  Speaker 1: have padded sales figures in the moment, but the fine
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  Speaker 1: as well as remediation costs, has really hurt their bottom line.
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  Speaker 2: Not to mention reputational risk the next time they do
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  Speaker 2: a promo.
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  Speaker 1: So true, long term value comes from building trust and
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  Speaker 1: delivering consistent service, not from luring people in with misleading offers.
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  Speaker 1: For our third and final story, Adobe shares have climbed
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  Speaker 1: after the software design giant has seen its customers spending
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  Speaker 1: big on AI design.
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  Speaker 2: Looks like Photoshop just got a fresh filter pack. Juzzy boy,
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  Speaker 2: go on here.
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  Speaker 1: Okay, so Adobe is the creative software behemoth. Find Photoshop
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  Speaker 1: and Illustrator and Dacrobat.
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  Speaker 2: Aka the toolkit. But almost every designer swears by, curses
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  Speaker 2: out and secretly cannot live without.
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  Speaker 1: And be Man. It's also the professional designing subscription experience
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  Speaker 1: is so confusing that you need Illustrator just to work
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  Speaker 1: out how to cancel. And for the last two decades,
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  Speaker 1: Adobe has been known as the design darling as it
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  Speaker 1: continued to grow in dominance.
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  Speaker 2: Until Canva and Figma and others entered the chat.
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  Speaker 1: In fact, over the past twelve months, be Man Adobe
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  Speaker 1: share prices have fallen by twenty four percent.
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  Speaker 2: But now Adobe has announced its Q three adjusted earnings
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  Speaker 2: of five point nine to nine billion bucks in revenue,
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  Speaker 2: which is ahead of analyst forecasts for.
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  Speaker 1: On top of that, it's AI powered and your recurring
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  Speaker 1: revenue cracked five billion US dollars.
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  Speaker 2: Because Adobe is very keen to show investors that its
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  Speaker 2: customers are paying for its generative AI features and josiboy.
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  Speaker 2: While Adobe's competitive moat seemed to be cracking, it's holding
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  Speaker 2: up for now.
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  Speaker 1: So true, So what is the key learning here?
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  Speaker 2: A competitive moat refers to the advantages that help the
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  Speaker 2: company protect its market share against rivals.
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  Speaker 1: For Adobe, its mote is built on three key layers. First,
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  Speaker 1: its brand recognition is enormous yep. For many, Photoshop is
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  Speaker 1: practically a verb. Secondly, its ecosystem is very sticky yep.
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  Speaker 2: Once businesses adopt Adobe tools across marketing and design and documents,
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  Speaker 2: switching to another provider is costly and pretty disruptive. And Thirdly,
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  Speaker 2: it's got an enterprise reputation that is tied to security
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  Speaker 2: and compliance yep. Adobe makes a big deal of being
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  Speaker 2: quote commercially safe.
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  Speaker 1: Especially important when ninety nine percent of the Fortune one
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  Speaker 1: hundred companies are supposedly using Adobe's AI tools.
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  Speaker 2: So josey boy. Adobe is hoping that investors believe that
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  Speaker 2: its mote is still deep enough in the face of
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  Speaker 2: new threats.
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  Speaker 1: Because canvas and Figma are common hard Yeah, Sam, If
• 6:35
  Speaker 1: you want to know where your money's going, how you're
• 6:37
  Speaker 1: spending it, and how you can save more. It is
• 6:39
  Speaker 1: all in the Flux Budgeon tool or we track while
• 6:41
  Speaker 1: you're spending, identify your savings, and also show you subscriptions
• 6:44
  Speaker 1: that you could be canceling. Make sure it's downloak the
• 6:46
  Speaker 1: Flux app and check out the budgeting talk to save
• 6:49
  Speaker 1: some
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  Speaker 2: MORELA thanks for listening and we'll see you on a
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  Speaker 2: Wednesday