Latest / What the Flux / Webjet breakup looks good on WebBeds | Hailey Bieber's billion dollar business | Nothing can stop Nvidia

Transcript

Webjet breakup looks good on WebBeds | Hailey Bieber's billion dollar business | Nothing can stop Nvidia · What the Flux

• 0:05
  Speaker 1: This is a lot of flux.
• 0:06
  Speaker 2: I'm Brett and I'm justin and it's Friday, the thirtieth
• 0:09
  Speaker 2: of day.
• 0:09
  Speaker 1: Wait, the latest inflation figures are in. The trimmed mean
• 0:13
  Speaker 1: inflation rate reach two point eight percent in the twelve
• 0:15
  Speaker 1: months to April. That's a jump from the two point
• 0:17
  Speaker 1: six percent in March. This is not the result the
• 0:20
  Speaker 1: Reserve Bank was looking for, so at this point experts
• 0:23
  Speaker 1: aren't exactly banking on a July rate card. Not what
• 0:25
  Speaker 1: we want to hear me, man Neil.
• 0:27
  Speaker 2: It's the last day of the Flux Academy. This month
• 0:29
  Speaker 2: all about getting a better deal. We give you all
• 0:32
  Speaker 2: the tips and tricks to negotiating with your internet provider,
• 0:35
  Speaker 2: your electricity provider, even your homeloand provider. So if you
• 0:38
  Speaker 2: want the scripts to get a better deal, make sure
• 0:40
  Speaker 2: to download the Flux app today and check out the academy.
• 0:43
  Speaker 1: Three marvelous stories today, Jasey Boy, let's do it for
• 0:47
  Speaker 1: our first ASX listed where a travel group which owns
• 0:50
  Speaker 1: where Beds is soaring after seeing its bookings pop and
• 0:54
  Speaker 1: at share price pop even more, Where.
• 0:56
  Speaker 2: Beds living its best post breakup life be man, So
• 0:59
  Speaker 2: tell me more.
• 0:59
  Speaker 1: Well does it web Travel Group is the company that
• 1:02
  Speaker 1: operates the brand Webbeds.
• 1:04
  Speaker 2: They are a travel wholesaler that sells hotel rooms to
• 1:06
  Speaker 2: travel agencies in bulk.
• 1:08
  Speaker 1: And if Webeds sounds familiar to you, it's because it
• 1:12
  Speaker 1: used to be part of the webjet business.
• 1:14
  Speaker 2: But in September last year, the Webbeds biers was booming
• 1:17
  Speaker 2: and Webjet was not really booming, so the two of
• 1:19
  Speaker 2: them consciously uncoupled.
• 1:21
  Speaker 1: Yep, Webbeds demerged from Webjet and listed on the ASX
• 1:25
  Speaker 1: under that web Travel Group.
• 1:26
  Speaker 2: Lots of web going on bman, but now Webeds post
• 1:29
  Speaker 2: split glow up is real. Yep.
• 1:31
  Speaker 1: Webbeds has seen its total transaction volume jump more than
• 1:34
  Speaker 1: twenty percent to four point nine billion bucks for the
• 1:37
  Speaker 1: year to March thirty first, but the Man. Despite this,
• 1:39
  Speaker 1: Webeds still saw its profit down twenty two percent due
• 1:42
  Speaker 1: to a squeeze in their margin. But does it wait?
• 1:44
  Speaker 1: The Webbeds investors did not mind one iota with its
• 1:47
  Speaker 1: share price jumping fourteen percent.
• 1:49
  Speaker 2: Because in a travel sector full of bad news right now,
• 1:52
  Speaker 2: Webbeds kind of looked like a rockstar.
• 1:54
  Speaker 1: So what is the key learning right here? When an
• 1:56
  Speaker 1: industry looks gloomy, A single company bucking the trend can
• 1:59
  Speaker 1: become the market's golden child see Jessey Boy. Investors love
• 2:02
  Speaker 1: a neat story, and when most companies in one particular
• 2:05
  Speaker 1: sector may be struggling, investors tend to assume that everyone's struggling.
• 2:09
  Speaker 2: So when flight Center and Corporate Travel Management downgraded their
• 2:12
  Speaker 2: growth forecasts, investors assumed that would be the same for
• 2:15
  Speaker 2: the whole sector.
• 2:16
  Speaker 1: Expectations drop, valuations dip.
• 2:18
  Speaker 2: And then boom where Bed steps up with a stronger
• 2:21
  Speaker 2: than expected bookings and growth and Juyboy.
• 2:23
  Speaker 1: Even though web Bed's net profit after tax dropped twenty
• 2:26
  Speaker 1: two percent, investors pretty much shrugged that.
• 2:28
  Speaker 2: One off, because when you're the outlier in a struggling industries,
• 2:31
  Speaker 2: investors tend to reward you for it.
• 2:33
  Speaker 1: For our second story, Hailey Bieber has sold her viral
• 2:37
  Speaker 1: beauty brand Road to Elf Beauty for one billion US
• 2:41
  Speaker 1: dollarydoes talk.
• 2:41
  Speaker 2: About a billion dollar clove? B man? What is the
• 2:44
  Speaker 2: tea here?
• 2:45
  Speaker 1: Okay? So Road was founded only a couple of years
• 2:47
  Speaker 1: ago in twenty twenty two by Hailey Biber aka Haley.
• 2:51
  Speaker 2: Baldwin aka Justin Bieber's wife and Stephen Baldwin's.
• 2:53
  Speaker 1: Daughter and Kendall Jenner's brunch Frandity and b Man.
• 2:57
  Speaker 2: Road has gone from generating ten million US dollars in
• 2:59
  Speaker 2: its first to one hundred million US dollars just two
• 3:02
  Speaker 2: years later.
• 3:03
  Speaker 1: Hailey baber leveraged her reputation and sixty six million social
• 3:07
  Speaker 1: media followers to create beauty trends.
• 3:09
  Speaker 2: We're talking clean girl esthetic and doughnut glazed skin.
• 3:13
  Speaker 1: We're talking eighteen dollar peptide lip treatments. They sold out
• 3:16
  Speaker 1: in seventy two hours after launching. But the men, tell
• 3:18
  Speaker 1: me more about ELF Beauty. Your favorite well, ELF, which
• 3:21
  Speaker 1: stands for Eyes, Lips and Face. Josey Woyan, you know it.
• 3:25
  Speaker 1: It's an American cosmetics brand that was founded in two
• 3:27
  Speaker 1: thousand and.
• 3:27
  Speaker 2: Four, and their main selling point up until now has
• 3:30
  Speaker 2: been affordable quality.
• 3:31
  Speaker 1: But now a bit of a flip. ELF Beauty is
• 3:33
  Speaker 1: dropping one billion US dollars to buy Road as a
• 3:36
  Speaker 1: way into the luxury beauty market.
• 3:37
  Speaker 2: And be Man. You'd think that people might skip the
• 3:40
  Speaker 2: eighteen dollar lip balm when they're struggling to pay for groceries.
• 3:42
  Speaker 1: But the hype around Road and the growth in their
• 3:44
  Speaker 1: revenue says otherwise. All thanks to the lipstick effects. Oh yeah,
• 3:48
  Speaker 1: so what is the key learning here?
• 3:50
  Speaker 2: The lipstick effect says that during economic hardship, people still
• 3:53
  Speaker 2: treat themselves, just in smaller way.
• 3:55
  Speaker 1: Some people even say it's an indication that a recession
• 3:58
  Speaker 1: is on the way.
• 3:58
  Speaker 2: It makes sense when seems like it's falling apart. People
• 4:01
  Speaker 2: can't afford big purchases like a new house, like a
• 4:04
  Speaker 2: new car, like a luxury handbag, so they treat themselves
• 4:07
  Speaker 2: to the little luxuries instead, like an eighteen dollars lip balm. Exactly,
• 4:11
  Speaker 2: and b Man. This theory got popular in two thousand
• 4:13
  Speaker 2: and one because sales of LIPSTICKX grew significantly in the
• 4:16
  Speaker 2: US during the economic recession that followed the nine eleven attacks.
• 4:20
  Speaker 1: Beauty companies were lining their pockets while people lined their lips.
• 4:23
  Speaker 2: Essay Lauder, which is a leader in the premium beauty space,
• 4:26
  Speaker 2: they saw an eleven percent increase in lipstick sales during
• 4:29
  Speaker 2: this time.
• 4:29
  Speaker 1: It happened again in two thousand and eight during the
• 4:31
  Speaker 1: global financial crisis, so b Man, well, it.
• 4:33
  Speaker 2: Seemed counterintuitive to enter the premium beauty market. In twenty
• 4:37
  Speaker 2: twenty two, when post COVID inflation was at its peak.
• 4:39
  Speaker 2: Road actually launched its premium brand at just the right time.
• 4:43
  Speaker 1: For our third and final story, in video, the AI
• 4:47
  Speaker 1: chip king has forecasted a massive quarter of growth despite
• 4:50
  Speaker 1: their slowdown in China.
• 4:52
  Speaker 2: Cannot stop and will not stop in video right now,
• 4:54
  Speaker 2: be man, so tell me more so dozy? Wait?
• 4:56
  Speaker 1: We know the story of Nvidia started building graphics cards
• 4:59
  Speaker 1: for gamers back in the early nineties so that we
• 5:02
  Speaker 1: could play Mortal Kombat.
• 5:03
  Speaker 2: Now, be man, it absolutely dominates the global AI hardware market.
• 5:07
  Speaker 1: Get this one. Just two years ago and Vidio had
• 5:09
  Speaker 1: twenty seven billion US dollars in annual sales.
• 5:11
  Speaker 2: Now it's pushing towards two hundred billion US dollars, which
• 5:14
  Speaker 2: is a near eight times jump.
• 5:15
  Speaker 1: And not even Haley Beaver's lip balm can move that fast.
• 5:19
  Speaker 2: So man, you may remember that the US government banned
• 5:22
  Speaker 2: in Video from selling its best quality chips to China, and.
• 5:25
  Speaker 1: That wiped out eight billion US dollars in potential revenue.
• 5:28
  Speaker 2: But that news it was like water offer computer chips
• 5:30
  Speaker 2: back for video because it's forecasting seventy billion US dollars
• 5:34
  Speaker 2: in revenue for just this quarter.
• 5:36
  Speaker 1: Well, in Video is being squeezed out of China. Other
• 5:38
  Speaker 1: policy changers may actually help open up new markets like
• 5:41
  Speaker 1: the Middle East.
• 5:42
  Speaker 2: And the man Despite other AI chips being developed, in
• 5:45
  Speaker 2: Video's first mover advantage has proven quite a benefit for them.
• 5:49
  Speaker 1: So what is the key learning here?
• 5:50
  Speaker 2: First mover advantage is the competitive edge that a company
• 5:53
  Speaker 2: gets by being the first major player in a new
• 5:56
  Speaker 2: or untapped market.
• 5:57
  Speaker 1: While others were still focused on traditional CPU. Who's in
• 6:00
  Speaker 1: Vidia developed GPU based AI chips?
• 6:03
  Speaker 2: Looking at you, Intel, an IBM behind the eight ball?
• 6:05
  Speaker 1: Yes, now in Video owns around ninety percent of the
• 6:08
  Speaker 1: AI accelerated chip market and Josey Boy, that headstart means
• 6:11
  Speaker 1: in VideA can effectively set the standards in this industry.
• 6:14
  Speaker 2: And also set pricing, which is at a premium.
• 6:17
  Speaker 1: First mover advantage doesn't always have a lasting impact, though.
• 6:20
  Speaker 2: Hm, might I remind you of another company that gained
• 6:22
  Speaker 2: a huge market share but was not the first mover.
• 6:25
  Speaker 1: Yes, Google came to the search industry five years after
• 6:29
  Speaker 1: this concept was invented.
• 6:31
  Speaker 2: But now it has around ninety percent market share in
• 6:33
  Speaker 2: search rip ask Jeeves. So while in Videas cemented its
• 6:37
  Speaker 2: dominance for now, you can bet your bottom dollar b Man,
• 6:40
  Speaker 2: there will be and are others chasing fluxam Is there
• 6:43
  Speaker 2: any better feeling than saving money on electricity? Internet and
• 6:47
  Speaker 2: make sure to download the Flex app and check out
• 6:49
  Speaker 2: the academy for the very last day today.
• 6:51
  Speaker 1: Thanks for listening and we'll see you on Monday.