Booktopia's final chapter | Domino's cheesy challenge | Tesla shares up by 10%, but...

This is what the flux. I'm brad, I'm justin and it's Friday, the fifth of July.

If your super is with aware Super Australian Retirement Trust or even AMP, then you are entitled to a big grin on your face this Friday. These super funds delivered returns over eleven percent in the last financial year. That's according to super ratings. Compare that to the median balance super fund return of eight point eight percent.

Didn't expect those three p man. Speaking of big grins, though, we want to give another Flex down member a reason to grin from eat with our weekly quiz Quick Sticks and today we're mixing it up at all, giving eight one hundred dollars. But there are five questions to answer, so make sure to download the Fox app, turn on your notifications and be the first to answer them all correctly. Be your chance to win three.

Smiley stories today Juzzy Boy for our first book, Topia has gone into voluntary administration after a battle to cope with its financial struggles.

The plot is sticking here, be man, so what is going on? Well, Dozy Boy.

Book Topia is Australia's largest online bookstore, founded in two thousand and four and listed on the ASX in December twenty twenty.

It also owns the bookstore chain Angus and Robertson Ah that old chestnut now be Man. Book Toopia has been doing it pretty rough lately. It's cut ninety jobs in the past eighteen months to save on.

Costs, and in its most recent half year earnings update, book Topia announced sixteen point seven million dollars in losses and.

A twenty two percent drop in revenue for the half year. Now Dazi boy.

Roughly two weeks ago, book Topia entered a shared trading halt to try and sort out its financial situation, but now.

Book Tobia's struggled to secure additional funding to stay afloat, and it's gone into voluntary administration.

Topia reckons it's the poor economic conditions and reduced consumer spending that has led to all of this.

But be Man will book Topia's morning. It's crumbling business. There's someone in the shadows eyeing it's left over. Who I'm interested? What is the key learning here? A company may go under, but its pieces can still hold value.

Book Toopia might not be in a position to operate anymore, but its assets could still be useful and valuable to someone else.

In fact, as book Toopia has gone into administration, Dimmicks has been watching on from the sideline.

And it's been considering purchasing some of Booktopia's assets, especially its fulfillment and distribution centers and be man. Given the two operate in the same industry selling books, it's not hard for Dimicks to poach book Toopia's assets and use them to grow its own business. And jiboy, We've seen this before with Dick Smith.

Yep, Dick Smith couldn't survive, but it's intellectual property and its online businesses with valuable assets to the company that acquired it Coging So jaziboy.

While this may be the end of the road for Booktopia, the systems and the products that built could find a new life with a new owner. For our second story, Domino's Pizza is expecting its twenty twenty four profit estimates to be seriously hurt thanks to the inflation of one of its most valuable ingredients. Don't even think about skipping out on the cheese, Dominoes.

What the mozzarella is going on here? Okay, so we know Domino's Pizza the asxisted company. It's had a wild ride over the past few years, yep.

But share price has jumped all the way to one hundred and fifty nine dollars during peak pandemic, and it's come back down to earth to thirty five dollars.

A boy, now does you? Boy?

You obviously know that domino serves all sorts of delicious cheesy pizzas and delicious cheesy melts like.

The barbecue meat Lovers, the Mega meat Lovers, the Lost and of course the double bacon cheeseburgerizza.

Now, I don't want to name every ingredient in these pizzas, but I can tell you one thing, my friend, they all have a heck of a lot of cheese in them.

And now, be Man, Dominoes is facing a new challenge because the price of cheese is up nearly forty percent since the end.

Of March, and as a result, investors and analysts are expecting Domino's profit to be flatter.

Then they're colluten free bases, and I know them well. In fact, be Man, Domino's basket of commodity inputs is now back at the highest level since November twenty twenty two, according to Baron.

Joey, and with consumers also cutting back on spending. This is not a combo that leads to cheese tasting pizzas.

So what is the key learning here?

Commodity prices is one of the major sources of business risk that can up end hospitality company.

Get this, Food costs on average account the thirty three percent of restaurants in higher revenue.

So jesboy, When a company experiences price inflation on essential commodities like cheese, it can majorly impact their costs and profit margins.

And be man, I hear what you're saying. Why don't they just increase their pizza prices? Not sure, I said that, Jasey boy. But go on, well, there's a limit to how much consumers are willing to pay before sales volume starts to decline. And that's exactly what happened last year.

They increased their prices and profits dropped by more than twenty percent.

So be man. Dominos finds itself between a crust and a hard place because cheese is the core topping to any good pizza.

For our third and final story, Tesla's investors shut up its shares by ten percent after its sales fell by less than expected last quarter and it pulled an energy rabbit out of the hat.

Muski the magician always, sometimes often or sometimes always has strange things up your sleeve. So what's going on here? Well, Jaseyboy.

Tesla's shot onto the electric vehicle scene back in two thousand and eight with its first car, the roadstre and since.

Then electric vehicle race has heated up faster than an ice cube melting on a hot sidewalk.

We've got Tesla, but also byd Volkswagen General Motors. Have you heard of still Ant's Uzzy Boy, and pretty much every other brand trying their hand here and be man.

That's meant Tesla has been forced to drop its car prices three separate times in April and May this year, just to clear a backlog of their stock. Surely you just do one big cut, I know, but be man. Even so, Tesla has still seen its sales decline in the most recent quarter by four point eight percent, which is still less than the eight point five percent fall in the first quarter and actually less than investors expected.

You see, juzzy boy investors often pay a premium for the potential of future profits rather than current performance.

For example, Gouz Minigomez's current price to earnings ratio PE ratio is over five hundred because of its big promises for the future.

Now, back in twenty twenty, Tesla's PE ratio was over eleven hundred.

That is real high.

But since then it's PE ratio dropped to under thirty five because Tesla's electric vehicles aren't that unique or appealing anymore.

But now its ventures into AI and energy storage present new opportunities that could redefine the.

Sector, and the anticipation of growth in these sectors is a reason why Tesla investors boosted its share price.

By ten percent. Fox Am, there is no better way to start the weekend that our one hundred bucks cash into your bank account, and we're doing it this week in our weekly quiz Quick sticks to make sure to download the Flux app, turn your notifications on, and use your fast fingers. Thanks for listening, and we'll see you on Monday