Coles gives Woolworths a beating | Star's last roll of the dice | Nvidia's $500 billion decline

This is what the flux.

I'm Brett and Justin and it Monday, the third of.

March, Juzzy Boy, Qatar Airways and Virgin Australia have officially had their marriage approved by the A Triple C. Qatar Airways will now own a twenty five percent steak in Virgin Australia and this could create a much more competitive flight deals fight Aussies and Qantas has responded with the words we always said, we welcome competition. Game officially on block dam.

As we roll over into the month of March, we have a brand new Academy that we're very proud to launch. It's all about understanding Super. There's more than three and a half trillion dollars stored in Super across Australia and most people don't even know how much money they've got or where it sits. So we cover it all in the Fox Academy this month with prizes and leaderboards. View to wins. Make sure to check out the Flex Academy this month.

Three insightful stories Today Juzzy Boy, Let's do it for our first. Coles has announced a jump in earnings to over one point one billion dollars just for the last six months, and yes, it beat the market's expectations.

Will Worth knew this day was coming after the debacle, So tell me more.

Well, Josie, wait, we know that Cole's plays second fiddle to the heavyweight champ Woolies in this supermarket space.

Yep. Cole's currently has around twenty eight percent market share in the space.

But while Wooli's has been struggling, Cole's has been living its best life.

Yeah. It saw its sales from its supermarket division jump four point three percent over twenty point six billion dollars.

And its earnings also jumps seven percent if you don't mind, to nearly one point one bill and.

Then, man, well, Coles has performed strongly. You must admit it was given a bit of a supermarket free kick.

Yeah, that was when Woolies had a strike and shelves barely had any stock.

In fact, Cole's reckons it generated one hundred and twenty eight million dollars in incremental sales from Woolli's own goal.

But the skill was being able to take advantage of the opportunity.

And pounce, and pounce they did.

Next minute, shares jumped over four percent, hitting an all time record high.

So what is the key learning here?

One company's misfortune can be another company's golden egg.

You see, the man winning in the last half wasn't just about having more stores or better products up.

It's also about timing and responsiveness to a bit of a disaster.

Yeah, Coles took advantage of the Woolies opportunity by adding more staff to their stores and their warehouses.

They also work closely with suppliers to increase product deliveries and the man.

By rapidly adapting to the situation, Coles turned a competitor's misfortune into their own opportunity for growth.

Now Cole's is the first company to take advantage of a competitor's mishap.

Juzzy boy, yep. Remember when Optors suffered their major data breach.

I do a casual nine point eight million customers had their data compromised. If my memory served me in the correct fashion, yep.

And in the following months there were tens of thousands of Optics customers that moved over to Telstra.

And Telstra's profits jumped twenty six percent.

So a man, only time will tell whether this was a temporary blit. Foolies, where the customers have taken their shopping habits elsewhere.

For our second story, Star Entertainment Group is fighting a race against time to find new investors asapp or it may collapse.

Start really rolling at the very last minute, be Man, and the odds aren't looking great. So tell me what's going on here.

So, Starr Entertainment Group is the ASX as said, gambling and entertainment company.

You may know Star Entertainment Group from its casinos, the Star Bricks Vegas, the Star Gold Coast, and the Star Sydney.

Now, once upon a time, Star Wars a high roll of the casino world. It was worth more than five billion dollars.

But then the house of cards came crashing down.

Yeap, major scandals, including a money laundering hit, and they've been on a losing streak ever since.

So, b Man, here's what's going on. Star Wars meant to release its half year financial reports last Friday.

Hit me with the butt over here, juzzy boy.

But its board wasn't comfortable to sign off on its financial statements.

Because they weren't confident that the company could pay their bills when they followed due.

You see, be Man, Star's been desperately rattling it in looking for new investors to meet its debts and its short term payments.

But now the board has warned that if it doesn't receive any funding, it will be all over red rover.

Because it wouldn't be a going concern anymore. So what's the key learning here? Going concern is an accounting principle that assumes that company will continuous operations into the foreseeable future.

Now, for Star Entertainment, not being able to secure funding means they won't be able to pay short term debts like payroll or interest repayments of loans and be man.

This puts their going concern status at risk.

You see, Star investors would be closely watching whether the board signs off on these statements.

If they did, it would be a positive signal for Star's financial health and their viability.

But given the CEO reckons it would take hundreds of millions to keep Star running, it kind of seems like the writing is on that wall.

And after the announcement, Star share price dropped ten percent and it's now worth just three hundred and thirty five million dollars.

Or seven percent of its peak value.

For our third and final story, in Vidia suffered a near five hundred billion US dollar fall in its market value after reporting better than expected results.

The investment world has a wonderful and wacky way of dealing with things, Jazi boy, So tell me how this happened.

Okay, So in Vidia has been the hottest name on the planet for the past few years.

Be Man YEP started in nineteen ninety three with the goal to design really sophisticated computer chips for graphics in video games. How about that. But by two thousand and six it began designing computer chips for AI and machine learning. Next minute, it had Microsoft, Amazon and Meta as its key clients.

In fact, the Man. In the last two years, in video share price has jumped by more than five hundred and twenty five percent, and now in Video announced its quarterly revenue jump seventy four percent compared to this time last year. Sounds pretty good, and it did beat expectations by nearly three percent. But next minute, in Video share price dropped more than eight percent, or roughly five hundred billion US dollars.

And for those playing at home, yes, that's nearly two times the GDP of New Zealand.

Wow. So what is the key learning here.

With rapid growth comes rapidly growing expectations.

You see, a man. The reason for the selloff in video shares is because their results didn't beat expectations by as much as usual.

Its revenue and earnings per share were better than investor expectations, but not enough better.

Get this, The fact that only beat its earnings by two point eight four percent means it was the smallest earnings beat since twenty twenty two.

But does a boy. Compared to other tech companies in the US, it's still smashed their quarterly results.

Yeah, Apple, Amazon, Alphabet, Meta, and Microsoft recorded quarterly revenue growth of twelve percent on.

Average compared to in videos seventy eight percent.

But be man as the second most valuable company in the whole wide world. Out of nowhere, it seems like Invidia is currently held to a different standard. Yeah, fluxdam. If your super is sitting in one or two or even three accounts and you don't know how much is in there or how much your return is, you need to do the Flox Academy this month. It could be one of the best investments of your time and potentially

Thanks for listening, and we'll see you on Wednesday.