Inflation hits 3 year low | Dropbox cuts 20% of jobs | Reddit shares earns more karma

This is what the Flux. I'm Brettanna Justin and it's bright a first of November. Do boy.

Canva is coming back with a vengeance. Remember during peak COVID when it scored a forty billion US dollar evaluation, Well it dropped down to twenty six billion at one stage, but now back to thirty two billion US dollars. Seems like some investors are very keen to get a little slice before it's long away to the IPO. When is this IPO.

Five, twenty twenty six, twenty thirty centuries? And then you're a pretty sharp guy, and I reckon if you competed in quick six this week, you might be a chance to win. It's our weekly game where we challenge the Flux community to answer three questions correctly to win fifty dollars cash to kick off the weekend. So flex am, if you think you're knowledgeable and you are a win at money, Yes, they shot to download the Flux outturn on your notifications to play quick stix today.

Three victorious stories today, Juzzy boy, let's do it for our first. Australia's quarterly inflation is below three percent for the first time since twenty twenty one if you don't mind, but the reserve is still and I repeat, still unlikely to make a rate cut next week.

What will it take, Michelle Bullock, what will it take? Will be man?

Well as you know, Juzzy Boy, Inflation has been one of the most talked about topics over the last three years. I'm sick of it, yeap.

Ever since COVID hit, billions of dollars in stimulus. Money was pumped into the economy and inflation exploded like a buttery popcorn in a microwave.

We're talking inflation jumping to a high of seven point eight percent here in Australia.

But be man now, Australia's inflation rates the lowest rate in three and a half years now.

According to the Australian Bureau of Statistics, the annual inflation rate fell to just two point eight percent and they know their way around a stat.

Yeap, down from three point eight percent during the middle of the year as well.

And Jessie boy, the good news is that we saw the price of petrol drop and power too, although rant and building costs still rise here. Just calm your farm for one momentum, because despite these positive ish results, the Reserve Bank of Australia still isn't expected to cut rates this year.

But we are heading closer, particularly as the trimmed mean dropped to three and a half percent.

As well, which is getting closer to its target of two to three percent.

So what is the key learning here?

The trimmed mean is like taking a group of test scores and removing the highest and the lowest ones to find a better average. Yet we know the extreme scores could affect the overall picture and kind of misleads people. So in the case of inflation, the trimmed mean chucks out some of the more volatile items.

And this gives the RBA a clearer picture of the real inflation trends.

For example of Judzy Boy, the government has created an energy rebate which gives power bill credit and this can totally skew the overall inflation rate. So the trimmed mean cuts out all of the temporary spikes in prices.

For the ABA, I want to see consistent drops in inflation before dropping the cash rain.

That may take a few more months.

For our second story, Dropboxes announced it will lay off twenty percent of its workforce after it struggles through a transitional period, never a good term a transitional period in a corporate company. Juzzy boy, So what is going on here? So v Man Dropbox launch back in two thousand and seven when Rihanna is singing Umbrella all over the radio eight.

And by the way, back when USB's with a course thing since floppy.

Disks now, but Man, back then, dropboxes founder had an idea to launch storage that wasn't on a USB but actually stored online.

And while that sounds quite elementary now, it was revolutionary at the time.

They went viral in two thousand and eight when Dropbox ran a referral campaign that helped double its userbase every three months for two years.

And since then it's grown to more than seven hundred million registered users.

And eighteen million paying uses as well.

But now, dozy Boy, Dropbox is going to lay off twenty percent of its workforce, which is more than five hundred people.

The goal is to make cuts in areas where Dropbox has over invested.

And why are they making these?

Their big big cuts willbe man. Dropbox has lost serious market share to many of its rivals, like Little Drive, Microsoft's one Dried, Apple's iCloud.

In fact, Dropbox only added sixty three thousand new uses in the most recent quarter.

Which was its lowest quarter of growth in its history.

Oh boy, So what is the key learning here in the tech world?

Today's groundbreaking product can quickly become tomorrow's standard feature.

For Dropbox, this means their cloud storage, which is once pretty revolutionary, is just one of many cloud storage services.

Oh and b man, did I mention? They're now also competing with the behemoths like Google.

And Microsoft actually did already mention and they have billions of users collectively? Does you bo for Dropbox?

It's kind of like being the star of the show only to find your way now part of an ensemble cast? You know all about that.

The challenge for Dropbox has been staying ahead in a world where everyone else is catching up, and a.

Man, Dropbox isn't the first product to become a common, undifferentiated feature in another company's app.

And what about Zoom? Now there's Google, meet Microsoft, teams and a whole host of others in that ensemble cast.

For our third and final story, Reddit share price the skyrocket over forty percent after its first ever profitable corner. Pun you a forum for rants and very weird questions could be this humongous? What is happening right here? All right? We know. Reddit is the social online forum that was launched back in two thousand and five, and it's known for its user led communities called subreddits.

And does boy it ain't small. In August of this year, Reddit became the ninth most visited website in the Solar System.

And they may now. Reddit share price has jumped a wap in forty percent after it announced its first ever profitable quarter.

Reddit saw its total revenue jump sixty percent to a cool and casual three hundred and forty eight million US dollars, and it brought in an adjusted operating profit of more than ninety four million US dollars compared to a loss

And be man, Well, that's a juicy revenue source for now. It's a little tricky to see how it plays out long term.

So what is the key learning here?

A trendy revenue source today is only successful if it's sustainable into the future.

Lately, we've been seeing many media companies entering deals with AI companies.

The simple exchange, we give you access to our content to train your AI models.

And then you give us fund sized wielbarrows of cash.

Think the Financial Times, News Corp, Time, Box Media, and of course Reddit.

And these deals are creating new revenue streams for media companies who are desperado to find new sources of revenue. News Corps deal with open Ai is reportedly worth two hundred and fifty million US dollars over the next five years, and Reddits ai deals are worth two hundred and three million US dollars. But the man Given how new AI is as a technology, there's not a lot of clarity on how this sort of revenue source will play out

For now, but when those products become good enough and accurate enough, they might not need the source material.

Anymore, which could create an existential crisis for many of these media brands.

Box sam if you want to win a money and prove to everyone else in the Flux community that you are the smartest and the quiggst. There is only one place to do it today, It's in the Flux app playing quick Sticks. Make sure to download the app, spend on your notifications to win fifty bucks and kick off your weekend on a height.

Thanks for listening and we will see you on Monday.