This is what the Flux.
I'm Brett and I'm Justin and it's Friday, the twenty second of November.
Jay Way. Last week we spoke about the Federal government banning social media apps for teens under the age of sixteen. Now the big dogs like TikTok and Meta have been warned if you don't enforce these rules, you could cop a fifty million dollar five and Juzzy Boy. It's not just those two. Snap looks to be the most affected here in Australia, with eighty percent of their users under the age of twenty.
Four shots have been fired by the Federal government b Man. Indeed, Floxam, if you want to pick up fifty bucks before you kick off the weekend, there is always only one place you can do this, in the Flux app. If you're the first person to answer the three business or finance questions correctly, you'll walk away with fifty bucks in your hand. To make sure to download the Flux opp turn your notifications on to win at money.
Three victorious stories today, Juzzy Boy, let's do it for our first me and you. The QR code ordering startup will lay off around ten percent of its workforce just one year after merging with its arts rival, Mister Young's.
Fair to say the honeymoon phase for Me and You and Mister Yum is officially over. So tell me more well.
Jusey Boy and Mister Young and Me and You are both mobile ordering platforms for pubs and cafes.
Both of them were found in Australia in twenty eighteen.
Both of them specialized in those little QR codes at restaurants that lets you order without speaking to a human waiter or waitress.
But being in September twenty twenty three, the two companies surprisingly decided to merge.
Indeed, yep, they were competing against each other with the same product for the same customers.
Yeah, and when they merged, they kept the men you name and now claimed to be the world's biggest mobile ordering app for pubs and cafes.
But now Juzi Boy, Me and You is going to lay off ten percent of its workforce.
The reason you may be asking me, man, Yes, they are desperate to reach break even in twenty twenty.
Five, and when a merger takes place, there's often overlapping positions.
Two HR teams, two legal teams, two sales functions, so Jazie Boy, in order to hit break even, Me and You has decided it's time to.
Clear the decks.
So what is the key learning year?
Business success isn't all about going fast, It's actually about becoming profitable.
You see, be Man. Before merging with Me and You, mister Young had already raised over one hundred million dollars.
But it hadn't managed to reach profitability yet.
Mask Growing startups often prioritize expansion to capture market share ahead of profitability.
And mister Young was no different. It's all growth of one hundred and thirty five percent year on year in twenty twenty two.
But be Man, this strategy can sometimes and often does, come at the cost of profitability.
Because often growth can be pretty darn expensive.
Between the hiring of sales staff, building brand awareness, improving the actual product.
And jazyboid. The decision to refocus on profitability instead of just growth is often a sign of a maturing business.
Or an impatient investor pase who want to start seeing financial return.
Either way, the merged Me and You knows that the fastest way to get there will be to reduce their workforce costs.
For our second story in video, share price dropped after releasing its quarterly results, but its CEO reckons the AI gold rush is going full steam ahead Seal two to two.
If you ask me, Jazzy Boy in Video cannot stop and just will not stop, so tell me okay.
So in Video was founded in nineteen ninety three.
Specializing in graphics processing units or GPUs for gaming Beman.
By the mid twenty tens, it began investing heavily in using its computer chips for AI, back when everyone else was spending their time and energy on virtual reality. Headzepp still waiting on the results there and b man, it was a pretty good coll point in video because its market value has grown to more than three point six trillion US dollars.
So, in other words, it's the most valuable company in the whole wide world. See your later, Apple, Amazon, and Alphabet And now Jazzy Boy in Video has announced its third quarter revenue of just over thirty five billion US dollars for the quarter, that is.
A ninety four percent year on year increase.
Interestingly, in Video share price dropped two percent after these results.
Beating expectations just doesn't cut it anymore. Beamn, you've got to smash them to make Wall Street happy.
But given in Video is now the largest company in the world, its results hold a lot of sway in public share markets.
Too true, So what is the key learning here?
A handful of companies hold the key to the entire global stock market.
Get this, Beman and Video a low accounts for six point seven percent of the SMP five hundred index and Juboy just ten stocks make up thirty percent of the index. So be man. The idea that investing in the SMP five hundred index is good for diversifying your investment is kind of starting to fall apart.
Too many eggs in too few baskets, if you ask my good self.
Yeah, but be man. With so much market concentration in so few companies, it creates a pretty big risk. Well be called Josey boy House So well, the success and failure of many investments are becoming tied to a small group of tech giants.
So let's say these companies face a downturn. It could really ripple through the entire economy.
And be man, it ain't just investors on the stock market who could be effected. Thinking about superfuns international ETFs as well. For our third and final story. Jaguar, the British car maker, has rolled out a brand spanking new logo as part of its plans to transform into an electric only brand.
A heap of backlash coming their way. Juzzy boy, I've got my eye on it, So tell me more.
Okay, so Benman. Jaguars founded in nineteen twenty two in the United Kingdom and has been known as a pretty iconic British luxury brand.
We all know that Jaguar perched on the front of the car that looks like it's about to leap off that be man.
Back in nineteen ninety nine, Ford acquired Jaguar, and then in two thousand and eight during the GFC, Tatar Motors acquired Jaguar.
Just keeps changing hands.
And the man now Tata is making a pretty bold move with the Jaguar brand.
Yeah, last year they stopped producing any new Jaguar cars all gone and.
It was all part of their plan to transition to an electric only brand.
And as part of this transition, the iconic Jaguar logo has been scrapped.
And in comes the new leaping cat as well as a kind of uppercase, kind of lowercase logo.
And jaziboit with this brand's making new logo. Jaguar plans to launch three new electric cars by twenty twenty six, so.
They made it very clear that it is a totally new brand and will not be confused with their existing petro.
Motives confusing stuff Dozzy boy. So what is the key learning here?
Brand's trying to reinvent themselves need to work a fine line between innovation and preserving their legacy.
See juzzy Boy. A logo is the first impression a company makes with its customer Nikes, tic Macas, Golden Arches.
Loca Cola's red scripted writing.
So by updating their iconic leaping cat, Jaguar is trying to send a message to the market.
We ain't just another car company doing a bit of petrol, a bit of diesel and a bit of electric.
We are electric.
But be man. It takes a pretty brave company to update a very iconic logo.
Comes with the risk of alienating existing customers and existing fans who have built a strong emotional connection with the original design.
And be man. Might I remind you back in twenty ten when fashion retailer Gap unveiled a new logo that was a modernized logo.
And Jazy Boys better say that customers hated it.
Yep, so much so the Gap reverted to its original logo just a week later. Could say the same thing here with Jaguar Plasdam. There is only one place to be on a Friday. It's not at work, it's not at the beach. It is right next to your phone, waiting for that Flux notification to come through to your phone. If you are the first to answer three questions correctly, the key bucks will hit your account to make sure to download the Flux outturn on your notifications to win at money.
Thanks for listening and we'll see you on Mondays.