This is what the flax. I'm Brett and I've justin. It's Friday, the twenty first of November, does it? Wait?
Webjet could be called Hello Webjetty pretty soon. Hello World is the old school travel agent with old school shops and making the bookings for you. And it's just made a three hundred and fifty three million dollar takeover offer for Webjets. Next minute, webjets share price spike seventeen percent, So watch this airspace.
It'd be very interesting there be man by time. We often hear in Australia that property is the great Australian dream, But in terms of financial returns, is that actually stack up well? We have done a deep dive comparing the returns to the property market, ver's the returns in the share market over the last ten years. So if you want to learn which one comes out on top, make sure to download the Flux app and check out our latest article.
Three riveting Stories Today Juzzy Boy, let's do it for our first Quantas is taking the loyalty battle to Virgin Australia head on with a new membership program for Jetstar.
Battle of the Aussi air Lines is on BMN so what is the story here?
Right? So we know Quantus is Australia's biggest domestic and international airline, founded in nineteen twenty.
And it also owns Jetstar, which is the budget friendly airline for people who can't justify the full service prices and.
Who don't need a free biki or tea on their flight.
Now, be man, get this together. Quantus and Jetstar hold over sixty percent market share of the domestic aviation market and.
Jesus, wait, we know that Virgin holds about thirty percent market share and is pretty much Jetstar's only rival.
So now, be man. Quantus wants to lure these Virgin Australia customers back to Jetstar.
And they're dangling their shiny rewards program as bait.
As part of this new annual membership, Jetstar customers will be able to earn frequent Flyer status credits and points equivalent to Quantus flights. Now.
Quantus claims that the goal of expanding the program is to offer more passengers the chance to gain more points and credit.
But it seems like the real reason is to squeeze Virgin's business on both ends of the market with their duel brand strategy. Fascinating, So what's the key learning. The duel brand strategy is when a company uses two dis distinct brands to target different customer types in the same market.
This allows them to experiment with different service styles and compete at both premium and budget levels.
Man Quantisant jets are are a classic example of the dual brand strategy, and.
Juzboy it's not that uncommon.
Nope, We've seen it with Singapore Airlines, which owns budget airlines Scoot as well.
And passengers can earn Chris Flyer loyalty points across both of those airlines.
We've also seen it with Toyota and their premium brand Lexus as well.
And jesse Boy. In twenty twenty two, the last time jets are reported on passenger numbers, it flew nineteen million passengers in a year, and that.
Means nineteen million more people who have the option to snag frequent fly points when they travel.
So by capturing both the high and low ends of the market with its loyalty program, it leaves single brand airlines like Old Virgin battling to find their niche.
For our second story, Nvidia is keeping the AI boom alive as it outperformed the very lofty expectations of investors, and the whole market rose on the news.
The AI crash and burn that skeptics were hoping for has not arrived.
Tell me more, Okay, so in Video is the US chip maker whose GPU chips pretty much power every single major AI model in the whole wide world.
Fun fact, in Video was worth just four hundred billion US dollars three years ago.
And more recently, it became the first company to hit a five trillion US dollar valuation, now Josey Boy.
Over the past week, the broader share market has become quite jittery.
Yeah, there was a fear of a bubble in AI stocks, especially in Video, which they were concerned might not hit the lofty expectations of investors.
But fear not, Juzzy Boy in Video has pulled through once again with this quarter's numbers exceeding investor expectations.
We're talking revenue of fifty seven billion US dollars for the quarter, up.
Sixty two percent year on year, better than expectations.
And for next quarter they're forecasting sixty five billion US dollars.
For Josei Boy, who is paying for all these chippys.
So I'm glad you asked, because sixty one percent of in Video's revenue comes from four customers name and shame. Well in video calls them customer A, customer B, customer C, and D, with the largest customer accounting for twenty two percent scent of in Videa's entire revenue.
We don't know exactly who is who, but everyone assumes this is Microsoft, Amazon, Meta, and open Ai.
So investors breeded a sigh of relief after this news, and.
It pretty much pulled up the whole market. Given in video's impact these days.
So true, So what is the key learning here?
When one giant becomes so dominant, its results can move entire indices.
And that means the upside is huge, But so is the potential downside.
And the bigger in video gets, the more markets rely on it to keep delivering ridiculous growth.
If fact, beman in videos share gains this year have accounted for eighteen percent of the entire sm P five hundred total turn for this year.
The problem is that if in video ever misses or hits an unexpected speed bump, it will drag the whole market down.
Think Microsoft, Think Amazon, Alphabet Meta. The very customers buying all of these chips, in fact, be man Even in Australia, the tech sector gets confidence from in Video.
In fact, it was up five point one percent yesterday off the back of the Nvidia news. So for now the results have settled the concerns of investors.
But you can only imagine this concern will come up again and again each quarter for in Video given their frothy frothy evaluation.
For our third and final story, Adobe has dropped almost two billion US dollars to buy sem Rush so it can beef up its marketing and AI tools.
Everyone's favorite PDF overlord is a backshopping again, so tell me more.
So. Adobe is the creative software giant behind Photoshop and Illustrator and Premiere Pro and of course Acrobat.
Basically the entire design stack used by designers and marketers and video editors.
And what about old sem Rush, Well, they're.
A marketing platform and they basically help businesses grow their online presence through a lot of data.
Yep, they help marketers improve their SEO content marketing and also just spy on competitor's activity.
And now Adobe's announced it will acquire sem Rush for one point nine billion US dollars.
That is large. A seventy seven point five percent premium on their previous share price.
Sounds like a pretty steef price to pay our record.
Yep, that's because sem Rush isn't a big revenue machine yet.
But Adobe reconds the strategic value of having a marketing platform could be huge for their existing customers.
So what is the key learning here?
The easiest revenue boost isn't finding new customers, it's given your current ones more reason to stick around.
Adobe knows its core audience inside out.
We'd been talking designers and marketers, creatives as well as agencies and Josie Boy.
These days, those customers don't just create content.
Nope, they manage social channels, they write ad campaigns, and they obsess over seo.
So rather than finding new customers, Adobe is widening its offerings so it can sell more solutions to the same loyal base.
And Spotify did the same thing. It built a huge audience around music streaming.
Then it realized those same listeners also wanted podcasts and audiobooksp So.
Adobe is now trying to create a product ecosystem so that it's customers never want to leave flux am did you know in the past twenty years, Australian property has delivered an average of seven point seven percent annual growth and the share market well hasn't done too badly either. So if you want to know which investment might have been better, they shore you download the Flux app and check out our latest article Shares First Property.
Thanks for listening and we'll see you on Monday