This is what the Flux. I'm Brett and I'm Justin and it's Friday, the eleventh of October. Flex Family.
We've got a little bit of a different intro today because rather than sharing business news on other companies, today's intro is about Flux.
Yep, we are very excited to announce that Flex has been acquired by net Wealth and ASX two hundred company and one of the fastest growing wealth management and tech companies in.
Australia and Flex Family very importantly, our podcast, our newsletter and our app will all be remaining the exact same, Plus.
B Man, we now have even more resources to create and do more and more and more. To stay tuned as we share more updates over the coming months.
Judie Boy, three earth shattering stories today, let's do it for our first. Rio Tinto has swum against the lithium tide by acquiring arcadium lithium for nine point nine billion dollars.
How when everyone's turning back to copper, Rio is backing in the lithium. So tell me well, Jazie Boy.
Rio Tinto is the world's second largest metals and mining company, behind the other Aussie company, BHP.
Rio Tinto is an absolute behemoth.
Yeah, it is more than twenty three thousand people mining iron ore, aluminium, copper, and now Jusi Boy Rio just dropped a wheelbarrow full of cash nine point nine billion dollars to be exact, to acquire arcadium lithium.
Now be man. We know that lithium has been the hottest of hot metals over the last few years since they power the batteries in electric vehicles.
But what's interesting is despite the boom in lithium, there's actually been a ninety percent slump in lithium prices over the past eighteen months.
That the man Riatinto CEO is backing in lithium over the long term. So what's the key learning here? Be fearful when others are greedy, and greedy when others are fearful.
Oh, a very famous quote from your man Warren Buffet.
Yep. It's all about buying solid companies when the market has assessed them too negatively based on short term factors.
You see, Juzi boy lithium has dropped by ninety percent in the past eighteen months.
If you zoom out a little bit further, it's still up over three hundred percent. Over the past three years.
And the CEO of Rio Tinto is more focused on the average lithium price over the next decade rather than the next year.
You see be man. As a multi multi, multi billion dollar company, Rio Tinto knows it'll be around for a while, so it can take advantage of the market's short term panic and does it. Boy what's the main reason for the drop in lithium prices. Well, there's been a slowing in the demand for electric vehicles around the world.
But again, evs are expected to grow more than six point six percentage year across the world.
So while it may not be experiencing the rapid growth or volatility of previous years, it's still trending in the right direction.
And that is exactly why Rio Tinto has snapped up Arcadia.
For our second story, stan the streaming service owned by nine Entertainment, is considering bringing advertising onto its platform to boost its revenue. Another one bites the dust for young uncle Stanley. What's the story here, does boyd stan is the aussy streaming service that was launched back in twenty fifteen.
It's actually the fourth largest streaming service in Australia, behind the international Big wigs of Disney plus Amazon Prime and of course Netflix.
Now b man, it's the platform that has licenses to shows like Normal People, Breaking Bad and The OC in Australia, which I know you loved and watched recently I did. Indeed, now now doeszy Boy.
Although STAN has grown to over two point two million binge watchers paying for a subscription, STAN is reportedly looking to introduce a new revenue stream.
Don't say it, don't say it, don't say it, don't say it. That's it. I'm gonna say it.
STAN is looking to introduce advertising onto its platform to increase revenue.
Hmmm, wonder where they got this? Completely original never been done before, I diear from well doesy boy?
Till now, Stan's been one of the only platforms that hasn't run ads.
While still competing alongside the streaming giants like Netflix and Amazon. But does it boys?
Stan subscriber numbers have been sitting flat for the last two years.
So if it wants to increase its revenue, it'll either need to increase prices to customers.
Or perhaps something crazy, find a new source of revenue.
So what is the key learning here?
As any industry evolves, needs to continue to find new and often creative ways to increase revenue.
Ivan Man, we know for streaming services the main lever to increase revenue is to jack up the prices of those subscriptions.
But Josie, wait, give it our competitive the stream market is it can be very easy to lose market share when you hike up those prices too high, which.
Explains why advertising has become a popular route to unlocking more revenue for streaming services.
Heart We first saw Netflix enter the ad scene, and they were soon joined by Disney Plus and Hulu and Hbo, Max, Amazon, Paramount Plus.
And now potentially stand as well. Yep.
But Josie, boy, the challenge with introducing ads to Stan is that it operates alongside Nine Entertainments free to air channels, which.
Means it needs to make sure it doesn't pull revenue away and actually cannibalize Nine's free platforms.
For our third and final story, gooz Money Gomez, the now ASX listed, a Mexican food chain, announced quarterly sales growth above it's already ambitious expectation.
Holy Gogamally, somebody in Australia is eating a lot of burritos. Here be man, It's true and it's not me olu, so tell me more nuts.
So Guzman Igomez is the Mexican style fast food chain that started in Sydney in two thousand and six.
Yeah, their plan was to swap out sloppy taco is a fresh, tastier and healthier option, but still serve them with fast food speed. Sounds a little bit like a Mexican macas. In June's year, gig became one of the most widely debated stocks to list on the share market.
YEP listed at a market evaluation of three point three billion dollar.
Dude. Some investors thought it was a burrito stuff too full and it wouldn't meet its lofty targets. Others thought the price actually needed a little bit more salsa. But now GAG's announced that its sales have grown to over two hundred and seventy eight million dollars in the first three months of this financial year, and it.
Was on track to hit its prospectus forecasts.
Interesting and a share price by the Babe Man also up more than twenty nine percent since it's listing, quite the fiesta for investors and jes it boy.
A big reason for this is the limited number of shares available in the free float.
Interesting, So tell me what is the key landing here?
The free float first to the portion of a company's shares that are available for trading by the general public.
You see be man. A lower free float can create scarcity, which can drive up share.
Prices, obviously because more investors are chasing fewer shares.
But here's where it gets interesting. Because gug has a very limited free flow.
Y yep, just fifteen percent of its stock is considered available to the public.
And given its performance has been inline or sometimes better than expectation, investors have been gobbling up GAG shares and driving up the price quicker than you can say extra.
Guark aha, and as a result, Jasie Boyd, this has contributed to its rapid share price growth since its IPO.
Fox Am just wanted to thank you once again for being such big supporters of Fox's app, podcast and newsletter over the last few years.
And very excitingly, now that we're in by netwealth, it means that we'll have even more resources to create and do much much more. So stay tuned as we share more exciting updates over their coming months.
Thanks for listening and we'll see you on Monday,