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With Trump’s cutbacks, crew heads for ISS unsure of when they’ll come back

1 August 2025 at 22:06

The next four-person team to live and work aboard the International Space Station departed from NASA's Kennedy Space Center in Florida on Friday, taking aim at the massive orbiting research complex for a planned stay of six to eight months.

Spacecraft commander Zena Cardman leads the mission, designated Crew-11, that lifted off from Florida's Space Coast at 11:43 am EDT (15:43 UTC) on Friday. Sitting to her right inside SpaceX's Crew Dragon Endeavour capsule was veteran NASA astronaut Mike Fincke, serving as the vehicle pilot. Flanking the commander and pilot were two mission specialists: Kimiya Yui of Japan and Oleg Platonov of Russia.

Cardman and her crewmates rode a Falcon 9 rocket off the launch pad and headed northeast over the Atlantic Ocean, lining up with the space station's orbit to set the stage for an automated docking at the complex early Saturday.

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At $250 million, top AI salaries dwarf those of the Manhattan Project and the Space Race

1 August 2025 at 21:23

Silicon Valley's AI talent war just reached a compensation milestone that makes even the most legendary scientific achievements of the past look financially modest. When Meta recently offered AI researcher Matt Deitke $250 million over four years (an average of $62.5 million per year)—with potentially $100 million in the first year alone—it shattered every historical precedent for scientific and technical compensation we can find on record. That includes salaries during the development of major scientific milestones of the 20th century.

The New York Times reported that Deitke had cofounded a startup called Vercept and previously led the development of Molmo, a multimodal AI system, at the Allen Institute for Artificial Intelligence. His expertise in systems that juggle images, sounds, and text—exactly the kind of technology Meta wants to build—made him a prime target for recruitment. But he's not alone: Meta CEO Mark Zuckerberg reportedly also offered an unnamed AI engineer $1 billion in compensation to be paid out over several years. What's going on?

These astronomical sums reflect what tech companies believe is at stake: a race to create artificial general intelligence (AGI) or superintelligence—machines capable of performing intellectual tasks at or beyond the human level. Meta, Google, OpenAI, and others are betting that whoever achieves this breakthrough first could dominate markets worth trillions. Whether this vision is realistic or merely Silicon Valley hype, it's driving compensation to unprecedented levels.

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Tesla loses Autopilot wrongful death case in $329 million verdict

1 August 2025 at 19:40

Tesla was found partially liable in a wrongful death lawsuit in a federal court in Miami today. It's the first time that a jury has found against the car company in a wrongful death case involving its Autopilot driver assistance system—previous cases have been dismissed or settled.

In 2019, George McGee was operating his Tesla Model S using Autopilot when he ran past a stop sign and through an intersection at 62 mph then struck a pair of people stargazing by the side of the road. Naibel Benavides was killed and her partner Dillon Angulo was left with a severe head injury.

While Tesla said that McGee was solely responsible, as the driver of the car, McGee told the court that he thought Autopilot "would assist me should I have a failure or should I miss something, should I make a mistake," a perception that Tesla and its CEO Elon Musk has done much to foster with highly misleading statistics that paint an impression of a brand that is much safer than in reality.

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ChatGPT users shocked to learn their chats were in Google search results

1 August 2025 at 17:21

Faced with mounting backlash, OpenAI removed a controversial ChatGPT feature that caused some users to unintentionally allow their private—and highly personal—chats to appear in search results.

Fast Company exposed the privacy issue on Wednesday, reporting that thousands of ChatGPT conversations were found in Google search results and likely only represented a sample of chats "visible to millions." While the indexing did not include identifying information about the ChatGPT users, some of their chats did share personal details—like highly specific descriptions of interpersonal relationships with friends and family members—perhaps making it possible to identify them, Fast Company found.

OpenAI's chief information security officer, Dane Stuckey, explained on X that all users whose chats were exposed opted in to indexing their chats by clicking a box after choosing to share a chat.

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Rocket Report: NASA finally working on depots, Air Force tests new ICBM

1 August 2025 at 11:00

Welcome to Edition 8.05 of the Rocket Report! One of the most eye-raising things I saw this week was an online update from NASA's Marshall Space Flight Center touting its work on cryogenic propellant management in orbit. Why? Because until recently, this was a forbidden research topic at the space agency, as propellant depots would obviate the need for a large rocket like the Space Launch System. But now that Richard Shelby is retired...

As always, we welcome reader submissions, and if you don't want to miss an issue, please subscribe using the box below (the form will not appear on AMP-enabled versions of the site). Each report will include information on small-, medium-, and heavy-lift rockets as well as a quick look ahead at the next three launches on the calendar.

Australian launch goes sideways. Back-to-back engine failures doomed a privately developed Australian rocket moments after liftoff Tuesday, cutting short a long-shot attempt to reach orbit with the country's first homegrown launch vehicle, Ars reports. The 82-foot-tall (25-meter) Eris rocket ignited its four main engines and took off from its launch pad in northeastern Australia, but the rocket quickly lost power from two of its engines and stalled just above the launch pad before coming down in a nearby field. The crash sent a plume of smoke thousands of feet over the launch site, which sits on a remote stretch of coastline on Australia's northeastern frontier.

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Microsoft Stock Analysis: Buy or Sell?

Microsoft (NASDAQ: MSFT) reported spectacular quarterly financial results that pleased stock market investors.

*Stock prices used were the afternoon prices of July 30, 2025. The video was published on August 1, 2025.

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Should you invest $1,000 in Microsoft right now?

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Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Is C3.ai Stock a Buy?

Key Points

  • C3.ai's business has benefited from organizations rushing to adopt AI solutions, such as the U.S. Air Force.

  • The company reached record revenue in its fiscal fourth quarter, and forecasts more sales growth ahead.

  • C3.ai is not profitable, and a change in CEO is on the horizon.

Artificial intelligence (AI) stocks have been hot, and many experienced strong growth in 2025 alone. For example, this year, AI luminaries Nvidia and Broadcom saw shares soar more than 30% and 26%, respectively, through July 28.

But one lackluster AI stock has been C3.ai (NYSE: AI). Its shares are down about 25% this year through July 28. Could the price drop signal an opportunity to scoop up shares at a discount? After all, the global AI market is forecast to expand from $244 billion in 2025 to $1 trillion by 2031, providing a tailwind for C3.ai's business.

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The reality is that evaluating whether to purchase its stock requires digging into the company. Let's delve into C3.ai to help assess if it's a sound investment for the long run.

Close-up of a laptop being used with various icons and the letters "AI" floating above it.

Image source: Getty Images.

A look at C3.ai's business

C3.ai is an enterprise AI applications business servicing the needs of corporate and government organizations. Its customers include the U.S. Department of Defense, Dow Inc., and ExxonMobil.

The company built a network of partnerships to assist in selling its solutions, which includes Microsoft and energy giant Baker Hughes. These alliances resulted in partners closing 73% of the customer agreements signed in C3.ai's 2025 fiscal year, ended April 30.

C3.ai's business model translated into record revenue of $108.7 million, a 26% year-over-year increase, in its fiscal fourth quarter. For the full year, sales grew 25% year over year to $389.1 million.

The company's offerings have proven popular with customers. In May, the U.S. Air Force expanded its contract with C3.ai from $100 million to $450 million to supply predictive analytics that proactively identify aircraft maintenance needs.

In June, Univation Technologies, a Dow subsidiary, adopted C3.ai's predictive maintenance capabilities to deliver to its petrochemical industry customers.

C3.ai's pros and cons

The company's customer wins this year suggest more revenue expansion to come. In fact, C3.ai forecasts fiscal 2026 sales to reach between $447.5 million and $484.5 million, another solid year of growth over fiscal 2025's $389.1 million.

Despite rising sales, C3.ai's business isn't profitable. It ended fiscal 2025 with an operating loss of $324.4 million, deepening from a $318.3 million loss in the prior year. Costs increased from adding employees to support its business growth.

On top of that, a health issue struck CEO Tom Siebel this year, and the company is now searching for a successor. This is unfortunate news, and it contributed to the decline in C3.ai's share price. The stock price drop is understandable, since a leadership change risks disrupting the company's future success.

However, C3.ai is striving to cut costs and strengthen its finances. Management expects to be free-cash-flow (FCF) positive by next year. It ended fiscal 2025 with negative FCF of $44.4 million, which is an improvement over the previous year's $90.4 million in negative FCF.

Its balance sheet shows C3.ai is well capitalized with total assets of $1 billion, $742.7 million of which represent cash, cash equivalents, and short-term investments. Total liabilities were $187.6 million.

Deciding whether to buy C3.ai stock

Although C3.ai isn't profitable, its strategy to prioritize business expansion over immediate profit follows a typical approach adopted by many companies in the technology sector. As long as year-over-year revenue growth remains strong and it continues to improve its financials, such as reaching positive FCF, C3.ai's operating loss isn't a major concern.

The impending departure of its CEO is regrettable, but Siebel intends to continue shepherding the company as executive chairman. This positions C3.ai for a smooth leadership transition.

With plenty of positives in its favor, does this mean now is the time to buy C3.ai's shares? To answer that, here's a look at its stock's price-to-sales (P/S) ratio with a comparison to Microsoft's, given Microsoft sells C3.ai's offerings, and is a prominent AI business in its own right.

AI PS Ratio Chart

Data by YCharts.

The chart reveals C3.ai's valuation has significantly improved, as evidenced by the substantial drop in its P/S multiple from its late 2024 peak. This multiple is now considerably lower than Microsoft's, further highlighting C3.ai's attractive valuation.

This, combined with growing sales, a robust balance sheet, and strengthening free cash flow, makes C3.ai stock a compelling investment opportunity.

Should you invest $1,000 in C3.ai right now?

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Robert Izquierdo has positions in Broadcom, C3.ai, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool recommends Broadcom and C3.ai and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

3 Reasons to Buy Medtronic Stock

Key Points

  • Medtronic is separating out its lower-margin diabetes care segment.

  • It's also pouncing on a massive opportunity in robotic-assisted surgery.

  • The healthcare leader has a terrific dividend-growth track record.

Medical device specialist Medtronic (NYSE: MDT) has not been the best of investments over the past five years. The stock has significantly lagged the market over this period, thanks to weak business fundamentals, including slow revenue growth. The healthcare giant now faces additional obstacles, such as the threat of steeper tariffs due to President Donald Trump's aggressive trade policies.

Even amid all that, Medtronic has plenty of redeeming qualities and could still be a solid investment for long-term investors. Here are three reasons why.

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1. Medtronic is spinning off its diabetes care unit

Medtronic recently announced that it will be spinning off its diabetes care unit, which will become a stand-alone, publicly traded company. Although sales of diabetes products have been growing faster than the rest of Medtronic's business, they have also been a drag on margins. During the company's fiscal year 2025, which ended on April 25, diabetes care accounted for 8% of revenue but only 4% of operating profits. Medtronic's other segments are not growing their sales as quickly, but they have more profitable margins.

In an environment where the company may face higher manufacturing costs due to tariffs, management has chosen to focus on higher-margin opportunities. Diabetes care was also the healthcare specialist's only consumer-facing business; the others offer products to healthcare providers. The move could help Medtronic navigate the macroeconomic landscape better if Trump's tariffs remain in place. That's especially the case if the company can find other lucrative revenue growth opportunities.

Physicians in an operating room.

Image source: Getty Images.

2. A significant opportunity in robotic-assisted surgery

Medtronic has been developing its robotic-assisted surgery (RAS) system, Hugo, for years. It has been in use in other countries, though it's yet to get the regulatory nod in the United States. The medical device specialist decided to pursue this opportunity because the RAS market is severely underpenetrated. Intuitive Surgical's da Vinci system dominates the field and faces little competition for the range of procedures for which it's approved.

Yet a couple of years ago, Medtronic pointed out that of all the procedures that could be performed robotically, fewer than 5% were. And over the long run, the demand for these kinds of surgeries will increase along with the world's aging population, since seniors are far more likely to face health issues that call for these kinds of interventions. The good news is that Medtronic's Hugo system recently completed clinical trials in the U.S. for urologic procedures. The company has requested clearance from the U.S. Food and Drug Administration for that indication.

It should be the first of many. The Hugo system could eventually become a crucial part of Medtronic's growth strategy and help improve its financial results over the long term, given the significant white space available in the industry.

3. A soon-to-be Dividend King

Despite Medtronic's recent challenges, the company has continued to pay and raise its dividends. In fact, the company has raised dividends for 48 consecutive years. Most businesses don't survive nearly five decades, let alone pay dividends for that long. Medtronic's ability to do so speaks volumes about its underlying business. It's a well-established leader in its niche of the healthcare market, with significant footprint in the industry and a long and successful history of navigating this deeply regulated sector.

All of those factors make Medtronic an excellent pick for income-seeking investors. It should continue rewarding shareholders with payout increases for a long time -- and in two years, it should become a Dividend King.

Medtronic may not be one of the most exciting artificial intelligence (AI) leaders capturing Wall Street's attention, although the company is implementing AI across its business in ways that could pay off in the long run. Regardless, its recent moves in shedding its diabetes care segment and seeking clearance for its Hugo system, along with its consistent dividend streak, make Medtronic a reliable company to invest in for the long haul.

Should you invest $1,000 in Medtronic right now?

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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

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Prosper Junior Bakiny has positions in Intuitive Surgical. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool recommends Medtronic and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy.

Fulgent (FLGT) Q2 Revenue Jumps 16%

Key Points

  • GAAP revenue exceeded expectations in Q2 2025, reaching $81.8 million versus the $76.21 million estimate, Core revenue reached $81.7 million, up 16% year over year.

  • Non-GAAP earnings per share were $0.07, beating analyst expectations of a $(0.18) non-GAAP loss.

  • Full-year 2025 core revenue guidance was raised to $320 million; the company continues to project a loss for the year.

Fulgent Genetics (NASDAQ:FLGT), a genomic testing company focused on precision diagnostics and therapeutic development, reported better-than-expected results in its Q2 2025 earnings release dated August 1, 2025. The company posted GAAP revenue of $81.8 million, comfortably surpassing the analyst consensus GAAP revenue estimate of $76.2 million. On a non-GAAP basis, earnings per share reached $0.07, outperforming the anticipated $(0.18) non-GAAP loss. These results reflected strong momentum in the Laboratory Services business and translated into a raised full-year 2025 core revenue outlook of $320.0 million. However, despite the top-line and non-GAAP earnings outperformance, Fulgent reported a wider GAAP loss due to a one-time impairment. The quarter highlighted revenue growth, margin improvements, and strategic progress, balanced against rising operating expenses and ongoing GAAP losses.

MetricQ2 2025Q2 2025 EstimateQ2 2024Y/Y Change
EPS (Non-GAAP)$0.07($0.18)$0.15(53.3%)
Revenue (GAAP)$81.8 million$76.21 million$71.0 million15.2%
Non-GAAP Gross Margin44.2%40.1%4.1 pp
Adjusted EBITDA($3.0 million)($0.7 million)329%
Cash, Cash Equivalents & Investments$777.5 millionN/A

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

About Fulgent Genetics and Business Model

Fulgent Genetics is a company specializing in precision diagnosis through advanced genetic testing and the development of innovative therapeutics. It operates with two main business pillars: Laboratory Services, which delivers a broad menu of genetic and diagnostic tests using proprietary technology, and Therapeutic Development, which focuses on new cancer treatments using nanoencapsulation platforms for more effective drug delivery.

The core strength of the company's Laboratory Services is its ability to rapidly develop and launch genetic tests. This flexibility allowed Fulgent to respond during the COVID-19 pandemic and now positions it to meet demands in reproductive health, carrier screening, and rare disease diagnostics. Its key areas of focus include product innovation, expanding partnerships, and compliance with healthcare regulations.

Quarterly Developments and Segment Performance

The quarter was defined by robust growth in Laboratory Services, which continues to drive the majority of the company’s revenue. Core revenue reached $81.7 million, up 16% year over year, with COVID-19 testing making up a negligible portion. Management credited reproductive health diagnostics, expanded carrier screening under its "Beacon" product family, and strong legacy test volumes as central to this growth. New client wins, such as contracts with the U.S. Department of Veterans Affairs and Foundation Medicine, are expected to provide upside and contribute to market share gains as onboarding progresses.

Significant investments in digital pathology also stood out. The switch to digital slide processing and growing use of artificial intelligence (AI) in laboratory workflow were noted as productivity enhancers. Digital pathology allows remote reading of sample slides, increasing recruitment possibilities for specialized pathologists and helping improve turnaround times.

In the Therapeutic Development segment, Fulgent pressed forward with clinical trials for cancer drug candidates based on its nanoencapsulation technology. FID-007 is undergoing a phase 2 trial, and FID-022 is entering phase 1. Both represent longer-term potential. Clinical investments in these programs draw on the company's sizable cash reserves and represent a future growth lever.

The biopharma services division also expanded, offering a broader range of services to pharmaceutical clients. Revenue from anatomic pathology (the laboratory analysis of tissue samples for disease diagnosis) returned to year-over-year growth after prior investment in digital systems and new sales hires. Management acknowledged that sequential fluctuations are likely, particularly in biopharma services, due to the project-based nature of client work.

Profitability and Financial Position

Gross margin improved to 44.2% (non-GAAP), up from the margin in the prior-year period. Adjusted EBITDA, a measure of operating profit excluding certain costs, was a loss of $3.0 million, widened versus the same period last year.

GAAP net results showed a larger loss because of a $9.9 million one-time, non-cash asset impairment. General and administrative, as well as sales and marketing expenses, each rose, reflecting ongoing investments across both major business lines. The company continued to repurchase its own shares, buying back approximately 130,000 shares for $2.2 million and totaling $110.4 million in buybacks since March 2022. Total liquidity stood at $777.5 million in cash, cash equivalents, restricted cash, and investments in marketable securities as of the end of the quarter, supporting both pipeline development and potential further share repurchase activity.

Looking Ahead: Management Guidance and Investor Considerations

Management raised its FY2025 core revenue outlook to $320 million, a $10 million increase from previous guidance, citing strong order momentum and new client wins. The company now expects a GAAP loss of approximately $(2.10) per share for FY2025, reflecting the one-time impairment taken in the second quarter, and projects a smaller non-GAAP loss of $(0.35) per share for FY2025. The cash balance is forecast at approximately $770.0 million as of December 31, 2025, after accounting for continued investments and potential buybacks.

Fulgent does not currently pay a dividend. Areas for investors to track in coming periods include progress in the clinical pipeline and responses to industry regulatory changes. Management also continues to monitor developments around laboratory-developed test regulations, which may impact future operations and compliance requirements.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

Where to invest $1,000 right now

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JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends Fulgent Genetics. The Motley Fool has a disclosure policy.

3 Best AI Stocks to Buy in August

Key Points

  • A European AI infrastructure company is quietly outgrowing established cloud giants with purpose-built technology and strategic positioning.

  • The productivity software leader is successfully monetizing AI integration across its massive user base, while competitors struggle with adoption.

  • The social media giant's AI investments are already paying dividends in advertising revenue even as it pursues ambitious superintelligence goals.

Artificial intelligence (AI) is one of the most transformative technologies of our time, driving unprecedented advancements in sectors ranging from healthcare and transportation to communications and beyond. For investors, this creates a landmark opportunity to back the companies at the forefront of this revolution.

As we head into August, three companies in particular stand out for their strategic positioning and potential for growth in the AI space.

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The European dark horse with massive ambitions

Nebius Group (NASDAQ: NBIS) is emerging as a serious contender in the AI infrastructure race. The Amsterdam-based company, led by former Yandex founder Arkady Volozh, reported staggering 385% year-over-year revenue growth in Q1 2025, reaching $55.3 million, driven primarily by demand for its AI infrastructure services. The stock has surged 92% year to date as investors begin to take notice.

What sets Nebius apart is its vertically integrated approach. Rather than retrofitting general-purpose cloud infrastructure for AI workloads, Nebius builds custom hardware and software specifically for intensive AI training and inference.

The company expects to reach $750 million to $1 billion in annual recurring revenue (ARR) by the end of 2025. Backed by 94% low-carbon electricity and a Europe-first strategy, Nebius is positioning itself as a credible long-term alternative to the U.S. hyperscalers, making it one of the most compelling buy-and-hold plays in the AI infrastructure space.

The productivity powerhouse monetizing AI at scale

Microsoft (NASDAQ: MSFT) stands out as the most pragmatic AI play in tech, with shares up roughly 24% year to date. In fiscal year 2025, the company reported that Azure and other cloud services generated more than $75 billion in revenue, marking a 34% year over year increase. Microsoft also posted $76.4 billion in total revenue for its fiscal fourth quarter, beating analyst expectations and pushing shares to new highs.

Microsoft's strength lies in its integration strategy. Rather than launching stand-alone AI tools, the company has embedded Copilot across its core productivity suite, contributing to measurable growth across Microsoft 365 and cloud services. Teams Phone adoption surpassed 20 million users, and Copilot-enabled services now reach more than 100 million.

With over a billion users across Office and Windows, Microsoft has unmatched distribution for scaling AI tools globally. The company plans to invest $30 billion this quarter alone in AI-enabled infrastructure, reinforcing its leadership in both profitability and long-term platform dominance.

What's the bottom line? While others race to catch up, Microsoft is already cashing in, turning its massive installed base into the most profitable AI deployment machine on the planet.

The advertising giant reimagining social with superintelligence

Meta Platforms (NASDAQ: META) is taking the most aggressive swing at AI integration, with shares climbing 29% year to date after a blowout Q2. Total revenue hit $47.5 billion, up 22% from the prior year, with advertising contributing $46.6 billion and outperforming expectations. CEO Mark Zuckerberg's push to embed "personal superintelligence" across its platforms is beginning to show measurable traction.

Advanced AI tools are powering more precise ad delivery and improved monetization, while the company's $14.3 billion stake in Scale AI signals an intent to anchor the next generation of core models. Daily engagement remains strong, with 3.48 billion people using Meta's apps each day as of June 2025, a 6% year-over-year gain.

Meta lifted its full-year capital expenditure forecast to between $66 billion and $72 billion, largely to support AI infrastructure and training. But with profit engines running at full speed and unmatched insight into user behavior, Meta is gearing up to dominate the global attention economy.

The AI infrastructure build-out is just beginning

These three companies represent distinct strategies in the ongoing AI hyperbuild. Nebius offers pure-play infrastructure exposure with a European edge; Microsoft delivers integrated productivity gains with immediate monetization; and Meta combines massive social scale with leading-edge AI development. For long-term investors, holding all three offers a balanced way to capture the full spectrum of AI-driven value creation.

Should you invest $1,000 in Nebius Group right now?

Before you buy stock in Nebius Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nebius Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,257!*

Now, it’s worth noting Stock Advisor’s total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of July 29, 2025

George Budwell has positions in Microsoft. The Motley Fool has positions in and recommends Meta Platforms and Microsoft. The Motley Fool recommends Nebius Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

nVent (NVT) Q2 EPS Up 28 Revenue Up 30

Key Points

  • Adjusted EPS surged 28% to $0.86, topping the $0.79 analyst estimate (non-GAAP) and exceeding expectations by 8.9% on a non-GAAP basis.

  • Revenue (GAAP) climbed 30% to $963 million, beating consensus by 6.0% (GAAP revenue) and reflecting both organic and acquisition-driven growth.

  • Operating margins and free cash flow declined from the prior year, primarily due to acquisition mix and tariff costs.

nVent Electric Plc (NYSE:NVT), a global provider of electrical connection and protection solutions for infrastructure and industrial markets, published its second quarter 2025 earnings on August 1, 2025. The headline news was a significant beat on both adjusted earnings per share (EPS) (non-GAAP) and revenue (GAAP). Adjusted EPS reached $0.86, up 28% (non-GAAP), outperforming the $0.79 consensus forecast for adjusted EPS (non-GAAP). Reported revenue grew to $963 million (GAAP), outpacing the $908.38 million GAAP estimate and up 30% year-over-year. Most of this growth was driven by large acquisitions in power utilities and data centers, as well as robust product launches. Despite this, both reported and adjusted operating margins (return on sales) and free cash flow (non-GAAP) declined year-over-year. Overall, the quarter demonstrated nVent’s ability to deliver on its growth strategy, but also surfaced challenges in margin management and cash flow.

MetricQ2 2025Q2 2025 EstimateQ2 2024Y/Y Change
EPS (Non-GAAP)$0.86$0.79$0.6728%
Revenue (GAAP)$963 million$908.38 million$740 million30%
Free Cash Flow (Non-GAAP)$74 million$101 million(26.7%)
Adjusted Operating Income$200 million$169 million18.3%
Adjusted Return on Sales20.8%22.9%(2.1) pp

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

About nVent Electric Plc and Its Strategy

nVent Electric Plc designs and manufactures products that connect and protect electrical systems. Its portfolio includes enclosures, electrical connections, and engineered solutions that serve industries such as data centers, utilities, renewables, and industrial automation. The business supports the growing need for safe and reliable power across global infrastructure.

The company’s current strategy focuses on acquiring businesses that expand its reach in the rapidly growing sectors of electrical infrastructure, data centers, and renewable energy. nVent has made several large acquisitions, including ECM Industries and Trachte, to bolster these offerings. Key to success are continued innovation, reliable supply chain channels, and operational efficiency using lean principles. A strong culture of employee engagement also supports its long-term strategic aims.

Quarter Highlights: Financial and Operational Drivers

The second quarter featured standout headline growth, with reported revenue up 30%. Organic sales growth, which strips out the effects of acquired businesses and currency, was 9%. Acquisitions contributed 20.7 percentage points to the reported growth, while currency effects were negligible. This growth strategy has intentionally shifted nVent’s business mix toward longer-cycle, high-growth infrastructure domains. As a result, power utilities and data centers now make up an estimated 40% of overall company sales.

Earnings (non-GAAP) also exceeded expectations. Adjusted EPS climbed to $0.86, an 8.9% beat over consensus and a 28% year-over-year increase. Adjusted operating income also rose by 18%. These gains were supported by strong performances in newly acquired product families like control buildings, bus systems, and switchgear. These are essential systems for managing power distribution and supporting growth in sectors like data centers, power utilities, and renewables. Across product lines, the business launched 35 new offerings in Q1, aiding both organic growth and the company’s push into sustainable, electrification-focused markets.

While sales momentum was clear, profitability faced pressure. Both operating margin (GAAP) and adjusted return on sales (non-GAAP) dropped from a year earlier -- the adjusted return on sales margin (non-GAAP) fell to 20.8% from 22.9%. This reduction was attributed to margin dilution from acquisitions, additional costs from tariffs, and investments to support second-half growth. The impact was seen across both major segments. Systems Protection’s adjusted return on sales reached 21.7%, down 1.8 percentage points, while Electrical Connections adjusted return on sales fell to 28.7%, down 2.2 percentage points year-over-year.

Free cash flow (non-GAAP) was $74 million, declining from $100.6 million in Q2 2024. However, the company continued balanced capital allocation, including $253.1 million in share repurchases year-to-date as of Q1 and a dividend of $0.20 per share, which was a 5% increase from the prior year.

Business and Product Developments

Strategic acquisitions remained central to nVent’s expansion this quarter. The integration of Trachte -- a provider of control building systems -- and Avail EPG enhanced nVent’s capabilities in high-growth sectors like utilities and data centers. According to management, both acquisitions performed better than expected and contributed to growth synergies. A direct quote from leadership noted: “The Trachte and Electrical Products Group acquisitions performed better than expected, further strengthening our position in the high growth infrastructure vertical, including power utilities, data centers and renewables.”

Product innovation was another highlight. The company introduced 35 new products in the quarter, helping drive double-digit growth in orders and backlog in Q1. Many solutions were designed to meet the growing global demand for electrification, sustainability, and digital transformation. The business emphasized opportunities in data centers, renewables, and electrical grid expansion, with new products tailored for improved energy efficiency and resiliency. These launches complemented nVent’s existing portfolio of enclosures and electrical connectors, keeping it aligned with the latest industry trends.

The business relies on an extensive distribution network. Over 60% of nVent’s revenue now flows through distribution partners, providing broad market access. Management reported strong double-digit order growth, particularly in infrastructure segments for Q1. Growing backlog -- now more than a four-fold increase -- has given the company good visibility for the rest of the year.

Operational efficiency is a key part of nVent’s culture, with lean manufacturing practices dating back decades. The company called out the doubling of control building output at Trachte as the result of lean improvements. Management also noted that investments and costs related to tariffs weighed on profit margins, but it expects these to be offset over time through pricing, productivity, and integration benefits as new acquisitions are fully absorbed into operations.

Looking Ahead: Guidance and Focus Areas

nVent raised its full-year 2025 guidance based on strong results and order momentum. Management now expects reported sales growth of 24–26% and organic sales growth of 8–10%. The adjusted EPS (non-GAAP) range was also lifted to $3.22–$3.30, from $3.03–$3.13 previously. For Q3, the business projects reported sales growth of 27–29%, organic growth of 11–13%, and adjusted EPS between $0.86 and $0.88. The company cited its expanded backlog, double-digit order growth, and robust demand in its core infrastructure markets as reasons for its more optimistic full-year outlook.

Investors should keep an eye on several areas in the coming quarters. Management has highlighted a $120 million tariff headwind, with plans to offset these costs through pricing, productivity, and supply chain actions. Margin recovery is a top priority, with expectations that synergy capture and pricing actions will improve profitability in the second half of the year. Additionally, trends toward electrification and digital infrastructure are likely to sustain demand for nVent’s solutions in years ahead.

The quarterly dividend was raised 5% to $0.20 per share, payable in Q3.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Rocket (RKT) Q2 Revenue Beats by 5%

Key Points

  • Rocket Companies beat expectations in Q2 2025, reporting adjusted revenue (non-GAAP) of $1.34 billion compared to the analyst estimate of $1.27 billion.

  • Profitability metrics declined year over year, with adjusted diluted earnings per share falling to $0.04 in Q2 2025 from $0.06 in Q2 2024.

  • The Redfin acquisition was completed, leading to increased adjusted revenue guidance of $1.175 billion to $1.325 billion for Q2 2025.

Rocket Companies (NYSE:RKT), a major U.S. financial technology and mortgage platform, released its second quarter 2025 earnings on July 31, 2025. The most notable headline: it delivered higher-than-expected adjusted revenue and non-GAAP earnings per share (EPS) for Q2 2025, while also completing its major acquisition of Redfin. The company reported adjusted revenue of $1.34 billion, outpacing the analyst consensus of $1.27 billion. Adjusted diluted earnings per share reached $0.04, compared with the $0.03 estimate. However, Profitability metrics such as GAAP net income and adjusted EBITDA declined in Q2 2025 compared to Q2 2024. The company succeeded in building top-line growth in Q2 2025, but faces ongoing competitive and cost pressures. Overall, the quarter showed progress on strategic initiatives, but also highlighted mixed profitability trends.

MetricQ2 2025Q2 2025 EstimateQ2 2024Y/Y Change
EPS (Adjusted, Non-GAAP)$0.04$0.03$0.06(33.3%)
Revenue (Adjusted, Non-GAAP)$1.34 billionN/AN/AN/A
Revenue (GAAP)$1.36 billion$1.30 billion4.6%
Net Income (GAAP)$34 million$178 million(80.9%)
Adjusted EBITDA$172 million$225 million(23.6%)

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

Overview of Rocket Companies’ Business and Focus

Rocket Companies operates as a technology-driven financial services platform, with its core business centered on mortgage origination and servicing. The company is best known for Rocket Mortgage, its digital mortgage lending business, and has established itself as a leader in the fintech space through heavy investment in technology and a scalable operating model. Its broader offerings span from home loans to digital tools supporting home search, refinancing, and servicing.

Recent years have seen Rocket expand its platform aggressively. The company’s main focus areas are technology innovation, brand strength, regulatory compliance, client retention, and competing effectively in the mortgage and broader homeownership market. Proprietary technology and artificial intelligence (AI) tools are central to its strategy, driving productivity gains and efficiency. At the same time, Rocket keeps a close eye on compliance as it operates in a highly regulated sector. The brand’s recognition and continued client satisfaction are critical in an industry where trust and ease of use drive loyalty.

Quarterly Performance: Financials, Integration, and Product Developments

The second quarter of 2025 capped a period of significant operational and strategic change for Rocket. The standout result was top-line growth, with adjusted non-GAAP revenue reaching $1.34 billion in Q2 2025, surpassing expectations by $68 million. This performance benefited from higher loan origination volumes, alongside increased servicing revenue. Key growth drivers included continued investment in AI-powered tools. For example, in Q2 2025, daily refinance client follow-ups increased 20%, and new agentic AI features now handle 80% of earnest money deposit verifications automatically, eliminating about 20,000 hours of manual work annually.

However, profitability came under pressure in Q2 2025 compared to the prior year. Adjusted diluted earnings per share declined to $0.04 from $0.06 in Q2 2024, and Adjusted EBITDA was $172 million, down from $225 million for Q2 2024. GAAP net income dropped sharply year over year in Q2 2025, as Total expenses (GAAP) climbed 20.5% year-over-year. This was driven by higher marketing spend and costs related to the Redfin acquisition. Operating leverage from technology and improved process efficiency partly offset these higher costs, but could not fully overcome the margin compression.

The quarter marked the close of Rocket’s all-stock acquisition of Redfin, a large online real estate marketplace. With Redfin bringing about 50 million monthly active users and a network of over one million listings, Rocket’s homeownership platform is now more vertically integrated. This acquisition expands its reach and enables new offerings, such as Rocket Preferred Pricing, which offers a reduced mortgage rate or closing credits to Redfin users—an example of how cross-brand synergies can provide extra value to homebuyers. Management noted early signs of growth in the purchase funnel and conversion rates tied to these initiatives during Q2 2025.

Mortgage origination, Rocket’s foundational business, continued to see year-over-year growth in volume, with closed loan origination volume increasing from $24,662 million in Q2 2024 to $29,056 million in Q2 2025. Closed loan origination volume reached $29.1 billion, up 18%. The Direct to Consumer channel posted $14.1 billion in sold loan volume, up 8.3% year-over-year, with margins rising to 4.40%. However, the Partner Network—a channel serving outside mortgage brokers and partners—grew sold loan volume to $13.4 billion but saw significant gain-on-sale margin contraction in the Partner Network segment, dropping from 1.59% in Q2 2024 to 0.90% in Q2 2025, and its contribution margin for the Partner Network segment fell 34% to $83 million. This reflects increased competition and pricing pressure in the wholesale mortgage space.

Strategic Shifts, Regulatory Developments, and One-Time Events

Rocket simplified its capital and share structure during the quarter, reducing the number of share classes from four to two. This “Up-C collapse” streamlines financial reporting and should make it easier for the company to use its shares for acquisitions. The move comes as Rocket seeks greater flexibility, including for future mergers and deals. The company also announced it will shut down Rocket Mortgage Canada and discontinue its co-branded Visa credit card, part of a focus on core U.S. mortgage and real estate businesses.

On the regulatory side, Rocket is involved in complex transactions. The Redfin acquisition closed at the start of July, increasing the company’s Class A share float to 12% as of July 1, 2025. Rocket also issued $4 billion in new debt, spreading maturities between 2030 and 2033, with proceeds partly allocated for another pending acquisition—Mr. Cooper, a mortgage servicer.

The quarter’s GAAP expense base, up to $1.336 billion, was notably higher, with elevated investment in marketing, technology, and one-time deal costs. Liquidity remains strong, with a $9.1 billion position as of June 30, 2025, of which $5.1 billion is in cash and equivalents as of June 30, 2025. The company’s servicing portfolio also remains substantial, responsible for a $609 billion unpaid principal balance and about 2.8 million loans as of June 30, 2025, generating approximately $1.6 billion in annual servicing fee income as of June 30, 2025.

Looking Ahead: Guidance, Integration, and Key Metrics

Management provided guidance for Q3 2025, projecting adjusted revenue (non-GAAP) of $1.60 billion to $1.75 billion. reflecting a full quarter of consolidated Redfin results.

Leadership pointed to sequential improvement, emphasizing continued focus on technology, client retention, and operating efficiency. However, no detailed earnings or margin guidance was offered for the remainder of fiscal 2025. Investors are expected to watch for successful Redfin integration, overall origination growth, and cost control as key themes in coming quarters. Macro risks such as a soft housing market and heightened competition remain present, and the company’s elevated expense base will demand continued revenue gains to maintain momentum.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool recommends Rocket Companies. The Motley Fool has a disclosure policy.

8 Quantum Computing Stocks Artificial Intelligence (AI) Investors Should Have on Their Radars. Here's the Best of the Bunch.

Key Points

  • Quantum computing has emerged as one of the most popular opportunities within the AI landscape.

  • Smaller stocks such as IonQ, Rigetti, and D-Wave, have fetched a lot of attention as of late.

  • Yet, there are a host of other opportunities that are also quietly disrupting the quantum arena.

One pocket of the artificial intelligence (AI) realm that continues to gain momentum is quantum computing. So far this year, the Defiance Quantum ETF has posted gains of 15% -- handily outperforming both the S&P 500 and Nasdaq Composite.

While market-beating gains have tempted some growth investors to dive headfirst into the quantum computing revolution, I'd caution that not every opportunity in this area of the AI industry carries the same upside.

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Let's explore eight of the most popular quantum computing stocks right now and determine which ones are the best of the bunch for investors with a long-run time horizon.

Everyone is talking about these four quantum computing stocks, but...

Whenever a new theme begins to emerge within a broader megatrend, investors often try to identify the "next big opportunity." What I mean by that is throughout the AI revolution, investors have been repeatedly reminded of how great the "Magnificent Seven" stocks are.

But now that quantum computing is becoming an increasingly popular topic within the broader AI discussion, more speculative investors are seeking to find new opportunities that could potentially mimic returns similar to those of the Magnificent Seven.

At the moment, four of the most popular quantum computing stocks are IonQ, Rigetti Computing, D-Wave Quantum, and the appropriately named Quantum Computing. While it's tempting to follow outsize momentum, all four of these quantum computing stocks deserve a closer look before investors begin to pour in.

IONQ Chart

IONQ data by YCharts

First, all of these businesses are investing heavily in research and development (R&D) and capital-intensive projects as they explore quantum technology. This is an important nuance for investors to understand. None of these companies is generating significant or consistent revenue yet. This could be considered a risk, as these businesses are not yet offering various product lines that are commercially scaled.

Given the lack of sales coming through the door, it shouldn't be surprising to learn that these small companies are burning through quite a bit of cash -- making long-run liquidity a major concern. For now, each of these quantum computing hopefuls has relied on stock issuances in order to raise funds. Not only is that dilutive to shareholders, but it's not a sustainable method of capital raising in the long run.

All of these quantum computing stocks are trading for valuations far beyond what investors witnessed during prior stock market bubbles. Management may understand this and are taking advantage of frothy conditions to raise as much capital as possible before valuations protract and become more appropriately aligned with the fundamentals of their respective underlying businesses.

Quantum computing reactor.

Image source: Getty Images.

...I like these four magnificent stocks even better

While it may seem a little anticlimactic, I think the most prudent way to invest in quantum computing is through the usual suspects: the Magnificent Seven. Cloud hyperscalers Microsoft, Amazon, and Alphabet have largely been tied to hefty investments in data centers, servers, and chips over the last few years. However, each of these companies has quietly been exploring quantum computing, too.

All three of these Magnificent Seven members have developed their own custom quantum computing chips, called Majorana, Ocelot, and Willow. On top of that, Nvidia (NASDAQ: NVDA) is exploring quantum applications by offering new, extended features of its existing CUDA software system.

The reason that I like big tech over the speculative players above is that each also has a multibillion-dollar business spanning various pockets of the AI realm. In other words, quantum computing represents an extension of an already established footprint.

By contrast, companies such as IonQ, Rigetti, D-Wave, and Quantum Computing are essentially singularly focused businesses whose long-run viability hinge on successful business execution and penetration of the quantum computing industry. If they fail to achieve a critical mass in terms of enterprise-level customers, these companies could quickly run through their remaining capital and be headed toward a path of insolvency.

Which quantum computing stock is the best of the bunch?

At a high level, I think there are merits to owning any of the big tech stocks referenced above. But if I had to choose just one, I'd pick Nvidia as my best quantum computing idea.

I see Nvidia as the most ubiquitous business among megacap technology AI stocks. The company already dominates the data center and chip landscapes, and with more sophisticated use cases across autonomous vehicles, robotics, and now quantum computing starting to emerge, I'm hard-pressed to think of how or why Nvidia won't continue to be a major source powering these applications.

In my eyes, Nvidia has much more room for growth beyond the core chip business in the long run. For this reason, I think Nvidia stock is a no-brainer right now.

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Adam Spatacco has positions in Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

This Is Exactly When You'll Find Out Your 2026 Social Security COLA

Key Points

For retirees who collect Social Security, the announcement of the annual cost of living adjustment (COLA) is a big deal. Social Security benefits are an important income source for millions of Americans, and the government announces a COLA -- a benefits increase -- most years to help benefits retain their buying power even as prices increase due to inflation.

So, when will the Social Security Administration (SSA) announce how large of a raise seniors are on track for in 2026? Here's what you need to know.

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Two adults looking at financial paperwork.

Image source: Getty Images.

This is when the 2026 cost of living adjustment will be announced

For retirees eager to find out how big their benefit increase is going to be in 2026, you'll have to be patient. The Social Security does not announce how big the COLA will be until mid-October.

There is a reason why October is the key month. The cost of living adjustment is based on year-over-year changes to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures the costs of a specific basket of goods and services.

The SSA calculates the COLA by taking into account third-quarter CPI-W data from the Bureau of Labor Statistics. The third quarter includes the months of July, August, and September.

When September's CPI-W data becomes available in October, the SSA will compare the third-quarter average to the same period a year ago. Any year-over-year increase becomes the COLA. For example, if the data shows that prices have gone up an average of 2.5% over the course of those three months, then retirees would be in line for a 2.5% raise.

There are estimates out already for seniors eager to know what the 2026 COLA will be

It may be frustrating to find out that it's going to be several more months until you know how big your benefits increase will be, especially if you are counting on Social Security to help you cover the essentials. You may be feeling the pinch right now and want to know if you'll have more breathing room in your budget next year.

The good news is estimates already exist to give you some insight into how big of a benefits bump is likely coming. Data from the first six months of the year can indicate how inflation is trending. Based on currently available data, the Senior Citizens League (a senior advocacy group) is predicting a 2.6% COLA for 2026. This prediction has been trending upward, as the group previously expected a 2.5% COLA.

While these projections can change, retirees at least have something to go on as they estimate what their budget will look like next year. The official COLA for 2026 will come out on Oct. 15.

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