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Meta stock drops 10% as free cash flow gets crushed—and Zuckerberg hints at cloud business



The AI trade is coming to a realization: America’s best businesses are turning into utilities.

Such is the fate that befalls Meta, whose shares fell as much as 10% in after-hours trading Wednesday after the company missed earnings owing to costs ballooning 55% (Meta’s stock later recovered some ground and was down 7%). Its operating income fell 8%, net income dropped 14%, and it barely eked out $784 million of free cash flow—just narrowly missing falling into negative territory and well below the roughly $12 billion in free cash flow the company has averaged over the previous eight quarters.

Meta’s revenue in Q2 was up 28% from a year earlier, beating expectations, but operating income for Family of Apps, the segment containing Facebook, Instagram, WhatsApp and Messenger, fell to $23.4 billion from $25.0 billion.

So its core business grew revenue but made less money doing it.

And the money that the company is earning is immediately being used—with most of it not going to investors. The reason why is the term investors have come to love to hate: capex. Capital expenditure is now up to $31.1 billion in the quarter, nearly double the amount spent a year earlier. Operating cash flow came to $31.9 billion; in other words, the company spent almost every dollar its businesses could generate on AI infrastructure: servers, data centers, network infrastructure, and chips. 

Meta has always had to invest in the data centers that serve its popular social networking services for people all over the world. But the massive amount of computing power necessary to train and run AI models has supercharged the level of investment, upending the financial model in which Meta’s lucrative advertising business allowed it to stockpile cash.  This new Meta, like its hyperscaler peers, must build multibillion-dollar data centers at a nonstop pace, acquiring land, securing power, purchasing chips, running cooling systems, and replacing machines that become obsolete within years (Depreciation and amortization in the second quarter rose 46% year over year to $6.4 billion). 

Its rivals, Microsoft, Amazon, and Google, have created an escape hatch for themselves, renting that infrastructure to outside customers through enormous cloud businesses. That allows them to generate immediate revenue from their cloud investments. Indeed, Microsoft was enjoying its stock rising almost 2% from that cloud growth after Wednesday’s close of market as Meta CEO Mark Zuckerberg fielded questions from analysts wondering why his company wouldn’t do the same.

Zuckerberg acknowledged the potential to generate additional revenue by renting its computing infrastructure to other companies, and confirmed that Meta has plans to get into the cloud business, promising an update soon. “We’re getting a lot of offers for compute at a significant premium for what we paid for it,” Zuckerberg said.

But he framed the opportunity as more of a side quest than a core business, and said that he believed the real value is in offering its own AI services on top of its infrastructure. “It would be foolish to basically just sell all of the compute and take a short-term profit,” Zuckerberg said. He added the company expects “a significantly higher margin on selling intelligence rather than selling compute directly.”

The intelligence Zuckerberg referred to is a full stack of businesses Meta hopes to build: an ad system that AI has made 15.7% better at converting; agents that could answer customer messages for a million businesses; an API selling access to Meta’s models; and, most mysteriously, a personal assistant working 24/7 to build a profile of a user’s health, finances, and relationships, which does not exist yet. “There’s only so much that I can say on an earnings call about this,” Zuckerberg said.

In the meantime, the company has transitioned its financing. Meta issued $24.9 billion of long-term debt during the quarter and bought back no stock, after repurchasing more than $10 billion a year earlier. CFO Susan Li said Meta had been deliberately moving toward “a greater mix of debt” to fund infrastructure projects with long lives and expected passive income.

Meta now expects full-year capital expenditures of $130 billion to $145 billion, having raised the floor. It spent $50.9 billion in the first half. That leaves $39 billion to $47 billion a quarter for the rest of the year, against operating cash flow of roughly $32 billion. So it follows that this quarter was the last positive cash-flow quarter this year.

When asked what 2027 would cost, Li declined to say, offering instead that Meta expects to remain demand constrained; that it has more profitable uses for computing power than computing power to use. Zuckerberg, not one to balk before investors, did not choose to hedge this time either.

“My personal bet is that the people who invest in this are going to be rewarded and feel very good over time,” he said.

PennyMac Financial Services earns $22 million in 2Q26


PennyMac Financial Services admitted its second quarter results failed to meet expectations because of high interest rates, as well as funding the technology initiatives in artificial intelligence and automation.

Processing Content

“Although our operational execution remains solid, these results fell short of our expectations as interest rates increased and origination demand declined,” Chairman and CEO David Spector said on the earnings call Wednesday. “To address these rate headwinds, we have already taken proactive steps to align our cost structure with current market conditions and the operational capabilities provided by recent enhancements to our technology platform.”

Why Pennymac laid off staff

Earlier in the day, it was learned via a report in HousingWire that Pennymac recently undertook a round of layoffs.

The company confirmed the report but did not provide any additional details.

In June, it closed the Franklin, Tennessee branch and made layoffs then.

“Pennymac has executed well against a challenging backdrop, even as sustained high interest rates have reduced industry loan volumes and the size of the addressable market,” the company statement about the most recent layoffs read. “As we align our operations accordingly, the organization has made the difficult decision to eliminate select positions within its lending and mortgage fulfillment operations.”

The company added it is committed to supporting its team members through the transition, including providing severance support.

“As we move forward, Pennymac remains focused on building an even stronger organization, including continued investment in technology and automation to improve how we serve customers and support our people,” the statement continued. “Together with our disciplined approach, these investments strategically position us to grow and create new opportunities as the market recovers.”

Why Pennymac’s earnings were lower

Second quarter net income at PFSI was $22 million. This was 74% below first quarter net income of $82 million and 84% under last year’s $136 million.

Pennymac is seeing “a perfect storm,” where it is investing a lot in the future with technology, combined with high interest rates, affecting its results, Spector said.

Annualized adjusted return on equity was 7% for the quarter, a range Spector expects it to remain at as Pennymac reduces its expense base. “The cost realignments we executed this month are expected to generate approximately $60 million of annualized cost savings, which will begin to be realized in the third quarter,” he said.

How its origination business performed

It had a total of $34.9 billion of mortgage originations and acquisitions during the quarter, compared with $37 billion in the first quarter and $37.9 billion one year ago. This was below both Wall Street and BTIG estimates for the quarter.

The correspondent business had $22.3 billion of acquisitions for both its own account and for sister company PennyMac Mortgage Investment Trust. This was down from $24.4 billion in the first quarter and $29.8 billion one year ago.

During the call, Pennymac management said the competitive landscape in the correspondent channel was responsible for the drop off and this is continuing into the current quarter.

“In July, correspondent volumes were down versus second quarter levels, reflecting our pricing discipline in a competitive environment and our continued focus on allocating capital to drive optimal returns,” Dan Perotti, chief financial officer, said during the call.

Later in the call, Spector noted the increased competition for whole loans, including from the government-sponsored enterprises’ cash window. “But I wouldn’t read too much into the correspondent decline,” he said.

While PMT will continue to acquire non-agency mortgages through the correspondent channel, in June it decided to stop purchasing agency-eligible paper, Perotti said.

The broker channel grew to $7 billion from $6.7 billion one quarter ago and $5.3 billion one year ago.

While consumer direct doubled year-over-year to $5.6 billion from $2.8 billion, it was down slightly from the first quarter when the channel did $6 billion.

Production segment pretax income was $38 million. This is down from $134 million in the prior quarter and $58 million a year ago.

How Pennymac’s servicing business did

For the servicing business, pretax income of $22 million was up from $13 million in the prior quarter but down from $54 million in the second quarter of 2025. The most recent results include a $77 million decline in the fair value of its mortgage servicing rights, net of hedges and costs.

The company is in the process of acquiring Cenlar’s subservicing business.

Pennymac is making moves to bring its technology expense down in a meaningful way, and it is even before adding the benefits from Cenlar, Spector said.

“As we bring the Cenlar clients onto our platform, we’re going to get the efficiencies that come from being a higher cost platform to a lower cost platform,” he continued.



The Smartest Thing About DoorDash’s New Drone Strategy Might Have Nothing to Do With Drones



Sending deliveries by drone is hard. DoorDash’s secret sauce may be its software.

Where to Invest Small Amount of Money



Where to Invest Small Amount of Money
Answered by Warren buffett on how he will invest with small amount of money.

source

Best 12-Month CD Rates for July 29, 2026: Up to 4.15%


Certificates of deposit (CDs) have seen rates rising even more, despite major banks lowering the rates on theri savings accounts. 

As of July 29, 2026, the best 12-month CD rates reach up to 4.15% APY (annual percentage yield), with many banks and credit unions still offering yields far above the national average of 1.68%, according to the FDIC. 

Over the last several weeks, rates have been rising slightly.

Now might be the best time to lock in a guaranteed rate. If you’re looking to earn a predictable return over the next year, these are the best CD rates available today.

💰 Today’s Best 12-Month CD Rates At a Glance

Here are the best bank and credit union savings accounts rates today:

Bank or Credit Union

Top APY

Minimum Deposit

American First Credit Union

4.15%

$1

Credit One Bank

4.15%

$100,000

Live Oak Bank

4.10%

$2,500

Rising Bank

4.05%

$1,000

Barclays Bank

4.00%

$0

1. American First Credit Union – American First Credit Union is currently offering a 12-month CD in partnership with Raisin at 4.15%, with just a $1 minimum deposit. Read our full American First Credit Union Review.

2. Credit One Bank – Credit One Bank is offering a jumbo CD at 4.15% APY, but it does require a $100,000 minimum deposit to open.

3. Live Oak Bank – Live Oak Bank is currently offering a 12-month CD at 4.10% APY with a $2,500 minimum to open. Read more about Live Oak Bank here.

4. Rising Bank – Rising Bank is currently offering a one year CD at 4.05% APY, with just a $1,000 minimum deposit to open. Read our full Rising Bank review.

5. Barclays Bank – Barclays Bank is currently offering a 12-month CD at 4.00% APY with a $0 minimum deposit. Read our full Barclays Bank review.

You can find a full list of the best 12-month CDs here >>

How 12-Month CDs Work

A 12-month certificate of deposit pays a fixed interest rate for one year in exchange for keeping your money on deposit until maturity. If you withdraw early, the bank charges a penalty – typically 90 days of interest.

CDs appeal to savers who prefer guaranteed, short-term returns. While high-yield savings accounts offer flexibility, CDs can secure a higher fixed return for a set period, which can be helpful if rates are expected to decline.

For example, a $25,000 CD at 4.00% APY would earn roughly $1,000 in one year, compared with about $420 based on today’s national average 12-month CD rate.

What To Know Before Opening A CD

Certificates of deposit operate differently than savings accounts. Make sure you understand what you’re getting:

  • Short-Term Goals: Ideal for saving toward tuition, a wedding, or a home down payment within a year.
  • Rate Protection: A CD locks your APY, so you’re insulated from rate cuts.
  • Ladder Strategy: Pair a 12-month CD with longer terms (24- or 36-month) to capture higher rates while maintaining liquidity.
  • Safety:
    FDIC or NCUA insurance protects up to $250,000 per depositor, per institution.

Before opening an account, make sure you understand all the terms:

  • Minimum Deposit: Some banks require $1,000 or more to open.
  • Withdrawal Terms: Review penalties before committing funds.
  • Renewal Policy: Many CDs automatically renew at maturity unless you opt out.
  • Rate Guarantees: Confirm whether your rate is locked at the time of application or funding.
  • Online Access: Ensure the bank allows easy transfers and e-statements.

How We Track And Verify Rates

At The College Investor, our editorial team reviews CD rates daily from more than 30 banks and credit unions nationwide. We confirm every APY directly from official rate disclosures and regulatory filings.

Only FDIC- or NCUA-insured institutions available to U.S. consumers are included.

Our rankings are editorially independent – compensation does not influence placement. While we may earn a referral fee when you open an account through some links, our reviews and recommendations are based solely on yield, accessibility, and overall customer experience.

FAQs

Are 12-month CDs safe?

Yes. CDs are federally insured up to $250,000 per depositor, per institution.

Can I withdraw my money early?

Yes, but you’ll forfeit some interest, typically three months’ worth.

Are CD earnings taxable?

Yes. Interest earned is subject to federal income tax, and in some states, state tax.

What happens when a CD matures?

You’ll usually have a 7- to 10-day grace period to withdraw or renew your funds.

Is now a good time to open a CD?

Rates remain near their cycle highs, so locking in a short-term CD can make sense before potential cuts.

Editor: Colin Graves

Reviewed by: Richelle Hawley

The post Best 12-Month CD Rates for July 29, 2026: Up to 4.15% appeared first on The College Investor.

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Oklo vs. Plug Power: Which Utilities Stock Is a Better Buy in 2026?


Are you seeking the future of clean energy? Choosing between Oklo (OKLO -6.92%) and Plug Power (PLUG -3.06%) involves weighing a pre-revenue nuclear developer against an established hydrogen player struggling with profitability.

Oklo focuses on small modular reactors to provide localized power, while Plug Power builds a comprehensive hydrogen network for industrial use. Both companies are navigating a shifting energy landscape, making them favorites for investors interested in high-growth, high-risk opportunities within the green energy transition.

OKLO & PLUG: Performance Comparison

Key Financial Metrics

Oklo Stock Quote

OKLO Oklo

$36.84

6.92% ($2.74)

Market Cap

$6.9B

52wk Range

$36.61 – $193.84

P/E Ratio

-47.09

EPS (TTM)

$-0.84

Plug Power Stock Quote

PLUG Plug Power

$1.90

3.06% ($0.06)

Market Cap

$2.7B

52wk Range

$1.39 – $4.58

Gross Margin

-2565.51%

P/E Ratio

-1.51

EPS (TTM)

$-1.30

The case for Oklo

Oklo designs advanced fission power plants and nuclear fuel recycling systems to provide clean energy. It aims to sell reliable power to data centers and military bases through long-term contracts. One key deal involves a project with Meta Platforms for an Ohio data center, though customer concentration like this adds a layer of risk.

In FY 2025, it remained in the pre-commercial development phase with $0 in revenue. It reported a net loss of nearly $105.7 million during this period, which is common for early-stage energy technology firms. This loss widened from approximately $73.6 million in the previous fiscal year while the company expanded its research efforts.

As of its December 2025 balance sheet, the debt-to-equity ratio was 0.0x, meaning it carries no debt. The current ratio, which measures the ability to pay short-term obligations with liquid assets, was roughly 49.1x. For the fiscal year ended in 2025, free cash flow was negative $115.4 million, which represents the cash remaining after paying for operations and equipment.

The case for Plug Power

Plug Power provides a hydrogen ecosystem including production and fuel cells for heavy industry. It serves major logistics players, with Walmart accounting for approximately 24% of its consolidated revenue. Customer concentration like this adds a layer of risk to the business, though it is focusing more on the industrial stocks arena.

In FY 2025, revenue reached nearly $709.9 million, representing revenue growth of approximately 12.9% year-over-year. Despite this growth, the company recorded a net loss of close to $1.6 billion for the year. The net margin, which is the percentage of revenue left as profit after all expenses, was negative 229.8%.

On its December 2025 balance sheet, the debt-to-equity ratio was roughly 1.0x, indicating debt and equity are equal. The current ratio was approximately 2.3x, suggesting the company has enough short-term assets to cover its immediate liabilities. Free cash flow for FY 2025 was negative $661.5 million, highlighting that it still spends more on equipment and operations than it brings in.

Risk profile comparison

Oklo faces significant regulatory hurdles as it requires licenses from the Nuclear Regulatory Commission. Delays in these approvals or changes in federal policy could stall its entire business plan. The company also depends on securing specialized fuels that are currently in short supply and competes with established players like Cameco.

Plug Power struggles with liquidity, needing frequent capital raises to fund its ongoing net losses and operational costs. It is also involved in securities litigation regarding its financial disclosures and Department of Energy loans. Furthermore, the company is vulnerable to supply chain issues for metals like iridium and competition from Air Products and Chemicals.

Which stock would I buy in 2026?

I’d go with Oklo, but this is a speculative pick, not a safe one. Both companies are asking investors to bet on a clean energy future that hasn’t fully arrived yet.

Plug Power is actually the more established business. Revenue is growing, margins are improving rapidly, and management is targeting positive EBITDA by year-end. That progress is encouraging after years of disappointing results. But Plug Power has been promising profitability for a long time, and the stock has destroyed enormous amounts of shareholder value over the past several years. Rebuilding that trust takes more than one good quarter.

Oklo is earlier stage, pre-revenue in any commercial sense, and years away from selling electricity. But the long-term thesis is more differentiated. Advanced nuclear is gaining serious momentum as a solution for AI data centers and energy security, and Oklo’s integrated model (building, owning, and operating its reactors) creates a potentially durable business once it scales.

For a patient investor with a long horizon, Oklo’s upside is more attractive.

How to Build a Referral Marketing System in the AI Era


Something odd is happening in marketing right now.

Output is way up. Results are down. Business owners tell me they’re publishing more content, sending more email, and running more outreach than ever, and the phone rings less than it did 2 years ago.

Here’s what I think is going on.

The great flattening

AI made competent marketing cheap. Any business can now produce a decent blog post, a polished cold email, and a professional-looking ad campaign in an afternoon.

So everyone did.

The result is a flood of marketing that all sounds the same. Buyers can’t tell who’s good anymore because everyone looks good on paper. And when everything looks professional, professional stops meaning much.

Two more shifts pile on. Ad costs keep climbing, and I don’t need to quote a stat you’ve already felt in your own budget. And buyers are doing more of their research inside AI assistants. They ask ChatGPT or Claude who to hire, get a summarized answer, and may never see your website at all.

Add it up and the channels most businesses depend on for new customers (content, ads, outbound) are getting louder, pricier, and less believable all at once.

The half of the journey nobody can automate

I’ve taught the Marketing Hourglass for 2 decades: Know, Like, Trust, Try, Buy, Repeat, Refer. Unlike a funnel, it widens back out after the sale, because the customers you keep and the fans you create are where the best growth comes from.

AI just made that second half a lot more valuable.

Anyone can generate Know, Like, and Trust content now. A delivered experience still has to be earned. So does a customer telling a friend, “hire these people, they took care of us.”

The bottom half of the Hourglass gets built one customer at a time, and that’s exactly why it’s about to become the highest-return part of your marketing.

I wrote this book 16 years ago

In 2010 I published The Referral Engine. The argument was simple: referrals are too important to leave to chance, so build a system that produces them.

Here’s a fact that surprises people. I’m known for Duct Tape Marketing, but The Referral Engine is my best-selling book. It still sells today, 16 years on. Owners have always understood at a gut level how much referrals matter, and the book keeps finding readers because the problem never went away.

What most readers didn’t have back then was urgency. Referrals stayed the nice-to-have channel, appreciated but never built for, because ads and SEO and email were working fine.

They’re working less fine now. And the ideas in that book turned out to be built for this exact moment. Here are the ones that matter most.

People are wired to refer

Making a good referral feels good. It’s social currency: introducing a friend to a great business makes you look smart and useful. That wiring didn’t change when the tools did.

Which means your customers want to refer you. Most just don’t, because nothing in your business makes it easy, obvious, or timely.

That’s a system problem. System problems have fixes.

A referral system beats a referral hope

Most owners treat referrals like weather. They happen or they don’t.

But a referral system has the same parts as any other marketing system: a clear picture of who you want referred, language your sources can borrow, an offer that makes the referrer look generous, a trigger for when to ask, and a way to track what came in.

Here’s the part that’s new. Follow-through used to kill referral programs. Somebody had to remember to ask, personalize the thank-you, keep partners warm. AI handles that kind of follow-through well now. The strategy still has to come first, but the old excuse about not having time is gone.

Referability comes before referrals

No tactic fixes an unremarkable business. Before any referral campaign, answer one question: what happens in your business that’s worth talking about?

Close the gap between what you promise and what customers experience. Then engineer one moment worth retelling. The surprise check-in. The problem you fixed before the client noticed it. The onboarding that felt like a welcome instead of paperwork.

Referrals are the byproduct of experience design.

Your best referral source may be another business

Direct referrals come from customers. Indirect referrals come from strategic partners: businesses that serve your exact customer right before or right after you do.

For most B2B companies, the partner engine is the bigger one, and the less built one.

Try this. List the 5 businesses your best customer hired in the 12 months before they hired you. That’s your partner shortlist. Teach those firms exactly who to send you, give them something worth giving away, and send business back on purpose.

I’ll give you a live example from our own shop.

My friend Mike Michalowicz runs a group of business advisors called Prosper. These are the people founders already trust with profit, operations, and the big picture. When one of their clients needs marketing leadership to hit a growth target, guess who gets asked for a name.

We’re working with 3 clients right now who came to us through that group. The engagements are going well, and going well is the whole engine: results for a referred client are what produce the next referral. Just recently, another advisor sent us a new client the same way.

The part worth studying is the order of events. Those first referrals showed up on their own. The system came second. Now we’re debriefing the advisors who send us business to learn what prompted each referral, defining exactly which founders we want sent our way, and building tools an advisor can hand a client the moment marketing comes up in a planning session.

Your business almost certainly has a pattern like this running right now. The work is spotting it, then formalizing it.

And a quick word if you’re a business advisor yourself. When a client needs marketing leadership and you want to hand them a name you can vouch for, that’s the exact gap our advisor partnership fills. See how the advisor partnership works.

The new part: AI is listening to your customers

Here’s what makes a 2010 book feel current in 2026.

When someone asks an AI assistant who to hire, the answer gets assembled from reviews, testimonials, case stories, and mentions scattered across the web. Your customers’ words are the raw material AI uses to describe and recommend you.

Word of mouth now travels machine to machine.

That turns review generation and testimonial capture into discovery infrastructure. Every satisfied customer is writing part of your AI sales pitch.

Try it yourself. Ask 3 different AI assistants who they’d recommend in your category and your market. Compare what they say to what your best customers say about you. The gap between those two answers is your work.

Where to start

Four moves for this quarter:

  1. Track where your last 10 customers actually came from. Most owners are surprised by how much of their growth is already referral-driven.
  2. Pick one moment in your customer experience and make it worth talking about.
  3. Build your partner shortlist using the exercise above and set up 2 conversations.
  4. Ask for reviews at high points (right after a win, a renewal, a thank-you email) and make it a 30-second task for the customer.

Do it in that order. A referral push with no strategy underneath it is just another random act of marketing.

The businesses that win the next few years will treat the second half of the Hourglass as their primary growth channel and build a system to run it. The good news is that your competitors are all busy generating more content.

Fed decision reaction: What’s next for the mortgage market?


“Clients aren’t necessarily calling about the Fed decision,” Lessard said. “What we’re seeing is a growing number of buyers reaching out to prepare for homeownership. Many are getting preapproved, reviewing their financing options, and putting themselves in a position to act when the right home becomes available.

“Rather than trying to time the market perfectly, they’re focusing on being ready when the opportunity presents itself. I think there’s a growing realization that if mortgage rates improve, competition for homes is likely to increase. Buyers who prepare now will be in a much stronger position than those who wait until rates have already fallen.”

The outbreak of the Iran war in February threw a new curveball into the US housing market outlook, and for many observers a definitive end to that conflict could mark a turning point for a market that’s still struggling to get off the ground this year.

A cautiously optimistic outlook

Lessard said he remains optimistic about the path ahead for the next 12 months, partly because a cooler market is giving buyers a wider range of options and in some cases better purchasing power even despite rate fluctuations.

“While affordability continues to be a challenge for many buyers, we’re starting to see more inventory come to market in many areas, giving buyers more choice and reducing some of the intense competition we’ve experienced in past years,” he said.

Capital One Cafes: Free Handcrafted Drink


Update 7/28/26: Available again, if it doesn’t work for you try a VPN. 

Update 7/25/26: Available again, if it doesn’t work for you try a VPN. 

The Offer

Direct link to offer

  • Capital One Cafes are offering a free handcrafted beverage

 

Our Verdict

These are located in AZ, CA, CO & D.C. FL, GA, IL, MA, MI, MN, MO, NV, NY, OH, OR, PA, TX, VA, and WA A full list can be found here.

Hat tip to SD