Rebels Edge · Thu, May 28, 2026
Drone Stocks EXPLODE After Trump Funding Report
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John and Pete Najarian discussed inflation, falling crude prices, lower volatility, and strong corporate earnings. They highlighted drone-stock gains following a report that Trump was considering funding drone companies, alongside bullish options activity in Unusual Machines, Snowflake, and Kohl's. The episode also covered acquisition prediction markets and closed with NFL and NBA commentary.
- The hosts viewed softer monthly inflation readings and lower crude prices as supportive of markets, particularly if a peace agreement materializes.
- The VIX fell below 16, which they considered consistent with easing oil prices and relatively modest S&P 500 moves.
- Acquisition prediction markets covered Caesars Entertainment, Viking Therapeutics, Zoom, and Snapchat; the hosts expressed differing views on their takeover prospects.
- Snowflake rose about 35% following strong earnings, raised guidance, and an extended $6 billion AWS partnership; the hosts highlighted bullish options activity preceding the move.
- Dollar Tree gained about 17% after beating earnings expectations and raising guidance; discussion also covered store expansion and its DoorDash partnership.
- A report of potential Trump funding lifted drone stocks, including Unusual Machines, Red Cat, Ondas, AeroVironment, Kratos, and AgEagle. Unusual Machines reportedly climbed from roughly $17 to $27 in two days.
- The hosts cited recent bullish options activity in Unusual Machines and Ondas, and 2,000 Kohl's June 5 $14 calls purchased the prior day.
- Strong results from Best Buy and Kohl's were presented as evidence of resilient discretionary spending, contrasting with pessimistic consumer polling.
Full transcript
Welcome back to the Rebel's Edge, where we break down what happens when crude oil prices go up because bombs were coming down. And we'll let you know about Snowflake and this one is an avalanche, folks.
We'll have more on that on today's Rebel's Edge.
>> And there it is.
>> There it is.
Gentlemen, start your engines.
>> That's right. That's right. Last one of the week, John. It's a shortened week.
Last one of the week. Here it is Thursday already.
>> That's right. People are They're going to ask for refunds, Pete, because they only got three shows instead of four.
Welcome back, folks. I'm John the Nagerian and he, of course, is Pete Nagerian over on that side. And we welcome you to the Rebel's Edge, where we give you macro, but we only give it a minute, not 30 minutes like on some of those four-letter networks. And we also tell you what's going on with the VIX,
with prediction markets, with stocks and sports. And we squeeze it all into less than half an hour. So, let's hit it, Pete. I'll say the macro today is core PCE prices rose slightly. Um the Commerce Department said that and while
annual rates were in line with forecasts, soft monthly readings could give some more hope. Hope, Pete. For uh maybe prices peaked last month and maybe they're starting to come back down. And if there's a peace accord, you bet there's going to be prices coming down.
What do you say, Pete?
>> Yeah, and that's what we're waiting on, John. And even though, you know, some of the numbers or whatever, you know, you could you could say, "Well, what about this? What about that?" I think the reality is, okay, inflation's been sticky. We'll acknowledge that, but we are on the, you know, the edge of something very big happening, I think, in the streets. Now, it's a it's a
matter of when it actually occurs and all the rest of it, but the reality is, uh, you know, WTI, a week ago was 108.
Here it is in the low 90s. Uh, it actually got into the upper 80s. And we also had 108, 110. I mean, you know, so we have pulled back on a couple of occasions and, uh, you know, sure, that's part of it and we all know that crude oil, yep, that's a big part of inflation. But, um,
I think we're getting a heck of a lot closer, John, and when that actually happens, we're not going to go back to where we started, I don't think. Not that quickly, but we will start to pull back a little bit and maybe maybe we'll be in the middle 70s, upper upper 70s, something like that. But I think that's something that when that day comes, uh,
the market is going to take off.
>> Well, and isn't that what the VIX is kind of telling you, too, Pete?
>> Right.
>> Because instead of the VIX being double where it is right now, it's one half of where it was a little over a month ago.
>> Yeah.
>> Um, so tell us what you saw today with the VIX.
>> Well, it had been in a pretty tight range right out of the gate, you know, it was up there, John, 16s, in the 16, 16, 15, all the way up to about 1685.
And then it just sort of went and started pulling back. Well, we not only have pulled back, but we're under 16. And, you know, with that just happened within the last 15, 20 minutes, whatever, but nonetheless, underneath 16, um, you know, and and there's so many people on television that that are saying so many things about, "Well,
that's really not right. That's not really. That's not." Well, at some point, something's right. And I would say the fact that we've got crude oil where it is, that tells me why VIX should be where it is, and it makes a heck of a lot of sense. And by the way, we aren't even moving 1% on the S&P. So 16's actually a little high.
>> Yeah, well, um that is of course the square root of 256 folks. The It happens to be 16. That's what the VIX if it's predicting a 1% move in the market.
We're not getting a 1% move today, Pete.
>> No.
>> So, you can understand why it's diving under 16 even at this point.
>> Yeah.
>> All right, prediction markets. Uh Polymarket put this one up, Pete. I thought you'd enjoy it. Which companies will be acquired before 2027? So, you've got basically 7 months uh to decide if this one's going to actually happen.
Caesars Entertainment, Corsa, which we know Corsa Elon Musk is going after it.
And that one's up 67% just in the last little bit, Pete, because of that. It's up to 86% Corsa is. Viking Therapeutics moving up. And Zoom Video Communications also moving down. So, they don't think that one's going to be a acquired before the end of '27. You make
anything out of this, Pete, or any of these on your hit parade?
>> Well, the Caesars is a layup, I think. I I think that that's as much as it it's going to happen.
Um you know, so I'll I'll kick that one off to the side.
Corsa, I don't know enough about. Viking Therapeutic I think is a is a very interesting one. And I am intrigued a little bit with Zoom Video to be honest with you, John. I mean and I know that I see it. It's down 14% down to 38%. But it just seems like something that could very quickly get gobbled up. And that's
why I think that one. Uh those those other Snapchat and those I I don't see that happening at all.
To be honest.
>> All right. Well, Pete, Snowflake um very strong unusual activity yesterday. And uh now we know why. Because Amazon Web Services AWS extended a $6 billion partnership with them, Pete. And
>> Well, that's a pretty big check for somebody to write. And I granted it doesn't happen like, "Oh, here you go." All up front right now, but it's a multi-year deal. And Snowflake, somebody was betting that the stock would be going higher. And those people that made that bet, Pete, they are ringing the
cash register today.
They certainly are, John. I mean, this absolutely amazing run. And you know, up 35% on a stock like this is absolutely incredible. They did have earnings. The earnings itself, they crushed it once again. Who hasn't, right? I mean, it's like 80 plus percent now. And yet, we still get some of this horse manure coming out there saying, "Oh, yeah.
Well, it's this and that." Well, yeah.
The economy is probably not as bad as you think cuz the the real money is showing us exactly what it is. They did raise the full year for 2026, John. 5.84 billion dollars, up 31% year-over-year.
They talked about the trajectory of what they're doing and how strong that is.
There is nothing negative at all about what they did as far as the earnings.
And obviously, this extended partnership you were talking about with AWS, I mean, $6 billion. Holy smokes. That's not bad.
>> No, that's a big deal. And that's a big win for UOA or unusual option activity.
And we've got two more coming your way right after this stock, folks. Dollar Tree. So, Pete, big jump out of Dollar Tree today, exceeded analyst expectations. Reported earnings per share of 174 versus 155.
That's a big beat. Revenue was also pretty dang strong. And I think you had an insight, Pete, into maybe some of the weirdness that's going on as to why Dollar Tree is getting so much love today. Well, they they they did a partnership with DoorDash. Now, let's just back up for 1 second.
You're shopping over at Dollar Tree and yet you're not going yourself.
I just found that a very very interesting uh and I'm not trying to be mean about it, but I just you know, that that's sort of one of those things where you just sort of scratch your head and say, "Really?" All that being said, John, they raised, you know, their guidance like you were talking about. They did open 400 stores.
They closed a few as well. And that makes some sense that some aren't they just weren't in the right area or whatever the case may be, but they did have to shut down 75 of them, but 400 new stores, that was something that I think they had slowed down on for a while expanding themselves, but that that's expanding pretty damn good. So, I'd say there's not one part of what
they delivered either, John, except maybe this DoorDash thing that that that wasn't unbelievable. And you know what?
That's why the stock's up 17%.
>> Well, let's head a drone stock, Pete, because all of a sudden out of nowhere the Wall Street Journal reports that Trump is considering funding some of these drone companies. So, first it's Intel, then it's Quantum, and now it's these
drone companies and UMAC, which is Unusual Machines, folks.
It's a spinout out of Jeff Thompson's company, Red Cat.
And RCAT, Pete, makes military drones and he decided, you know, we'll push the hobbyist drones over here. Well, maybe they're not just hobbyist drones anymore, but unusual activity in this one, you betcha.
People came in to buy calls in this one and look at that jump that the stock made. I mean, it was a $17 stock, now it's basically a $27 stock in 2 days, Pete. 2 days.
Uh that's a pretty nice jump and obviously really paying dividends to anybody who followed us into that unusual option activity.
>> Yeah, very very fortunate if they they were able to catch on to that one and and another one today by the way in ONDS. So, I mean there's we got a lot going on in that space and it's uh you know, the only thing I can add to what you had cuz I think you covered it well, John, was if you if you could find yourself the drone stock that you want to trade, this probably wouldn't be a
bad time to keep an eye on that because uh you know what? The these kind of agreements and the way the president moves, uh we've already seen it. We've seen it with a heck of a lot of stocks.
I mean the the biggest one probably so far has been Intel, right? I mean just an absolute juggernaut.
>> Yeah. Well, and AVAV is one of the big movers here. Pete already said ONDS, um KTOS, UAVS.
These are all stocks that are moving to the upside, folks, along with Red Cat, RCAT. But the the unusual activity um in Unusual Machines uh was certainly welcomed by anybody who traded the options just over the last couple days.
All right, one more, Pete. Best Buy and Kohl's. So, this is what I'll call my Connell McShane indicator because those of you who know saw Pete and I on TV last week and might have said uh "Gee, John's being rather harsh
saying why would anybody care about a poll versus uh people putting money where their mouth is." Well, they put their money where their mouth is in these two stocks, Pete, and they weren't the only two. Several discretionary stocks because Kohl's is not a staple.
It's not something you need day-to-day like groceries. Um neither is Best Buy.
Now, they both have uh pretty significant amount of stuff that people want, but they also don't need it right now. I mean, so if they were cutting back, if they thought the economy was, you know, a little overheated and maybe it's due for a big pullback or a
recession, Pete, would they be spending money like this at Kohl's, KSS, and Best Buy? And by the way, unusual activity in KSS.
>> Mhm.
>> Just yesterday, the 27th, they bought 2,000 of the 5th of June expiring 14 calls. Well, those calls are now a buck 40 in the money. And so you had at least a double, maybe even more out of this one, Pete.
>> Absolutely incredible. I mean, you know, you got Wisconsin uh out there with KSS, and you've got Minnesota with BBY. I mean, you know, the neighboring states and the whole thing, John. And I'll tell you what, Best Buy, the strong demand in all the key categories really uh they crushed it. I mean, they absolutely
crushed it, up 38% year over year on on their uh earnings. So, they're they're doing everything it seems right. And like you and I were we're talking about, I mean, if the economy is what it is, what these people say it is, the 1,500 that are sitting at home in a pair of sweatpants itching themselves. Um,
you know, yeah. Well, it it's just amazing to me because you look at the revenue numbers as well, John. They crushed it on the revenue as well with Best Buy, 8.9 plus billion dollars. And you know what, that was for computing and phones and services. And meanwhile, the best segment of all, up 38%, was the entertainment segment of Best Buy,
televisions, all that kind of stuff. So, very, very interesting, and uh I get I I'm not surprised at all that they've they did as well as they did, John, because everybody, 80 plus percent at least, are are beating again this quarter. Beating on earnings, beating on revenue, beating on damn near everything. It's amazing.
>> Yeah.
So again, Connell McShane, would you rather follow a bunch of folks with Cheetos all over their fingers living in their mom's basement or follow real Americans and where they're spending money? I know which way I'll go, Connell.
All right, Pete.
Tell me a little bit about Von Miller. I hear you want to talk about our mutual friend, Von.
>> Yeah, well, and and that's why it was intriguing for me, but I think it's intriguing for everybody because we've talked about the free agency side of the of the market in the NFL. And there is a a group of guys that have gotten quite a bit older, and some of them definitely still want to play. Von Miller's one of
them. By the way, he's 37 years old, John. In Super Bowl 50, he was the MVP.
So, this guy has been a great player for a really long time. He still had nine sacks just last year alone. So, the guy is a heck of a player, still wants to play. Now, the pushback that if you're a GM and you're kind of considering this whole thing is he's only been playing, John, at least last year, 37% of the
snaps. So, if the offensive side, you know, 60 plays, let's say, you know, he's he's not playing, you know, 60 plays. He's been playing 37% of that.
So, it's that, but you know, when you look at his career, 138 and a half sacks, not so bad. He's had a heck of a year of a career. He still wants to play, but now he wants he's pushing really hard to go back to the Denver Broncos. That's where he wants to finish up his career. So, he hasn't been able to convince him yet, John, and I don't
know that he will or will not, but you might have some inside information on that one. Is Is there enough interest there or not?
Do you know?
>> Oh, there's definitely interest, and he is a stud. Yeah. And like I said, folks, Pete and I are friends with Von. We're going to be going to his sack summit out in Las Vegas in July, where he and Max Crosby and Cam Jordan basically pass along some of the tricks of the
trade to many of the younger pros and even college guys I think Pete to show them you know you've got to give the guy this kind of shot when you're coming from the outside to have him turn slightly so you can get around him or whatever that it might be. We'll be out there with ESPN and Bleacher Report Pete
so that'll be fun and we'll cover a lot more about what Von's up to these days.
But I know you had one more bit of sports Pete before we had to go.
>> I got one last one OKC. They're 3-2 is their lead that they've got right now.
Tonight is game six 7:30 Central Time.
Wemby uh they were taking it to him pretty good John. They were playing physical.
They were banging him around a little bit. He looked a little bit maybe tired.
I mean he didn't look as good as he did when he scored 41 and he didn't look as good when he some of the other games. So you almost wonder is he kind of wearing down a little bit. So I guess the question I just thought would be I'll throw it out there for fun. By the way it's back in San Antonio so that's an advantage for them for sure. They're 32
and eight at home John this past year.
So San Antonio plays pretty damn good at home. Will they be able to play good enough to extend it one more game? What do you think going into this game tonight because uh they handled them like it was nothing the other night. I mean they had a pretty substantial lead for the majority of that game.
>> If SGA Pete doesn't you know have his problems and go one for five again. But you know last game he went one for five in the first quarter and they still won it like you say going away.
I still think he needs to shoot into the high 20s if they're going to be beating San Antonio in San Antonio.
The Alamo Dome I I they call it down there Pete or something like that.
Um, but I I like their chances tonight to extend it. But again, if you get Holmgren hot or if uh their big center uh leans on Wembanyama enough to wear him down even more, then I think they could close it out in San Antonio. I
know that's kind of like I said both sides, but I'm really serious about if SGA puts up 20 plus P games uh the series is over.
>> Yeah. I I I I'm right there with you. I actually think that uh even though they're great at home, I think that OKC is actually going to take it to them.
And I'll tell you what, Caruso doesn't get nearly enough credit. That guy flies around the court. He's not like some 6-8 guy or anything, but he's you know, he's a hustler. He's a heck of a player. He's always running. He's always moving and the guy seems to be able to score pretty well. I'd like to see them get him more
into the game than they do because you know what? Sometimes SGA, if he's going into a slump or whatever, get Caris- Caruso in. The kids The kid is just great to watch. He really is. He reminds me of Williams from the days of uh Sacramento where he can do all sorts of things and he's he's got an amazing ability dribbling and shooting and
everything else. So, um I'd like to see him be be a bigger part part of this game. And I think if so, I think they win it.
>> Well folks, thanks for joining us. Uh we will be back Monday with another Rebel's Edge. We do this >> He's got an amazing ability dribbling I think they win it.
>> Well folks, thanks for joining us. Uh we will be back Monday with another >> We're going to be back at 1:00 p.m. And by the way, it's a full week next week.
So, yeah, we're going to do Monday, Tuesday, Wednesday, Thursday.
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