Rebels Edge · Wed, Jul 1, 2026
Meta Just Shook the AI Trade
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The hosts discuss Federal Reserve commentary, subdued market volatility, and company-specific moves led by Meta’s reported plans to sell computing capacity and AI models. They also review General Mills’ earnings, Microsoft’s spending and layoffs, and Corning’s valuation, emphasizing unusual options activity as a potential trading signal.
- The hosts highlight Kevin Warsh’s stated commitment to 2% inflation and note relatively calm broader markets.
- The VIX traded around 16–17, with discussion of a possible move below 16 ahead of the holiday weekend.
- General Mills rose after beating earnings and revenue expectations; management’s targeted $3 billion in cost savings by 2030 drew praise.
- Meta’s proposed sales of computing capacity and AI models were framed as a potential growth catalyst and added competitive pressure on AI infrastructure stocks.
- Nvidia, CoreWeave, and Super Micro were identified as stocks declining amid the Meta news.
- Microsoft’s layoffs were discussed alongside heavy AI spending, margin pressures, and a potential recovery in share-price momentum.
- Pete characterized Corning as expensive after its rally, citing a forward P/E of 80 versus a five-year average of 54 and suggesting further downside toward $200.
- Pete preferred waiting for substantial options buying before entering Corning; the hosts promoted UOA Elite as the tool they use to monitor that activity.
Full transcript
Welcome back to The Rebel's Edge. I'm Jon Najarian, back in these United States for the first time in a few weeks.
Great to be back. Pete will be joining me shortly to talk about exactly what Kevin Warsh is doing right now and about the ADP report, which also came out today. And remember, we do not trade on Friday, so tomorrow is the last trading
day of the week. So we've got that to look forward to on today's Rebel's Edge.
>> [music] [music] >> HEY, JUST IN TIME.
>> [laughter] >> TIME.
Uh folks, it's great to be back. Uh Pete had to do a little solo work this week.
Uh so sorry about that, Pete, but happy you were able to get some of those uh Rebel Edge reports out.
>> Yeah.
>> But great job as usual by you and Jared.
Let's dive into Kevin Warsh, shall we?
>> Yeah.
Mhm.
>> All right. Well, Fed chair, the new Fed chair, um he still has to deal with J. Powell, who you must think, Pete, sits around just kind of going, "I wouldn't have said that." >> [laughter] >> Whatever. But uh they're over in Portugal right now. And uh the fact that this is an
international appearance at the ECB forum, that's European Central Bank forum, you can understand why people would be interested in his statements, and that's one of the reasons people are focused on Kevin Warsh today, Pete. How about the ADP?
>> Yeah, and that's as that's about as big a storyline as there is. Even with the ADP, I I still look at the Kevin Warsh side of it because everybody wants to see what's he's what's he all about?
How's he going to react? Is he a puppet or is he himself, you know, going to be in the position I mean, that's not me asking. That's what people are saying, right? I mean, they just they kind of want to know a little bit more and and what's his positioning. So, I think that's uh pretty interesting. I think one of the things that I definitely walked away with John listening to some
of the things he had to say was uh the commitment that he's got for inflation.
And he said he said, "Inflation's got to be 2%." So, um that was one of the things that I think stood out as much as anything. And you know, that is about as macro as it gets is getting getting out there and having these the commentary that we're seeing and especially like you said, in the sort of forum that they are they are in right now, pretty interesting for sure.
But I, you know, I tend to like this guy a lot so far. Um you know, knowing some of the past of what he's been able to do and so forth. So, um it should be interesting and for a lot of people, a lot of people, um not saying necessarily me and you, but uh a lot of people are happy to see J. Powell in a different
spot than he than he was not too terribly long ago.
>> That's right. Well, and uh the markets seem pretty calm uh about Mr. Warsh being in there, Pete. I mean, the Dow's up almost 300 points.
Uh the S&P's up about a quarter of a percent. The Nasdaq's only down a quarter of a percent.
And could be down a lot worse, Pete, because we know that uh there are some headlines out there that have caused a lot of the stocks within the tech sector, which is the Nasdaq, of course, to be sort of leaning over if not falling over. So, we'll have to keep a sharp eye on that. Yeah, how about a sharp eye on uh the VIX, Pete? What do
you got today?
>> I think it's pretty amazing, John. This is something when when you were gone, Jared filled in and we were talking about the VIX. We were talking about the fact that it doesn't go underneath 16.
And and my my answer was, I think it's got a good shot at it. But um probably a better shot at it tomorrow as people start to price things ahead and start to go through well, what about Friday, what about Saturday, what about Sunday, where are we going to be?
All of that, but you could see I mean upper left to the bottom right.
That's been the angle, that's where we are. It's It's pretty interesting to see and the the tightness of where we've been has been very interesting and we're looking at a day even today John where basically we're sitting there call it between 16 and maybe 17. It started a little bit above that level 1725, 1730
and immediately dropped. So, 16s is where we start. Do we close under 16?
Now, that might get pretty interesting if we do and that's a possibility, although we still have a big trade for tomorrow.
>> Well, then let's maybe switch on over to some of the stocks Pete because of a glitch I was not able to get the prediction stuff up there folks. We know it's popular with you guys and so thanks for that, but today we'll talk about General what General Mills Pete. Big eating
Whenever you talk about Minnesota based companies Pete gets all excited.
Because he lives up there. So, whether it's Best Buy, whether it's Cargill, yeah, any of those big companies that are up there 3M and so forth.
Pete gets excited. This is one of those companies Pete General Mills and they had some pretty good news today and the stock moved up 7% right away. Still a far cry from 50 two week highs though Pete.
>> Yeah, at absolutely right John and it got up there towards that $38 level and like you said 7, 8, 9% whatever it might have been, but what did they deliver?
Well, they delivered on their earnings, they beat on their earnings by a pretty substantial amount. I thought that was pretty impressive. They beat on the revenue as well.
You look at General Mills they the thing that really stood out for me, John, is this uh initiative that they've got for a $3 billion in cost savings all the way by the time we get to 2030. So, they are working very, very hard to get to some of the things that they are putting out there.
It's going to be very interesting and you know what? They they really did come through. We're about to hit that earning season, John. I mean, we're not too far away. I think it's about a week and a half away now, where we're going to start seeing the financials and all the rest of it. But, General Mills toward toward the uh the tail end of this whole thing, I think they put up some good
numbers and I think that's why the the stock is reacting the way it is today.
Well, let's uh switch gears, Pete, to one of the big tech stories of the day, Meta.
Um, you guys used to know them as Facebook, so did we.
Um, but now uh what they're saying is uh that they're going to basically sell some of their extra compute, because Meta, competing with Microsoft and Google and all the hyperscalers, is out there saying, "You know what? Maybe we're going to uh sell uh to the AI
companies our computing power and models." And as soon as they said that, Pete, a bunch of the uh chip and AI-related stocks got hit. That's why I said at the top of the show, it's kind of surprising the Nasdaq's only down 2/10 of 1%. Because it seemed like it
could have been a lot worse, Pete. Meta jumped, but a lot of those other, like I say, chip and AI infrastructure stocks really were taking it on the chin early on.
Yeah, they're absolutely right, John. I mean, you know, they they're up there with those cloud leaders, the Amazons, the Microsofts, the Googles, and of course you throw Meta into that whole category, and they're talking about, like you just said, selling some of that compute. Well, what it really does hurt, uh at least in front of us because just the other day, maybe it was even just as
recently as yesterday, Nvidia's had this big run to the upside. Well, that's one of the stocks that was getting hit. You mentioned there was a few of them out there, that's one of them. I think you could go to Coreweave, that's another one. Super Micro, that's another one.
They're getting hit a little bit because, you know what? That's added competition. So, interesting to see how that's going. Meta has really needed, John, something. They've needed a little bit of fuel underneath them to get sort of back on track to get themselves moving with the rest of the Nasdaq that we've been watching have a pretty darn good second quarter.
And Meta, you know what?
8, 9, 10%, whatever it might be. We also have had a lot of UOA in there. We're not going to give that one to you for free today, but we are going to tell you there is some activity in there in Meta, and certainly people are getting very, very excited about what the potential is for this company going forward.
Well, unfortunately, we lost John. I'll tell you what, he's somewhere in the cyberspace. I don't know where the heck the guy is, but I will say this.
John was exactly right. Meta, what they're doing is great for Meta. It's not so great for some of the other names that we mentioned already. And next up, why don't we get to one of those really impressive names of late?
How about Microsoft? I mean, Microsoft, they've got layoffs, they talked about that. They've got a lot of different things that they've been working on.
Obviously, everybody's trying to get down their capex in some way or another.
They have a big spend over at Microsoft.
It's directly towards the whole AI world. And you know what? They've got margins to deal with, they got all of this, but it looks like Microsoft is starting to make a little bit of a turn, I think, Jared. So, interesting. There's what I'm talking about. This stock was down there, you know, it's up about what? 30 points or so off of those lows.
I think that says a lot about where they are right now, and they're starting to maybe catch some of that momentum again.
We'll see, but you know, they they do they did something that a lot of people we don't want to, you know, unfortunately it is what it is, but the workforce, right? They've cut back on some of the work workforce.
Terrible for those people, but that is part of this whole AI world, right? All this spend, all this so forth getting more efficient. That's what we're seeing playing out right in front of us with Microsoft.
>> Yeah, and I'm you know, I I'm not as doom and gloom. Obviously, I'm I'm one of those guys, you know, like I'm one of those guys in the trenches that has to think about, you know, what how does AI affect what I do personally for a living. I'm not one of those people that thinks AI is going to wreck that kind of excuse me, job [clears throat] market
completely, but this is going to be a transitional period and there is going to be it's going to be bloody.
>> In the meantime, it's a reality. It it's just the reality of where we are and you know what? We we always have something getting us to that next level and then we we pause for a while and then it was it's something else. So, you know what? Like you were just saying, I mean these things they're not always fun and a lot of the
time they can be heartbreaking, but it's progress and that's that's where we are.
Next one up is Corning, by the way.
Talking about progress, talking about AI, talking about data centers. Here we go again. This thing has been absolutely on fire of late. They've been ripping to the upside. Today, not so much. As you take a look at it right now, it's down what? 10, 11, 13% something like that.
It's been getting beat up. There's a good reason for that. This run was so, you know, inflated that you can see where the stock was and you can see where it is now. Look at where it was at, you know, at the tough times of May.
Uh that is a significant run to the upside, right? I mean, absolutely incredible. And if you just look at this, you know, year-to-date, it's pretty incredible. So, all that being said, you know, that that's where they are and have they gotten a little bit expensive? The answer is absolutely yes.
The PE of this company, the forward price to earnings is 80. What's its 5-year average? 54. So, yes, this thing is inflated. It is probably deserving of some of that because of what they're doing and how they're doing it and all everything that's going on with the the profit taking that they've got, you
know, and the way they're trying to navigate through things.
This thing hit all-time highs, the momentum is there, but now it's starting to pull back just a little bit and I think that makes complete sense because is it up in the stratosphere? Yeah, it is up in the stratosphere a little bit and there's going to be a pause probably for certain names. This is just one of those pauses, I think.
>> Do you think that that has it all to do with political pushback to the to the um manufacturing of of data centers? Um or or or is it really just the market got ahead of itself on this one? You know, like everybody was excited about core you know, Corning providing all of that fiber optics, but you know, when you start
>> it's I think it's a combination. I mean, you know, when you when you see a stock that makes that that kind of a move and we've seen plenty of stocks making those kind of moves, right? I mean, you can go back and you can look at Micron. You can go back and recently, how about this big run out of AMD? You you know, we had it in Nvidia for a long time. That's hit the pause, right? I mean, that literally
has hit a pause button, but there's a lot of companies out there that are still in that that sweet spot where people are just attracted to it and so forth. So, yeah, I mean, hitting all-time highs the way that they did and all the rest of it, the momentum was there, but sometimes that momentum starts to slow down and I think that's where we are right now. I
don't think this is just a one or a two-day pullback. I think it could pull back a little bit further and maybe to those levels, maybe around 200 or something like that. But, look at that.
I mean, you know, that you even if they get if this pulls back to 200, that's a substantial move from where we were not that terribly long ago. Call it a buck 60, a buck 70, right? That's a really nice move.
>> Yeah, are you looking at at trying to get in around the 200 level or do you do you want to wait like for some UOA or something like that?
>> I always like to see the options tell me that people are getting very, very interested once again. So, yeah, that to to answer that, I don't need to be a hero. I don't need to be a jumping in front of this thing. I would rather see others and when I say others, those big guys coming out there and suddenly with 10,000, 20,000, 30,000, 50,000 options
in one trade, those are the things that trigger for me. Now, everybody else is going to have their own way of looking at things, but me being a guy in the options world, that's what I look for. I look for where is the momentum, but also where is the volume? Where is the option volume where these guys come in to buy?
And that'll be interesting to see how that plays out.
>> Yeah, absolutely. [clears throat] Well, actually, so before you move on, I actually want to tell tell something to the listeners that I can see, but nobody else would have any way of seeing. So, the what Pete's talking about there, seeing seeing the action in the options, he actually uses the same tool, UOA Elite, that that that's the UOA Elite
service, the same thing. I you know, I'm an employee, so I have access to it.
Pete it's it's his. So, he has access to it, but that's actually what UOA Elite the service is. So, we'll shill it real quick. If you go to marketrebellion.com/getstarted, you can talk to one of our sales people about UOA Elite or I think I think you have to call or or submit your email to learn about that. I don't think you
can just sign up for that one. There are other services you can sign up for online just with e-commerce, but anyway, you know, we we never talk about it, but you and Jon both trade directly with the exact same service right there. I think it's a cool thing that, you know, like before I got involved, I just assumed you guys had a
supercomputer somewhere with like a much, you know, like a much more complex and involved uh thing, but it's it's not the case.
So, anyway, all right, what's going on in sports?
>> We got some fun stuff and I want to talk about sports and age just for a moment cuz we hit on this a little bit yesterday, Jared, but we can add a little bit to that. So, yesterday, what were we talking about? Demario Davis, right? He's a linebacker. He's 37 years old. He's still in the NFL. He plays with New York Giants. He's played for multiple teams. I think his last team
before this was New Orleans. He's just a great guy, great person number one, but invested in his body. He realized after the first couple of years where he felt pretty beat up and thought about retiring.
He basically said, "You know what?
Before I retire, let me just give this one more shot." And he went in and he absolutely invested in his body to the point where he paid pays about a million dollars a year to be make sure that he's his body is as good as it can be at his age. And I know 37, everybody's going, "Well, Pete, 37's nothing." In the NFL,
37's like being 85 in the real world.
So, yeah, 37 actually is a lot. But I look at that and and I'm I'm impressed with what he's done and continues to be an outstanding linebacker and has been for a long time. People have no idea, but when you're going up against those big offensive linemen, the big tight ends that are as big as the offensive tackles used to be 20, 30 years ago,
there's a lot of things going on there.
We also talked about the Golden State Warriors and are they really going to build the geriatric team that everybody's talking about? Because if they're going to trot out there and and Jared with LeBron James at 41, Anthony Davis at 33, how about Horford at 40?
How about Jimmy Butler at 36? And by the way, most of these guys that I'm naming have some sort of an injury already, with you know, so >> [laughter] >> in the off season. So, they've got to come back from that and, you know, as age goes, age goes. I got one last one for you. How about Serena Williams just yesterday. She's over there, she took
her time off and everything else.
44-year-old woman playing in, you know, the the best of the best at Wimbledon, right? I mean, it's absolutely incredible. And then all of a sudden in that first set, she got a little bit of a tweak. And you know what? That's not shocking. She's playing at a level with the highest, best
players in the absolute world. And they're not 44 years old, they're not 34 years old. These guys are 24 years old.
Some of them younger than that, right?
So, there is something to be said, you can do so much, but you can only do so much or whatever to be to still be there. So, I just thought that would be a fun thing just to throw out there.
What do you think of that? Is there I mean, there's got to be an age in in just about everything, you know, maybe except for where you're the lucky guy, cuz you're a computer guy, right? I mean, you do all this, but you used to be a rocker.
>> Yeah.
>> [laughter] >> Would you still be rocking if you were 55 years old, do you think? Or do you think your body starts kind of, you know, cuz even those guys start to slip down pretty fast, right?
>> That's well, that's an interesting thing. Rocking in the world of rock, the the the game is if if you get the money because when you're young, it's it's it's rough on your body. It's a lot of sleeping on floors, sleeping on couches, you know, un- untold hours in vans with guys that maybe you hate. Uh and
and carrying equipment, dragging stuff around. So, if you can get to the point where you're a little bit more comfortable, it doesn't have to be, you know, Jack White status. It doesn't you don't have to be sticks, you know, but if you can get to a place where it's like you're at least sleeping in a hotel room, you've got a bus with a little bit of space, you know, you've got you got
people who are picking up and moving the big gear, then then it can have longer, much much longer legs, but I wanted to mention Leo Messi.
>> Yeah.
>> 39 years old. He's he's still kicking ass out there. Um, >> And it's physical. You know what? Soccer is physical. I mean, I know that there are people out there who are going to say, "Well, it's just a bunch of guys running after the ball, blah, blah, blah." Well, it's a lot more than that and it can be physical. You've got to have you've got to be in the greatest shape of just about any sport, I would
imagine, because those guys are just flying around on these gigantic fields and so forth and you know, it's impressive that a guy at his age at his age, he's like the best thing out there.
You know, I'm I'm not saying Demaryius Davis is the best linebacker in the NFL right now. That's not what I'm I'm saying. He's a very, very, very good linebacker, by the way, and he's still playing in the NFL at 37. Messi Messi's still the BEST PLAYER.
YOU KNOW, I MEAN, THAT'S INCREDIBLE.
That's absolutely incredible.
>> Yeah, that's that's well. And there's another thing, you know, like some people they just don't want to quit.
Some people don't want to quit. Some people want to go out on top. Some people want to be remembered at their best and some people it's sports, you know, performance or in business, you know, some CEOs never want to go away.
Some owner founders never want to give up control.
Um, and and you kind of understand. It's not a it's not about it's about how how do you want to spend your time? How do you want to live your life? And if you retire, does that feel like, well, now it's time to die.
And I think some some people really have that.
Some people want to keep going as long as they can because that's how that's how they live.
>> By the way, I got to throw a shout out cuz you mentioned it, but Styx and my my good friend JY, James Young, one of my neighbors, one of my friends, one of the nicest men on the planet Earth and and he's getting a little bit older like everybody. I mean, you know, but you know, those rockers it's amazing. They they can push it to the limit sometimes and they and they still can perform
really, really well. Speaking of performance, I got a real quickie for you. The NFL, John and I are going to be out here.
It's going to be in July. It's July 9th through the 11th. And it's the Sacks Summit. And what that What is that?
People are like, oh, what a What is What is that? The Sacks Summit. What does that do with financial stuff? It doesn't. It's a sports thing. And it's a bunch of guys out there, Max Crosby, Von Miller, Cam Jordan. By the way, to show you how old I am, I played with Cam Jordan's father when I was at the Minnesota Vikings, Steve Jordan. He was a tight end for the Vikings. I was a
linebacker. Cam Jordan's probably still still one of the better, if not, you know, somewhere in the top group, for sure. Um, even at his age, the guy's absolutely unbelievable. Cal Berkeley, guy's smart as can be. His dad went to Brown, smart as can be. Um, knows how to do exactly what we've been talking
about, too, which is investing in your body. When you see the guys that are in great shape, that are investing in eating right, they're working out right, they're doing all the right things, that's what we're seeing in a lot of these guys. And I'll tell you what, you look at Max Crosby, the guy's chiseled.
I mean, absolutely chiseled. Von Miller, still chiseled. And then And these guys are getting a little bit older, a little little bit older. John and I are going to be a part of that summit. And we might even be able to sneak in a couple of uh of guys to uh maybe get some interviews with. So, we're pretty excited about that. We're going to be doing that along with the financial
um event that's going on at the same time. So, we're kind of doing a little bit of both, Jared. So, that ought to be pretty fun. But, the >> Cool. So, is Is that something people will be able to watch uh online? Or is is that an event people can go to?
>> I think it's more the online. As far as can they go there, I believe they're they're able to go there if they choose.
But, I think this is one of those things where is it in the mainstream of things?
Probably not. Um, but it's it's a big deal for a lot of the guys in the NFL.
And Max Crosby and these guys, I mean, for the people who don't know the Max Crosby story, I'll just say real quick, the guy played at Eastern Michigan.
Now, probably not a lot of guys coming out of Eastern Michigan that are at the level that this guy is at and he is truly one of the very best defensive ends in all of football. So, um he's had a great career already. He actually was part of a really crazy trade this past off season that didn't
go through because they claimed that he his his physical he failed it. Well, I'll tell you what, I think he's going to have some payment back to the Baltimore Ravens when that time comes because he I don't think he was very happy about what they said about that and he's going to be there. He's one of the leaders of this whole thing. It's in Las Vegas where the Raiders are and
everything. So, should be a lot of fun.
But, uh yeah, that's going to be a good time.
>> All right. Well, we'll uh we'll come back with more information about that as we have it, where and how you can check out the Sack Summit.
>> Yeah, sounds great. All right.
>> All right, guys. Uh thanks for watching.
We'll be back again tomorrow with John and Pete at 1:00 p.m. Eastern time.
Happy trading.
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