Salesforce Slumps, American Eagle Surges, T. Rowe Rallies
Sep 4, 2025
Salesforce's stock takes a hit as the company faces challenges with AI competition and misses quarterly sales projections. Meanwhile, American Eagle's shares soar, thanks to a successful marketing campaign featuring Sydney Sweeney, which attracted new customers nationwide. The fashion brand's sellouts of popular jeans illustrate the power of celebrity influence. Additionally, T. Rowe Price's strategic partnership with Goldman Sachs hints at transformative trends in Wall Street amid rising social media dynamics.
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insights INSIGHT
AI Anxiety Hits Incumbent Software
Salesforce's weak revenue guidance sparked investor 'AI anxiety' about incumbents losing ground to newer AI vendors.
Markets fear AI could reduce demand for per-user software models used by companies like Salesforce.
question_answer ANECDOTE
Viral Ad Campaign Fuels Retail Rally
American Eagle's stock jumped after its Sydney Sweeney ad campaign drove nationwide customer acquisition and sellouts of signature jeans.
The company reported better-than-expected revenue and same-store sales, fueling a record intraday gain.
insights INSIGHT
Social Momentum Can Trigger Big Stock Moves
The American Eagle move had meme-stock characteristics due to rapid social media momentum and a huge single-day spike.
Retailer shares recovered from earlier declines as the campaign produced tangible sales beats.
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- Salesforce (CRM) shares slumped today after the company projected lackluster quarterly sales growth, suggesting its artificial intelligence product isn’t yet paying off as quickly as hoped in the face of competition from emerging AI companies. Revenue will be $10.2 billion to $10.3 billion in the period ending in October, the company said Wednesday in a statement. Analysts, on average, estimated $10.3 billion. Current remaining performance obligations, a measure of bookings, will increase “slightly above” 10%, in line with analysts’ average projections. Investors have been increasingly anxious that incumbent software makers will be outshined by new AI-based vendors. Companies like Salesforce, which make applications that are charged per user, have faced the steepest skepticism because of the view that AI will take over some of the tasks they provide and reduce the workforce of their customers.
- American Eagle (AEO) shares surged after the apparel company reported yesterday higher-than-expected quarterly sales and cited the success of its marketing campaign featuring Sydney Sweeney. “In just six weeks, the campaign has generated unprecedented new customer acquisition,” Chief Marketing Officer Craig Brommers said in a call with analysts. He said the company gained new shoppers in “every single county in the US” and saw sellouts of Sweeney’s signature jeans. "This momentum is national and it is pervasive,” he said. American Eagle shares gained as much as 34% on Thursday, the biggest intraday advance on record. The stock had declined 18% this year through Wednesday’s close. For the quarter ended Aug. 2, American Eagle reported same-store sales down 1%, surpassing the average analyst estimate compiled by Bloomberg. Revenue also outpaced expectations.
- T. Rowe Price (TROW) shares rallied today after Goldman Sachs said it will invest as much as $1 billion in the asset manager. The unusual arrangement means Goldman will use its balance sheet to hold equity in T. Rowe, whose stock has tumbled more than 50% from its 2021 peak. The companies will collaborate on a range of investments for retirement savers and wealthy investors, they said in an emailed statement. Goldman will make “a series of open-market purchases” to amass up to 3.5% of T. Rowe’s stock, potentially making the Wall Street bank one of its five biggest shareholders, according to the statement. It will be Goldman’s only investment in an outside asset management firm. The tie-up is the latest sign that the biggest financial firms are competing hard to win over wealthy Americans and those with 401(k) plans on the merits of private equity, credit and infrastructure strategies.
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