On this edition of Stock Movers:

- 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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Salesforce Slumps, American Eagle Surges, T. Rowe Rallies