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American Eagle (AEO) Falls 8.4% Ahead of Earnings

We recently published 10 Firms Facing a Rough March So Far. American Eagle Outfitters Inc. (NYSE:AEO) was one of the worst performers on Monday.

American Eagle dropped its share prices by 8.42 percent on Monday to close at $22.50 apiece, as investors unloaded portfolios ahead of the release of its earnings performance this week.

According to the company, it would conduct an earnings call to discuss its financial and operating highlights for the fourth quarter and full-year 2025 period after market close on Wednesday, March 4.

For the period, American Eagle Outfitters Inc. (NYSE:AEO) is expecting to report an 8 to 9 percent growth in comparable sales versus the fourth quarter of 2024. It also raised its operating income guidance to a range of $167 million to $170 million, versus $155 million to $160 million previously. It also expects to incur a net tariff impact of approximately $50 million.

For the full-year period, comparable sales are expected to grow by low single digits, while operating income is targeted to hit $303 million to $308 million. Net tariff impact is expected to be at $70 million.

Last month, American Eagle Outfitters Inc. (NYSE:AEO) already hinted at a strong comparable sales performance for the fourth quarter of 2025, with the last three months up to January 3, 2026, already up by high single digits.

It said that sales trends across brands and channels all turned positive, with the Aerie brand alone jumping by low twenties, while the American Eagle brand was up by low single digits.

“Momentum continued in the fourth quarter with record December sales fueled by the power of our brands, with particularly strong growth at Aerie and Offline and sequential growth at American Eagle. Our customers embraced new product collections and responded to our latest marketing initiatives, with strength continuing in the post-holiday period. We look forward to building on this positive trajectory with new customer-inspired collections, as we remain focused on creating value for our shareholders,“ American Eagle Outfitters Inc. (NYSE:AEO) CEO Jay Schottenstein said.

While we acknowledge the risk and potential of AEO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AEO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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