00:00 Speaker A
Welcome back to Market Sunrise. We are now doing our trending tickers and our first trending ticker today is American Eagle Outfitters. The ticker there is AEO. It shares soared more than 25% in after hours following its earnings report. It’s now trading over 26% higher in pre-market now.
00:26 Speaker A
What’s behind the pop? In short, the brand has got an unprecedented momentum with Gen Z customers despite shaky consumer sentiment right now. American Eagle lifted its outlook. The company now expects low single digit gains in Q3, comparable comparable sales and flat full year comparable sales, a sharp turnaround from prior expectations of declines.
00:53 Speaker A
And in the past 12 months, the stock is still down more than 30%. The outfitter appears to have benefited from a controversial marketing campaign featuring Sydney Sweeney that went viral even as it faced criticism. American Eagle doubled down on its messaging, highlighting Sweeney’s personal story and playing on the words jeans, the trousers and and jeans, that’s g e n e s.
01:19 Speaker A
Okay, and speaking of viral campaigns, take a listen to this.
01:25 Speaker B
Nothing beats a Jet2 holiday. And right now, you can save £50 per person. That’s £200 off for
01:34 Speaker A
Yes, our second trending ticker is Jet 2, the UK-based tour operator had one of their adverts backed by vocals from British artist Jess Glynne go ultra viral on social media for perhaps the wrong reasons.
01:46 Speaker A
Well, the company has warned that its profits are going to be at the bottom end of analyst forecast and has already cut the number of seats available on its destination holidays from 5.8 to 5.6 million. Shares are currently down over 14% on the London Stock Exchange.
02:05 Speaker A
The company has experienced major brand awareness with their viral content, but cautious consumers appear to be holding back from booking their big getaways. The effects are being held on both sides of the pond with hotel chains Marriott and Hyatt, as well as airline Southwest also forecasting delays in bookings.
02:22 Speaker A
Now our third trending ticket is Tesla’s biggest rival in electric vehicles, China’s BYD. Like Elon Musk’s company, the Chinese EV maker is also under pressure today. Hong Kong listed shares of BYD are in the red this morning after the company cut its 2025 sales target by as much as 16% down to approximately 4.6 million units. That’s according to Reuters.
02:49 Speaker A
Quite a few reasons for the adjustment, cooling domestic demand, intensifying price competition and slimmer margins are the main ones. And this comes as BYD posted its slowest annual growth since 2020, delivering modest year-over-year sales increases and absorbing a 30% quarterly profit drop.
03:10 Speaker A
This news certainly won’t go unnoticed in the electric vehicle world, where expectations have been sky high and BYD has been a big beneficiary of that optimism. But just in the past few days, slowing sales for Tesla and the end of some generous subsidies are raising fundamental questions about the future.