American Eagle Outfitters (NYSE:AEO) shares rose 2.4% on Monday. The company has maintained most of its gains since announcing a partnership with actress Sydney Sweeney. Website visits have increased in the U.S. The stock has seen a boost despite Sweeney not yet moving the needle significantly for the brand.
American Eagle Outfitters (NYSE: AEO) shares experienced a significant rise of 24% on Monday, August 4, following a series of events surrounding the company's advertising campaign featuring actress Sydney Sweeney. The stock has since maintained most of its gains, with website visits in the U.S. increasing as a result of the ad controversy.
The ad campaign, which highlights Sweeney's genetic traits and her endorsement of American Eagle's jeans, initially drove a 23.65% increase in shares before former U.S. President Donald Trump publicly praised the campaign on his social media platform, Truth Social. Trump's endorsement, which included a political reference to Sweeney's registered Republican status, further fueled investor enthusiasm. The stock closed at $13.28 per share after Trump's remarks, reflecting a 24% jump in value [3].
Despite the controversy and the initial boost in sales, it remains unclear whether Sweeney's involvement will significantly impact American Eagle's brand. Analysts suggest that the company should seize on the interest generated by the ad campaign by issuing more shares, as seen with other meme stock darlings like AMC Entertainment Holdings and GameStop. The interest in American Eagle is likely to continue, even if there is not another major precipitating event like a social media post by Trump [2].
The stock's surge underscores the growing intersections between celebrity culture, political endorsements, and retail sector investments. While the immediate financial response has been significant, the long-term retail impact of the campaign remains to be seen.
References:
[1] https://nypost.com/2025/08/08/business/sydney-sweeney-ad-uproar-revives-meme-stock-squeeze-play/
[2] https://www.straitstimes.com/life/style/american-eagle-shares-jump-most-since-2000-after-trump-praises-sydney-sweeney-ad
[3] https://www.ainvest.com/news/trump-praise-sends-american-eagle-shares-24-2508/
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