Hold onto your wallets—American Eagle Outfitters just turned a steamy ad into a stock market inferno.
According to the New York Post, shares of the teen retailer skyrocketed nearly 10% on Thursday, fueled by a provocative fall campaign featuring actress Sydney Sweeney, known for her role in "Euphoria," which has thrust the company into the volatile world of "meme stocks."
Before this rally, American Eagle's stock had taken a brutal 35% hit this year up to Wednesday’s close. Investors were sour on the brand, but sentiment flipped overnight. A daring marketing move changed the game.
The campaign showcases Sweeney in a denim jacket over a bare torso, oozing raw appeal. A video features her under the hood of a vintage Mustang GT350, sporting a tight tank top, slamming the hood, wiping her hands provocatively, and driving off. It’s bold, unapologetic, and tailor-made for social media buzz. By late Wednesday, chatter about American Eagle exploded on Reddit’s Wall Street Bets, the infamous forum behind the 2021 GameStop and AMC frenzies. Meme stock traders, drawn by the company’s 13% short interest per FactSet data, saw an opportunity for speculative gains and short squeezes.
Analysts noted the Sweeney campaign reframed investor perception of a struggling retailer. Suddenly, American Eagle joined the ranks of meme stocks like GoPro and Krispy Kreme, which saw wild price swings this week driven by online hype, not fundamentals.
Earlier this week, meme traders pumped stocks like Opendoor Technologies and Kohl’s with fleeting rallies based purely on social media momentum. American Eagle, with its strong brand recognition, became the latest darling of this speculative crowd. It’s a reminder that markets can be swayed by viral moments over earnings reports.
Social media reactions were fiery, with one X user posting, “Based ad campaigns are back.” Another added, “Take note Jaguar,” referencing the carmaker’s flop of a campaign last fall with androgynous models. The sentiment online? Traditional appeal sells.
A third X user cheered, “Woke’s dead, baby.” The cultural undercurrent is clear: some investors and fans see this as a rejection of overly cautious marketing. American Eagle’s stock became a battleground for more than just profits.
This isn’t Sweeney’s first rodeo in turbocharging brands. Last year, her partnership with Dr. Squatch for the “Body Wash Genie” campaign—a satirical multi-platform push—sent waves through the industry. A limited-edition “Bathwater Bliss” soap sold out instantly, with bars resold on eBay for up to $2,000 each.
The Dr. Squatch campaign crashed the company’s website, racked up 11.9 billion impressions, and landed over 800 media placements. Industry observers credited Sweeney’s viral pull for contributing to Unilever’s $1.5 billion acquisition of the brand last month. Unilever itself praised such “social-first marketing strategies” in its press release.
Sweeney’s star power also lifted Crocs last year when she became the global spokesperson for its Heydude brand, driving a stock rise of over 4%. Analysts tied renewed optimism to her involvement. She’s a proven market mover.
An American Eagle spokesperson declined to weigh in on the stock surge, stating, “We do not comment on trading activity.” They emphasized, “We remain focused on executing our strategy.” The message is clear: the company isn’t chasing meme stock glory.
For investors, this is a classic case of hype meeting opportunity. American Eagle’s fundamentals haven’t changed overnight, but sentiment has. If you’re eyeing a play, tread carefully—meme stocks are notorious for sharp reversals, and short interest could amplify volatility.
Still, Sweeney’s ability to ignite brands can’t be ignored. Her campaigns cut through cultural noise, delivering real financial sparks. For wealth-builders, the lesson is simple: watch where attention flows, but don’t bet the farm on a viral moment.