American Eagle (NYSE: AEO) is on a tear this week, with shares surging after the retailer announced a high-profile campaign featuring actress Sydney Sweeney.
American Eagle stock closed Wednesday at $10.82, up 6.18% on the day after the announcement. But the rally didn’t stop there. In premarket trading on Thursday, AEO shares jumped as high as $12.46, up 15.16% from the previous close. At one point in after-hours trading, American Eagle stock spiked nearly 25% before moderating.
The campaign featuring Sweeney, who has become one of Hollywood’s most in-demand young stars has injected fresh buzz around the brand.
Adding fuel to the rally, American Eagle has been trending on Reddit’s WallStreetBets, the retail trading forum known for its role in past meme-stock frenzies. According to S3 Partners, approximately 13% of American Eagle’s float is currently sold short, making it a prime candidate for a short squeeze if retail buying momentum continues.
The combination of celebrity-driven hype, speculative interest, and a sizable short position has created the perfect storm for AEO’s rapid price surge.
