American Eagle (NYSE: AEO) stock soared 22% on Monday after President Donald Trump praised the company’s latest marketing campaign featuring actress Sydney Sweeney.
The retailer’s shares, trading at $13.19 at press time, had been down 24% year-to-date before the sudden spike.
Why AEO stock rallied on Monday
The rally was sparked by a post on Trump’s Truth Social platform, where he called Sweeney’s American Eagle ad the ‘hottest’ and claimed the jeans were ‘flying off the shelves.’
The endorsement came amid controversy surrounding the campaign, which launched last week with the tagline, ‘Sydney Sweeney has great jeans.’
Critics argued the slogan relied on a thinly veiled double entendre, accusing the brand of leaning into outdated, overly sexualized advertising tropes. Some suggested it referenced Sweeney’s physical appearance more than the denim itself.
American Eagle responded briefly, stating the slogan was meant to highlight the jeans and reaffirming its message of body positivity and confidence.
Whether the campaign will ultimately translate into meaningful sales growth remains to be seen, but it has thrust the brand back into the public spotlight.
Before Trump’s post, American Eagle had already drawn attention from retail traders amid renewed meme stock interest. With over 13% of its shares sold short and strong brand recognition, AEO mirrored other recent meme stock plays like Opendoor.
Featured image via Shutterstock
