Sydney Sweeney Sparks American Eagle Meme Stock Frenzy

On Thursday, shares of American Eagle Outfitters saw a sudden and dramatic jump, rising as much as 12% during the trading session. The surprising driver of this rally wasn’t financial performance or a new product launch—it was actress Sydney Sweeney.

The star of “Euphoria” and “Anyone But You” became the center of attention after American Eagle unveiled a new denim campaign featuring her as the face of the brand’s fall line. The campaign, titled “Sydney Sweeney Has Great Jeans,” quickly went viral after its release on Wednesday.

Her popularity and cultural relevance caught the attention of the retail investing crowd, especially those active on Reddit’s Wall Street Bets forum, where enthusiasm for meme stocks often begins.

“With Sydney Sweeney front and center, she brings the allure,” said Jennifer Foyle, president and executive creative director at American Eagle, in a statement to CNBC. “We add the flawless wardrobe for the winning combo of ease, attitude and a little mischief.”

Retail investors jumped on the stock as Sweeney’s images and the campaign message circulated online. Some investors shared screenshots of large AEO positions, citing little more than Sweeney’s involvement as justification for the trade. One Reddit user quipped, “$AEO Who doesn’t like Sydney Sweeney. That’s my DD,” according to Business Insider.

American Eagle’s elevated short interest made it a ripe candidate for meme-driven speculation. According to FactSet, roughly 13% of the company’s float is sold short. Stocks with high short interest are often targets for retail traders looking to trigger a short squeeze, where rising prices force bearish investors to buy shares to cover their positions, adding more upward momentum.

Despite the current excitement, American Eagle has been facing challenges. Through Wednesday’s close, the stock had fallen about 35% year-to-date. The company’s most recent earnings report showed a 5% decline in revenue, and it has pulled back on forward guidance due to cautious consumer spending and increased competition in the apparel sector.

The timing of the campaign couldn’t be more critical for American Eagle, which is working to revitalize its image and reconnect with Gen Z shoppers. Sweeney, with her blend of mainstream appeal and social media influence, is a strategic fit for the brand’s shift toward denim and Western-inspired fashion—trends that have seen renewed interest in recent months.

American Eagle now finds itself among the week’s new class of meme stocks, dubbed the “DORKs,” alongside Krispy Kreme, Opendoor, Rocket Lab, and Kohl’s. All of these companies experienced sharp, retail-driven trading activity this week, even as many continue to struggle with underlying business performance.

“It may not seem like the famous actor has much in common with the most famous retail trader folk heroes, but Sweeney on Thursday was the unlikely catalyst of a sudden stock surge,” wrote Business Insider’s Christine Ji.

Whether this meme-fueled rally signals a lasting turnaround for American Eagle remains uncertain. The combination of social media virality, high short interest, and celebrity endorsement has created a perfect storm of attention. But the sustainability of this momentum will likely depend on whether the campaign leads to meaningful engagement and sales.

For now, Sweeney’s star power has given American Eagle a boost at a critical time. In an era where viral moments can move markets, it’s clear that financial fundamentals aren’t always the only story. As one Reddit user put it, “I’m going in too, it’s a meme world now.”

“2x AEO ETF filing incoming in 3.. 2.. 1..,” tweeted friend of Zero Hedge, Eric Balchunas.

Yea… American Eagle is about to go vertical.$AEOpic.twitter.com/MtKqVadMND

— Geiger Capital (@Geiger_Capital) July 23, 2025