American Eagle Outfitters (AEO) experienced a substantial surge in its stock price following the launch of its Fall 2025 denim campaign featuring actress Sydney Sweeney. The campaign, titled "Sydney Sweeney Has Great Jeans," includes over 200 denim fits and a limited-edition "Sydney Jean," with proceeds benefiting the Crisis Text Line. The announcement triggered a notable after-hours rally, with shares rising as much as 28%, adding approximately $400 million to the company's market capitalization. This surge was partly fueled by viral attention on social media platforms such as Reddit's WallStreetBets, positioning American Eagle as the latest meme stock. Despite the strong market reaction, JPMorgan downgraded AEO to Underweight from Neutral, citing concerns over promotional overhang, persistent competitive weakness, margin pressures from foreign exchange, tariffs, and markdowns, and lowered the price target to $9 from $10. The campaign has also sparked debate and criticism related to its provocative retro sexiness and perceived cultural implications, drawing both backlash and amplified publicity. The jeans associated with the campaign reportedly sold out quickly, underscoring the commercial impact of the marketing effort.
Is that @sydney_sweeney @AEO ad offensive? Or just weird? @Jason, @alex, and @Lons debate the meaning of “good genes” and why American Eagle maybe just needed a few more folks in the writers room. PLUS…👉How @astronomerio's new ad brilliantly changes the conversation 👉IMAX’s https://t.co/Mceh3N9dEM
$AEO - Jeans now sold out. Soon the stock… https://t.co/RGCUJ7a810
$AEO Bullish https://t.co/IrbJnco0K0