American Eagle Stock Climbs Amid Social Media Firestorm over Sydney Sweeney Ad
American Eagle Outfitters (NYSE: AEO) saw its stock price surge following an unexpected endorsement from former president Donald Trump regarding a recent advertising campaign featuring actress Sydney Sweeney. Teh boost comes after the ad initially sparked controversy and calls for boycotts across social media platforms.
The unexpected intervention and subsequent market reaction highlight the potent intersection of celebrity endorsements, political commentary, and consumer sentiment in today’s retail landscape. The situation impacts American Eagle’s brand image, investor confidence, and potentially, the broader debate surrounding political expression in advertising. Investors are now watching closely to see if the positive momentum will sustain itself and whether the controversy will ultimately translate into increased sales.
The controversy began when American Eagle launched a campaign featuring Sweeney modeling the brand’s jeans. The ad quickly drew criticism online, with some users objecting to Sweeney’s previous social media activity. Calls for boycotts quickly spread, fueled by differing political viewpoints.
However, on August 4, 2025, Trump publicly voiced his support for Sweeney and the advertisement on his social media platform, urging his followers to buy American Eagle jeans. This endorsement triggered a significant jump in American Eagle’s stock price, as reported by Barron’s.
According to StockStory, American Eagle’s stock experienced a notable increase following Trump’s statement. Investopedia reported that the campaign had already begun to revitalize American Eagle’s brand image before the political intervention, with Sweeney’s popularity bringing renewed attention to the company.
The impact of the Sweeney campaign is occurring as American Eagle navigates a competitive retail surroundings. Gap Inc., a key competitor, recently reported its second quarter fiscal 2025 results on August 28, 2025, revealing the ongoing challenges and opportunities within the apparel industry.
The situation underscores the risks and rewards of aligning with high-profile celebrities and the potential for political factors to unexpectedly influence consumer behavior and market performance. It remains to be seen whether American Eagle can capitalize on this moment and maintain the positive momentum generated by the controversy and Trump’s endorsement.
