American Eagle Outfitters Inc. AEO stock jumped 23.84% in after-hours trading on Wednesday, reaching $13.40 following the launch of a new advertising campaign featuring actress Sydney Sweeney.
The surge adds to speculation that the apparel retailer could become the latest target in the ongoing meme stock phenomenon.
What Happened: The stock closed regular trading at $10.82, up 6.18% for the day, before spiking dramatically after hours. Year-to-date, shares remain down 36.84%.
American Eagle announced Wednesday its Fall 2025 campaign titled “Sydney Sweeney Has Great Jeans,” featuring the globally recognized actress to promote the company’s position as the leading jeans brand for Generation Z consumers. The campaign marks a strategic return to the retailer’s denim heritage.
“This fall season, American Eagle is celebrating what makes our brand iconic – trendsetting denim that leads, never follows,” said Jennifer Foyle, President and Executive Creative Director for AE & Aerie, in the company’s press release.
The campaign includes innovative marketing strategies such as 3D billboards and a presence on the Sphere’s Exosphere in Las Vegas. A limited-edition denim jacket inspired by Sweeney’s style will retail for $79.95 starting August 10.
See Also: Trump Wanted To Break Up Nvidia Before He ‘Learned The Facts’ — He Later Found Out It’s ‘Not Easy’
Why It Matters: The timing coincides with renewed meme stock activity across markets. Opendoor Technologies Inc. OPEN has gained over 480% in the past month, while traditional meme stocks GameStop Corp. GME and AMC Entertainment Holdings Inc. AMC have shown increased trading volume.
Retail traders have historically targeted heavily shorted stocks since the January 2021 GameStop short squeeze that originated on Reddit’s WallStreetBets forum. This democratization of finance continues influencing market dynamics, with social media buzz often driving significant price movements in targeted securities.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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