American Eagle Outfitters shares soared into “meme stock” territory — after the teen retailer revealed Sydney Sweeney is leading a steamy new ad campaign for the fall.
The company’s shares surged nearly 10% on Thursday after it unveiled its new marketing blitz, which features the “Euphoria” star sporting a denim jacket over her otherwise bare torso.
In a sultry video spot, Sweeney leans under the open hood of a vintage Mustang GT350 in a tight tank top, then slams the hood shut — and wipes her hands on her butt before hopping into the car and peeling off.
The edgy ads appeared to defy the “wokism” lately embraced by some major brands — sometimes with disastrous effects, according to commenters on social media.
“Based ad campaigns are back, and wokery is gasping for breath,” commented X user Zia Yusuf — using the Gen Z term “based” that typically signifies something which is controversial yet true.
“Take note Jaguar,” Yusuf added, referring to the UK car maker’s flopped ad campaign last fall featuring androgynous models.
“Sydney Sweeney drops a cheeky ad, American Eagle stock soars 22%,” another X user gleefully observed. “Woke’s dead, baby. Woke’s dead.”
American Eagle joins a volatile cohort of newly anointed meme stocks, including GoPro and Krispy Kreme, which saw sharp price swings in Wednesday’s session.
Earlier in the week, meme traders focused on names like Opendoor Technologies and Kohl’s, creating brief rallies driven largely by social media buzz rather than earnings or company news.
Analysts and traders noted that the Sweeney campaign had helped reframe sentiment around the company, whose shares had fallen 35% this year ahead of Wednesday’s close.
The retailer’s strong brand recognition and more than 13% short interest, according to FactSet data, made it a natural magnet for meme stock traders seeking short squeezes and speculative gains.
Chatter about American Eagle gained momentum late Wednesday on the popular Reddit forum Wall Street Bets — best known for its role in the 2021 GameStop and AMC rallies.
“We do not comment on trading activity or fluctuations in the stock price,” an American Eagle spokesperson said. “We remain focused on executing our strategy and taking actions to position the company for long-term performance.”
Last year, Sweeney partnered with men’s personal care brand Dr. Squatch for a multi-platform marketing blitz that helped propel the company to a $1.5 billion acquisition by Unilever less than a year later.
The campaign — dubbed the “Body Wash Genie” — cast Sweeney in a playful, satirical role across TV, YouTube, podcasts and social media.
One limited-edition product, a “Bathwater Bliss” soap made with droplets from one of Sweeney’s baths, sold out instantly and triggered a frenzy of resale listings on eBay, where individual bars fetched as much as $2,000.
The campaign overwhelmed Dr. Squatch’s website and generated massive viral buzz.
The results were staggering: Dr. Squatch received over 800 media placements, 11.9 billion impressions and a spike in consumer engagement that accelerated its retail growth and brand valuation.
The Sweeney campaign was credited by industry observers as a key driver in Unilever’s decision to acquire the company for $1.5 billion last month.
Unilever’s press release cited “viral social-first marketing strategies, partnerships with celebrities and influencers, and culturally relevant collaborations” as central to Dr. Squatch’s rapid growth — a clear nod to Sweeney’s role in elevating the brand.
Last year, Crocs’ stock jumped more than 4% after its Heydude brand announced Sweeney as global spokesperson, with analysts crediting the move for renewed investor optimism.
A spokesperson for Sweeney declined to comment. The Post has sought comment from American Eagle.
This story originally appeared on NYPost
