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Trump Says Sweeney's Ad Is 'HOTTEST' — American Eagle Stock Goes Wild

Benzinga·08/04/2025 18:28:44
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American Eagle Outfitters Inc. (NYSE:AEO) surged as much as 20% by early afternoon Monday after an unexpected endorsement from President Donald Trump lit up Truth Social — and the stock market.

AEO stock spikes on heavy volume. Check the price action here.

In a fiery post, the president praised actress Sydney Sweeney, calling her American Eagle ad the “HOTTEST out there,” while blasting rival brands for going "woke." Trump claimed the jeans were "flying off the shelves," lumping Jaguar and even Taylor Swift into a tirade on brands and culture wars.

"Being WOKE is for losers, being Republican is what you want to be," he posted.

Read Also: Sydney Sweeney For Palantir Merch? Exec Says ‘Hear Me Out’ After American Eagle Stock Soars 22%

Sweeney Stock Surge Or Something More?

Trump's praise turned American Eagle into the latest political meme stock, tapping into the same cultural undercurrent that lifted names like Digital World Acquisition Corp. (now merged with Trump Media & Technology Group Corp (NASDAQ: DJT) and Rumble Inc (NASDAQ:RUM) in past cycles. But unlike those speculative names, American Eagle has some retail fundamentals to lean on.

Still, the Sweeney-Trump bump adds a level of volatility that's tough to quantify. The company hasn't commented, and no new earnings or sales updates were issued on Monday — meaning the surge was almost entirely sentiment-driven.

Can Hype Override The Headwinds?

American Eagle's next earnings report isn't due for weeks, and the stock had been treading water for most of the year amid broader retail pressures. Year-to-date it is still down about 24%. However, over the past month, the stock has gained over 32%, driven by Sweeney campaign’s launch on July 23, and now by Trump’s influence. The sudden rally raises the question: Is this a genuine re-rating or a temporary pop?

Retail investors may be cheering, but analysts will likely wait for hard data — especially as back-to-school season ramps up and margins stay tight across the apparel space. A flashy ad and a viral post can spike interest, but sustainability is still stitched in revenue and earnings.

For now, American Eagle is trending — online and on Wall Street. Whether it flies or fades will depend on more than just who's wearing the jeans.

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Photos: Sydney Sweeney, courtesy of American Eagle; Trump, via Shutterstock

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