• by Sarah Mahoney , July 24, 2025

It’s not often that a press release about a fashion brand’s new celebrity ad campaign makes its way to the financial pages, but star-of-the-moment Sydney Sweeney seems to have pulled it off.

After American Eagle Outfitters announced that Sweeney, best known for her roles in “Euphoria” and “The White Lotus,” would star in the campaign, the company’s shares soared in premarket trading, reports CNBC, and rose another 3% when the market opened.

“Thursday’s jump makes American Eagle poised to join the ranks of a new class of meme stocks that has emerged this week,” the report continues. “American Eagle’s high short interest and inherent brand recognition make it a prime candidate for meme-obsessed individual investors, who have been sending specific stocks on volatile rides in recent days.”

Meme stocks, which earn their nickname because they are driven by social media hype and online communities, particularly on Reddit, are known for extreme price swings. While the companies are often financially sound, meme-stock prices are driven by viral coverage rather than market fundamentals. Meme traders have also zoomed in on GoPro, Krispy Kreme and Kohl’s in recent trading.

American Eagle, based in Pittsburgh, says the “Sydney Sweeney Has Great Jeans” campaign is a return to essential denim dressing. “American Eagle is celebrating what makes our brand iconic – trendsetting denim that leads, never follows,” said Jennifer Foyle, president and executive creative director, in the company’s announcement. “Innovative fits and endless versatility reflect how our community wears their denim: mixed, matched, layered and lived in." 

The campaign collection includes a limited-edition denim jacket and The Sydney Jean, a take on the brand’s fan-favorite Dreamy Drape franchise. A butterfly motif on the back pocket of the jeans represents domestic violence awareness, a cause Sweeney is passionate about. The entire purchase price of the Sydney Jean goes to Crisis Text Line, a nonprofit offering free mental health support.

But Barron’s writes that it may be too soon to label AEO just another meme stock. “Although the retailer has been struggling lately …, analysts believe this year will be the most challenging and are projecting a gradual improvement in both sales and earnings over the following two years.”

It notes Sweeney’s endorsement could help, citing Levi’s success with Beyoncé as an example.

And there’s no denying Sweeney is a high-impact celeb. When men’s personal care brand Dr. Squatch made 5,000 bars of soap out of her bathwater, called Sydney's Bathwater Bliss, the $8 bars sold out quickly, with USA Today reporting that some are being resold for as much as $1,600.