Overview

• AEO shares climbed about 10–12% on July 24 following the release of the “Sydney Sweeney Has Great Jeans” fall denim campaign.
• The sultry video spot went viral online and triggered a surge of retail buying on the Reddit forum WallStreetBets.
• Elevated short interest above 13% made American Eagle a prime target for speculative traders seeking a short squeeze.
• The celebrity-led campaign aims to boost Gen Z engagement as the retailer contends with a 5% revenue decline and revised guidance.
• Despite the rally, AEO stock remains down year-to-date and the company says its focus remains on long-term performance.