Shares of American Eagle Outfitters jumped more than 4% on July 24, 2025, following the announcement of its fall campaign featuring actress Sydney Sweeney. The stock's high short interest and inherent brand recognition positioned it as a candidate for increased interest from individual investors.
FactSet data indicated that over 13% of American Eagle shares available for trading were sold short, contributing to discussions on platforms like Wall Street Bets. This dynamic can lead to artificial buying as investors betting against the stock move to cover their positions.
Jennifer Foyle, the company's president and executive creative director, highlighted that Sweeney brings allure to the campaign, which focuses on American Eagle's denim jeans. This market reaction provided a reprieve for the stock, which had seen a decline of around 35% year-to-date through the previous day's close.
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