U.S. President Donald Trump publicly lavished praise on American Eagle’s provocative denim campaign featuring actress Sydney Sweeney, calling it the “hottest ad out there” in a Truth Social post—and igniting a meme‑stock rally that sent the brand’s stock up over 23–24% in just one session .

The June campaign dubbed “Sydney Sweeney Has Great Jeans” had already generated buzz for its edgy pun on “genes,” causing controversy over alleged eugenics or white-supremacist undertones. Critics called the ad tone-deaf, while defenders lauded its bold marketing. Trump amplified the attention by linking the ad to cultural criticism—taking a jab at other brands he labeled “woke” .

Despite weak financials - including a Q1 net loss and a 5% year-over-year revenue decline—American Eagle’s stock surged to its largest single-day gain since 2000, adding nearly $200 million to its market cap . Many analysts attributed the rally not to fundamentals, but to social media-fueled momentum, branding the stock’s movement as “meme-driven” .

The company responded with a statement emphasizing the campaign's denim-first intent: “Great jeans look good on everyone.”

It remains to be seen whether the surge will translate into sustainable sales growth. Analysts warn that while hype fuels short-term spikes, long-term performance hinges on product and earnings improvements.