Trump praises the controversial "Sydney Girl" advertisement, American Eagle Outfitters becomes a meme stock with the largest increase in 25 years

According to Zhitong Finance APP, on Monday, after U.S. President Trump praised American Eagle Outfitters (AEO.US) for its advertising campaign, the company's stock price recorded its largest single-day increase since 2000, jumping into the ranks of "Meme stocks." Trump posted on social media that the recent marketing campaign featuring actress "Sydney Sweeney" is "the hottest ad right now," also mentioning that the brand's jeans are "flying off the shelves." As a result, the company's stock price soared 24% on Monday. However, it remains to be seen whether this controversial ad, which highlights Sweeney's genetic advantages, can effectively boost sales. Analysts point out that the real test will come during the upcoming back-to-school season—when consumers begin purchasing fall essentials like jeans, the performance of American Eagle Outfitters will be key. Although Trump's remarks did not reveal any new information about the company's performance, they undoubtedly fueled the hype surrounding American Eagle Outfitters' stock price. This attracted investors betting on market enthusiasm—typical characteristics of Meme stocks. "What are Meme stocks? Essentially, they are popular stocks pursued by retail investors," said Matt Maley, chief market strategist at Miller Tabak & Co. The surge on Monday narrowed the stock's year-to-date decline to 20%. Previously, the company had been underperforming due to weak demand and had recorded a $75 million impairment charge for spring and summer merchandise in the last quarter. Some traders driving the stock price increase on Monday may believe that this media attention will translate into actual sales. However, Maley noted that this alone cannot explain such a significant stock price fluctuation and suggested that company executives should take action while the momentum is strong, such as issuing additional shares—previously, Meme stock favorites AMC (AMC.US) and GameStop (GME.US) had taken this approach. Representatives from American Eagle Outfitters have not yet responded to requests for comment. "Short-term traders are best at chasing market enthusiasm," said Steve Sosnick, chief strategist at Interactive Brokers. "If you believe that higher discussion levels are beneficial for stock prices, then this is indeed a golden opportunity." But he added that after Trump's remarks, "whether this will actually boost product sales, or conversely, may take days, weeks, or even quarters to manifest." Even without significant catalysts like a presidential tweet, market attention on American Eagle Outfitters may still persist. "The momentum has already formed," Maley stated, "in today's algorithm-driven market, it will not only generate buyers but also suppress selling." Although Sweeney, as a brand darling, has indeed driven related stocks up, such effects are often difficult to sustain. A year ago, when footwear brand Crocs (CROX.US) announced Sweeney as the global ambassador for its HEYDUDE product line, the stock price rose 4.1% on that day, but has since accumulated a nearly 30% decline