Sydney Sweeney reacts to Trump praise on jeans ad that sent stock soaring 25%. Should you invest in virality?

Four months aft her arguable American Eagle Outfitters (AEO) jean run sent the retailer’s banal soaring (at slightest temporarily), histrion Sydney Sweeney has yet breached her silence.

The retailer’s advertisement campaign, which rolled retired successful precocious July, utilized a wordplay connected ‘genes’ with the tagline “Sydney Sweeney has large jeans,” which sparked statement implicit contention and genetics.

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In a caller GQ interview, the Euphoria and The White Lotus prima downplayed the backlash. When asked astir Trump’s Truth Social praise of her advertisement — which amplified the campaign's scope — Sweeney called it “surreal,” adding that she “didn’t truly spot a batch of” the contention due to the fact that she was filming 16-hour days connected Euphoria’s 3rd play (1).

Following the campaign, American Eagle banal surged 25% aft hours connected the Q2 net study (2). The institution says its selling campaigns with some Sweeney and Kansas City Chiefs’ choky extremity Travis Kelce brought successful 700,000 caller customers — and a signature brace of jeans worn by Sweeney sold retired successful 1 week (3).

But, portion the company’s banal terms jumped, its longer-term outlook is unclear. Here’s what to cognize astir investing successful virality.

While personage endorsements tin make online buzz, the question is whether that buzz tin construe into long-term, sustainable maturation for a brand.

Before the July run launch, American Eagle banal was languishing adjacent $10, down implicit 40% from its yearly high. The company’s Q2 net revealed the Sweeney effect: gross deed $1.28 cardinal with net outperforming expert estimates astatine $0.45 per stock versus the expected $0.20 (4).

Sweeney told GQ she was “aware of the numbers” passim the controversy, noting that antagonistic headlines astir declining store visits “was each conscionable a batch of talk.”

But ft postulation successful stores — and impressions connected societal media — don’t ever construe into sales. The existent trial volition beryllium whether American Eagle’s 700,000 caller customers instrumentality astir for vacation buying oregon if this was conscionable different fleeting societal media moment.

There’s a word for that: a ‘meme stock’ goes viral based connected societal media hype, alternatively than beardown fundamentals similar accordant gross maturation (5). A meme banal whitethorn look to committedness large returns, but there’s nary telling erstwhile a skyrocketing banal terms volition plummet.