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Investing.com - American Eagle Outfitters Inc (NYSE:AEO) stock jumped 18% in premarket trading Thursday, continuing momentum after the apparel retailer announced a campaign featuring actress Sydney Sweeney.
The campaign announcement on Wednesday initially drove shares up 6.2% during regular trading hours. The stock rally accelerated in after-hours trading and continued Thursday morning, with premarket gains reaching as high as 25% before moderating slightly.
American Eagle shares gained attention on Reddit’s WallStreetBets forum, a community known for triggering meme-stock trading surges. Short interest in AEO represents approximately 13% of its float, according to data from S3 Partners.
Prior to this rally, American Eagle stock had declined 35% year-to-date, closing Wednesday at $10.82 per share.
The Sydney Sweeney campaign and subsequent social media attention mark a potential turning point for the retailer, which has struggled in 2024 amid broader challenges in the apparel sector.
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