American Eagle Outfitters (AEO) saw its stock price soar more than 20% in a single day after former President Donald Trump publicly praised the retailer’s latest advertising campaign featuring actress Sydney Sweeney. Trump’s comments singled out Sweeney, star of HBO’s “Euphoria,” applauding both her performance in the viral “good genes” jeans ad and noting her reported Republican affiliation. The surge pushed AEO shares to their highest close in months, helping to recover ground after a difficult year.

This sharp jump comes amid broader debates on “woke” advertising in the corporate world. Trump contrasted American Eagle’s recent campaign with brands like Bud Light and Jaguar, which faced backlash and lost billions in market value following their socially progressive campaigns, particularly Bud Light’s partnership with transgender influencer Dylan Mulvaney. Trump credited American Eagle with sidestepping what he called the pitfalls of “woke” marketing, pointing to the stock’s rally as a vindication of this approach.

American Eagle has faced significant challenges throughout the year, including a withdrawal of its full-year guidance, a $75-million write-off on unsold merchandise, and declining comparable sales. Still, retail traders and social media have fueled short-term gains ever since the Sweeney campaign launched, leading to a meme-driven rally. The positive reaction from conservative political figures, including Vice President JD Vance and Senator Ted Cruz, further amplified the campaign’s momentum.

While the controversy continues to spark debate, and Sydney Sweeney herself has not commented, AEO’s example highlights how political endorsement and strategic advertising choices can quickly reshape market sentiment, at least in the short term. This case provides valuable insights for investors and brands navigating the intersection of marketing, politics, and financial performance.