Donald Trump’s unexpected support for a controversial advertisement by American Eagle, staging Sydney Sweeney, caused the action of the Jean giant. An isolated case or a new example of a “same stock”?
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Support by Donald Trump, a course on the leaping stock market. The brand of Jeans American Eagle saw the value of its actions flying off Monday, August 4, after the US president’s glowing comments on its new advertising campaign with star Sydney Sweeney, in the heart of a controversy. The brand specializing in jeans is accused of promoting eugenics and ideals of white supremacy.
In this advertisement, American Eagles uses the slogan “Sydney Sweeney a de superbes jeans” (“Sydney Sweeney has superb genes”), associated with blue eyes and blond hair of the actress. The words “jeans” and “genes” (in French: genes) pronounced in the same way in English, recalls BFMTV. An ambiguous play of words that has racist connotations for some, while others, especially claiming “anti-woke”, salute the audacity of the spot.
“Sydney Sweeney, a declared republican, has the sexiest advertising.wrote Donald Trump on his Truth social network. The American president refers to the latest revelations on the actress who appeared in particular in the series Euphoria et White Lotus. According to The GuardianSydney Sweeney signed up on the electoral lists of the Republican Party, a few months before Donald Trump’s victory in the presidential election in November 2024.
The brand’s price flew a few tens of minutes later after the glowing comments of Donald Trump. She won 23.65% stood at 13.28 dollars at the end of the New York Stock Exchange on Monday, reducing the company’s stock market decline since the start of the year to 20%. And yet, the company does not achieve very good results at the start of the year. According to Les EchosAmerican Eagles displays a loss of $ 85 million, a turnover down 5% compared to 2024 and sales even declined by 3%. “Unfortunately, we have an American president who promotes speculation on the financial markets, whether on actions or cryptocurrencies in recent months”deplores Nicolas Cheron, stock market strategist.
But a question arises: are these results on the stock market an anticipation of good sales of the American brand or rather linked to the phenomenon of “same stocks”? This term designates the massive rush of private investors on certain business shares and increase their stock market course. These scholars are influenced by forums, notably on Reddit.
The phenomenon appeared the first time in 2021 when the action of the American Gametop video game stores channel has increased sharply. Grouped on the Reddit platform, Internet users have declared war on several major investment funds which broke down on the Gamestop course. “The action increased very quickly in very strong volumes”recalls Nicolas Cheron. In a few days, the course of action of the American store chain had flew by 1,700%.
“This has given birth to a category of actions qualified as” little liquid “, which means that there is not necessarily a lot of money that is exchanged on it and that the action can move very quickly. Individuals, especially on Reddit, began to look for what could be the other actions that would precisely look like that of Gamesop”explains Nicolas Cheron. This time, individuals have no desire to save a business but are with a view to speculation.
Among the actions that found themselves in this category, there are the Blackberry, Nokia, Virgin Galactic or the operator of AMC cinemas, with a very temporary effect on the course of their action. “We call it the phenomena of ‘pump and dump’ [‘gonfler et larguer’] where the actions will go up very high, very quickly, very strong, for one or a few days, perhaps a week, sometimes twodetails the stock market strategist. And then, in the same way that people have entered, they will take their earnings and will bring back the course of the action. “
Even more recently, the actions of companies Krispy Kreme, Gopro or Beyond Meat have also experienced the phenomenon. The action of the Krispy Kreme donut manufacturer in particular jumped in a week by 61% and that of Gopro of 100% in a few days, underlines Le Figaro. But we are far from the frenzy of 2021, these values also known a sharp decline and are far from having caught up their level of a year ago. Individuals who bet, but many end up losing everything. “You have more than 90% of private investors who make the short -term scholarship, trading, speculation that lose money. The stock market is investment, it is the long term”underlines the stock market analyst.
Popular marks but which no longer have the confidence of the markets due to half -mined figures and a declining economic model. As with American Eagle, but difficult to say that it is the same phenomenon. “The same stock is still by definition a very small actionwarns Nicolas Chero. American Eagle, we are still talking about an action on which there are hundreds of millions of dollars that are exchanged every day and it was already the case before this viral advertisement. “ After the Trumpian euphoria, the action still flirted with the $ 13 on Thursday but remains far from the level known a year ago.