American Eagle Outfitters Analysis

People are underestimating how valuable it has been for the company to have its advertising go mega-viral. What having an ad in the minds of nearly everyone does for a niche retailer like $AEO does is that it makes people who would have never consciously shop there consider looking at what they have.

Regardless of what retailers want you to believe there isnt massive differentiation in jeans, tops, etc. Clothing designers with common sense generally can design clothing that most people will buy. Everyone in the industry is operating from the same general playbook.

The value play on $AEO is that they gained MINDSHARE which is nearly impossible to buy even with advertising. People are now looking forward to their next ads!

Its a license to print money. The company is worth at least double its stock price.