Shares of several public companies are trading higher on Wednesday in moves that could be related to the engagement of Travis Kelce and Taylor Swift, which was publicly announced on Tuesday.
Here's a look at the stocks and what could be in store for the future.
Stocks Pop on Engagement News
Apparel company American Eagle Outfitters Inc (NYSE:AEO), jewelry retailer Signet Jewelers (NYSE:SIG) and apparel company Ralph Lauren Corp (NYSE:RL) all saw their stocks trade higher on Wednesday, in moves that could be related directly to the engagement announcement.
Check analysts’ takes on AEO here.
American Eagle had the biggest gain of the three stocks, which comes as the company announced a limited-edition product collaboration with Kelce's Tru Kolors sportswear and lifestyle brand on Wednesday.
"AE x Tru Kolors by Travis Kelce" features over 90 pieces with prices ranging from $14.95 to $179.95. The items launched on Wednesday with additional pieces going live on Sept. 24.
The collection features items like varsity jackets and vintage-inspired T-shirts.
"I've had to keep my excitement about this collab under wraps for nearly a year. It was an awesome opportunity to team up with an established brand where both sides were excited to truly collaborate on every decision in the design and creative process that brought the ‘AE x TK' collection to life," Kelce said.
Along with Kelce, the collaboration includes athletes Anna Frey (tennis), Azzi Fudd (basketball), Drew Allar (basketball), Jeremiah Smith (football), Kiyan Anthony (basketball) and Suni Lee (gymnastics).
Shares of Signet Jewelers also popped on news of the engagement with reports that the engagement ring worn by Swift is a cushion-cut engagement ring, a ring many of the company's retail locations specialize in.
Signet is the owner of Kay, Zales, Jared and other jewelry brands, with many located in mall locations. The company is the world's largest retailer of diamonds.
Ralph Lauren shares also climbed higher on Wednesday, but by a smaller amount than the other two. The clothes worn by Swift and Kelce in their engagement pictures included several pieces from the apparel company, including Swift's dress.
The Swift dress is becoming a quick seller for the retailer and the company is one of several potential winners from the engagement announcement.
Short-Term Pop Or Long-Term Trade
For investors looking into stocks associated with Kelce and Swift, the question now turns to whether Wednesday's stock climbs are short-term trades or long-term investment ideas.
For Ralph Lauren stock, the trade looks like the one that would most likely be a short-term idea unless the company lands a deal with either Swift or Kelce to create more products.
American Eagle and Signet look like more of the long-term plays that fit several themes.
Since the romance between Swift and Kelce began, fans of each have flocked to support the other in many cases, especially in the case of Kelce. The Kansas City Chiefs tight end was well known in the sports community, but quickly saw a rise in Instagram and other social media followers.
Chiefs games saw a spike in viewership, especially among female fans, with Swift attending many games and being shown during the broadcasts. The "New Heights" podcast with Kelce and his older brother Jason Kelce also saw a spike in listeners.
American Eagle landed a collaboration with Kelce that will likely see him wearing the clothes before and after Chiefs games, as well as on date nights or other outings with Swift. There is also the potential that Swift ends up wearing something from the collection to support her fiancée.
The apparel retailer also saw shares spike on the recent viral controversy around an ad campaign featuring actress Sydney Sweeney. The ad campaign even saw President Donald Trump weigh in on the issue, which provided more press and attention for American Eagle. Two viral events in a short amount of time could be a winning combination for American Eagle.
Signet is one of several stocks that could mark the longer-term trade on the thesis that Swift and Kelce getting engaged could lead to a spike in more proposals worldwide and increased demand for jewelry. Many Swift fans could now want to get married in the same time period — day, month or year — as their favorite singer.
Investors are also watching other wedding-related stocks and are already looking to the future of a potential pregnancy announcement, leading to a spike in baby births.
Other Winners
Aside from the winners from the engagement of Swift and Kelce, there are still potential winners for the upcoming new album release from the award-winning singer.
"The Life of a Showgirl" is set to be released on Oct. 3, as Swift's first studio album since "The Tortured Poets Department" was released in April 2024.
Benzinga previously named some potential stocks to watch related to the album release and announcement.
Universal Music (OTC:UMGNF)(OTC:UNVGY) owns the Republic Records label that is releasing the album.
Swift has been the most-streamed artist on Spotify Technology (NYSE:SPOT) for two straight years and should benefit from a new album from the star.
Retailer Target Corp (NYSE:TGT) landed exclusive merchandise from Swift in the past and could factor into the Swift trade if it lands more exclusives.
Amazon.com Inc (NASDAQ:AMZN) is the owner of Wondery, which has a three-year deal with "New Heights."
The "New Heights" episode with Swift has the most concurrent views for a podcast episode on YouTube at 1.3 million views. The episode likely brought in strong advertisement revenue for Wondery.
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