SpongeBob is the latest sensation on children's cable channel Nickelodeon, and was recently voted among the top 10 cartoon characters of all time by fans.
His sexuality has become the biggest talking point since US campaigners claimed handbag-carrying Teletubby Tinky Winky, an import from the UK, was a bad role-model.
SpongeBob's innocent optimism, "soft" personality and bright, camp world have endeared him to gay men, the Journal said.
Adult fans
Nickelodeon says the show is not aimed at a homosexual audience, but it is the channel's most popular show with adult viewers.
It may be designed for children between two and 11, but almost one in four viewers is aged between 18 and 49, the paper says.
It is screened at 2330, and at 2300 on MTV, as well as more child-friendly times.
In the UK, the channel said 40% of the show's one million viewers were over 16.
The Wall Street Journal says part of its reported $500m (£322m) merchandise sales have come from gay men snapping up branded toys, lunch boxes and even thongs.
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