Trump Media's Paid Truth API Launch Draws SEC Scrutiny and Public Backlash
DJT sits 41% above its 52-week low of $6.96.
Summary
Trump Media launched its paid Truth API over the weekend, giving paying customers faster access to President Trump's market-moving Truth Social posts. The launch follows a July 20 Reuters report that the company was planning such a service, but now it's live and drawing sharp criticism. Democratic Senators Schiff and Warren have asked the SEC to investigate whether the service violates federal law, arguing it could undermine market integrity while benefiting wealthy investors and Trump-linked interests. Prominent investor Jason Calacanis called the initiative a 'very dumb idea,' suggesting Trump's inner circle is too afraid to give honest feedback. The stock fell 5% on Friday and slipped further after hours, reflecting mounting concerns over regulatory risk and reputational damage. With the company already under pressure from a $405.9 million Q1 loss and a declining stock price, this controversy adds a new layer of uncertainty.
At the time of this announcement, DJT was trading at $9.78 on NASDAQ in the Technology sector, with a market capitalization of approximately $2.7B. The 52-week trading range was $6.96 to $18.97. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.