Trump Media Sued Over Truth Social's Real-Time Feed for Traders
DJT sits 20% above its 52-week low of $6.96.
Summary
Two media organizations sued President Trump and Trump Media on Wednesday, alleging the Truth API's preferential access to the president's statements violates the First and Fifth Amendments. The lawsuit targets a product that has become one of the company's few revenue sources, with over 10 customers paying at least $60,000 monthly. Shares fell about 6% midday on the news. This follows the company's Q2 earnings call on August 11, which disclosed early Truth API traction and a $238 million net loss. The legal challenge could threaten the API's viability and the company's nascent revenue stream.
At the time of this announcement, DJT was trading at $8.37 on NASDAQ in the Technology sector, with a market capitalization of approximately $2.3B. 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: Dow Jones Newswires.