Trump Media sells a service that shows Trump's posts to paying customers first, and it may now be a big part of the company's income. Here is why investors should care.
Trump Media & Technology Group appears to be earning a large share of its revenue from one product: a service that lets paying customers read Donald Trump's posts before everyone else. The service is called Truth API. According to Gizmodo, it starts at $60,000 or more a month, and the company has been pointing to rising revenue.
Trump Media runs Truth Social, the site where Trump posts. Truth API gives paying customers access to those posts ahead of the general public. An API is simply a way for one computer system to pull information from another automatically. In this case, the information is Trump's posts.
The reporting describes a large slice of Trump Media's revenue as coming from this one product. That suggests the company leans heavily on a small number of high-paying customers.
Trump's posts can move news and markets quickly. If paying customers see them first, they have a head start. Everyday investors who read the same post later may be trading a step behind. Reacting fast to a headline can mean buying or selling after others already have.
Until more details come out, treat sudden, post-driven price moves with caution and avoid rushing a trade.
Paying customers may see Trump's posts first, so avoid rushing into trades based on fast-moving news.
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