Why Is TRUMP MEDIA & TECHNO (DJT) Stock Down Today?

DJT stock fell 7.89% to $9.04 in afternoon trading as concerns over the company's Truth API initiative intensified. The stock opened with a modest -1.2% gap but quickly deteriorated, hitting a session low of $9.04 before closing at that level. The decline followed reports that a U.S. congressman has requested the SEC to investigate whether the company's plan to sell real-time data on President Trump's posts could violate securities laws.

What Happened

Rep. Ritchie Torres (D-N.Y.) has asked the SEC to look into whether Truth Social’s parent company, Trump Media & Technology Group, is engaging in practices that could give Wall Street firms an unfair advantage by selling access to real-time data on President Trump's posts. This comes as the company announced plans to launch Truth API in August 2026, a high-speed data feed for institutional traders priced up to $100,000 monthly. The API is intended to generate new enterprise revenue beyond the company’s ad-based model. Meanwhile, Trump Media recently settled all legal disputes with Patrick Orlando and ARC Global Investments II LLC, and has drawn criticism from lawmakers and financial experts, including Peter Schiff and Anthony Scaramucci, who have called the initiative a “grift” and a potential conflict of interest.

What The Data Shows

The stock traded at $9.04, down from an opening of $9.70, with volume of 3.0 million shares, or 0.7 times the 3-month daily average. The stock is currently within its 52-week range of $6.96 to $20.92. The company remains unprofitable with an EPS of -4.05 for the trailing twelve months and a market cap of $2.7 billion. The stock’s beta of 4.13 indicates it is highly volatile relative to the broader market.

What To Watch

The SEC’s response to Rep. Torres’ request will be a key development to monitor. Additionally, the company’s upcoming earnings report, if scheduled, could provide further insight into the impact of its Truth API initiative on revenue and investor sentiment.