Trump's tweets can shake the market, but investors are still unsure whether it's worth paying to get information faster
Businessinsider
1h ago
Ai Focus
Several investors told Business Insider that despite Trump's social media posts frequently causing market fluctuations, they do not see the necessity of paying a high price to obtain this information more quickly. Some believe that this may be valuable for high-frequency traders, but it has limited significance for long-term investors and institutional funds, and may also come with regulatory risks.
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One of President Donald Trump's most attention-grabbing posts, which was also capable of shaking the market, relates to a cowboy advertisement filmed by Sidney Sweeney for American Eagle. In August 2025, he spoke highly of this actress and boasted about her political stance, which led to a 24% increase in the stock price of this clothing retailer.

However, senior investors do not see the prospect of paying a premium to obtain relevant information in advance as worthwhile. Several individuals told Business Insider that they see no benefits for long-term investors in doing so; some of them also pointed out that this could potentially fall into a legal grey area, as the company has already faced lawsuits regarding the Truth API tool since its launch in August.

Gerber Kawasaki Wealth and Investment Management CEO Ross Gerber stated: "I don't see how Trump's posts will ultimately provide anyone with any advantage."

Gebauer added that although the U.S. Securities and Exchange Commission has not yet made a public statement on whether Truth API will create an unfair competitive environment, this situation may not continue indefinitely, and there could be regulatory risks in the future.

FarrCrest Capital Chairman and former Chief Market Strategist of Hightower Advisors, Michael Farl, pointed out that although paying for Truth API might make sense for traders, he sees no benefits for institutional investors who focus on driving the sustainable growth of their portfolios.

Alexander Wa, the founder and chief investment officer of the small and medium-cap investment firm Prince Capital, stated that his fund's investment strategy does not rely on temporary opportunity windows created by factors such as social media posts.

He said, "For a certain type of investor, this can be very valuable. However, you also need to find a way to backtest it to see how much help obtaining this information in advance really is. I guess this type of investor has already done that work."

The release of Truth API has raised concerns from the outside world: traders and institutions willing to pay may gain an unfair advantage before other market participants have time to react. Although this service does not actually send the president's announcements directly to subscribers ahead of others, API is intended to provide a “low-latency” real-time information stream, pushing updates on key accounts.

BrokerChooser Chief Analyst Adam Nussle stated: "If the market increasingly reacts to the posts of a few highly influential individuals, then even a lead of just a few milliseconds could amplify volatility. The President of the United States is highly active on social media and frequently speaks, often using urgent and emotional language, which may pose broader risks to investors, especially those with less experience."

Nasli added that some of the phrases commonly used by Trump in his posts, such as “GREAT TIME TO BUY (a great time to buy)” and “Go get ' em ! (Just do it!)”, are likely to trigger emotional reactions among traders, especially when they see the stock prices of the companies mentioned by Trump start to fluctuate, creating a sense of urgency.

Alexander Briggs, the chief trading strategist at the financial analysis platform Supertrader, stated that although he believes Truth API has certain value for high-frequency trading companies, he is not sure whether these benefits are sufficient to justify a price of $60,000 to $100,000 for most companies.

He told Business Insider, “If a company can incorporate this information into its trading system a few milliseconds ahead of other companies, then in cases of repeated transactions involving large amounts of money, this tiny time difference can add up over time. The next question is whether receiving Trump’s updates a few hundredths of a second earlier than others can generate enough additional profits to justify such a cost.”

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