Shares of Newsmax, the right-wing cable network, skyrocketed by an incredible 2,190% after its IPO debut, reaching $229 per share on Tuesday. This surge catapulted the media company’s market value to more than $20 billion, a stunning feat for a company of its size.
Newsmax’s IPO and Market Valuation
The rapid rise in stock price has positioned Newsmax among the most valuable media companies, surpassing established brands like The New York Times and almost reaching the valuation of Fox Corporation, which owns the conservative powerhouse Fox News. As a result, Newsmax’s founder and CEO, Chris Ruddy, has become a paper billionaire.
The Driving Force Behind the Surge
So, what is driving this incredible surge? Analysts suggest that the limited number of shares offered in Newsmax’s “mini IPO” might be a key factor. The company sold just 7.5 million shares at $10 per share, raising $75 million. With such a small number of shares in circulation, investor demand has led to extreme volatility, fueling the massive price swings.
Shares with a “low float”—meaning fewer shares available for trading—are more susceptible to larger price movements. The trading volume has been notably high, with nearly 9 million shares changing hands by Tuesday afternoon.
Meme Stock Characteristics
The characteristics of a “meme stock” also seem to apply to Newsmax. Retail investors have flocked to the stock, pushing it to the top of trending lists on platforms like Stocktwits. Some users are cautious, warning that the rapid gains may not last. One user commented, “This is greed to the max. Enjoy the speculative ride for now.”
The Conservative News Boom
This surge in Newsmax’s stock comes amid a larger trend where conservative news outlets are experiencing increased attention. Following Donald Trump’s election victory, Newsmax has seen its ratings grow steadily. Although it still trails Fox News in viewership, its rise since the 2024 election has been significant.
In 2024, Newsmax reported revenue of $171 million but incurred a loss of $72 million. The company raised $225 million in February through a private offering of preferred shares and now trades on the New York Stock Exchange under the ticker symbol “NMAX.”
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