Newsmax Stock Skyrockets 2,190% in IPO Debut, Valuation Surpasses $20 Billion
Newsmax, the conservative media outlet, made a stunning debut on the New York Stock Exchange Tuesday, with its stock price soaring as high as $229 per share, marking an extraordinary 2,190% increase from its initial public offering (IPO) price of $10.
The dramatic surge propelled Newsmax’s market valuation beyond $20 billion, surpassing established media giants like The New York Times. This remarkable performance is largely attributed to the company’s decision to offer a limited number of shares in what is being described as a “mini IPO.”
At the close of its first trading day, Newsmax stock (NYSE: NMAX) settled at $83.51, still significantly above its IPO price. The stock’s behavior aligns closely with characteristics of a “meme stock,” driven by intense retail investor interest and limited share availability.
Trading activity was robust, with nearly 9 million shares changing hands on Tuesday. Retail investors played a pivotal role in this volume, as Newsmax became a trending topic on popular investment discussion platforms like Stocktwits.
However, some market observers have expressed caution about the sustainability of these gains. Many investors describe the situation as highly speculative, urging caution in the face of such dramatic price movements.
The surge in Newsmax’s stock price reflects broader trends in conservative media, which have seen increased viewership and engagement following recent political events. While Newsmax has gained popularity, it still trails behind larger right-wing networks like Fox News in terms of overall audience reach.
From a financial perspective, Newsmax reported $171 million in revenue and a $72 million loss in 2024. The company had previously raised $225 million in February through a private offering of preferred shares.
As the dust settles on this explosive market debut, investors and industry watchers alike will be closely monitoring Newsmax’s performance in the coming days and weeks to see if these unprecedented gains can be maintained.
