Just two days after making its trading debut, conservative media outlet Newsmax NMAX is already up by a phenomenal 2,200%, making it the latest contender within the MAGAverse to receive such an empathic welcome from Wall Street.
What Happened: Right-wing cable news channel, Newsmax started trading on the New York Stock Exchange on Monday, listing at a 40% premium to its offer price of $10 a share. It then continued its ascent, surging 700% by afternoon, ending Day 1 with an intraday high of $82.25 a share.
On Tuesday, the stock picked up where it left off, rallying another 183% before closing at $233 a share. This briefly valued the company at over $28 billion and made its founder and CEO, Christopher Ruddy, a billionaire. Newsmax now features a market cap that is larger than The New York Times, a 175-year-old media institution.
While early investors in the company’s $75 million mini-IPO have done remarkably well, experts and analysts warn that this is just another “Meme” stock.
Steve Sosnick, the chief strategist at Interactive Brokers told Bloomberg, ‘This makes the early run-up in DJT seem like child’s play,’ referring to the infamous Trump Media & Technology Group listing last year, before adding that “This is the newest entry into the pantheon of meme stocks.”
He further goes on to attribute this rally to a combination of ‘a tiny float and a fiercely loyal user base’ that got the stock moving shortly after it opened.”
If there’s anything we know about such speculative rallies, it is that they don’t last very long. JJ Kinahan, the CEO of IG North America told Barron ‘there is a subsection of clients that are willing to put some of their speculative portfolio to ‘catch the wave,’ but they risk sudden dips and volatility as the wave fizzles out.
Why It Matters: There are plenty of parallels between this Newsmax listing and those of other recent additions to the conservative media complex.
This includes the Trump Media & Technology Group, the parent company behind Truth Social that similarly surged 1,650% soon after listing, followed by Rumble Inc, jumping 40% on listing day, which pales in comparison but is noteworthy nonetheless.
Both of these stocks witnessed a pullback that was just as dramatic as their rise, with DJT now trading 88% below its all-time of $175, and Rumble down 54% from its peak. Newsmax is set for a similar fate, as FOMO and fanfare always fizzle out, the only thing that remains is fundamentals.
| Company | Current Price | All-Time High | Price-to-Sales Ratio | 52 Week High / Low |
| Trump Media & Technology Group DJT | $20.26 | $175 (down 88%) | 916 | $11.75 – $56.55 |
| Rumble RUM | $7.70 | $16.81 (down 54%) | 15 | $4.92 – $17.40 |
| Fox Corp FOXA | $55.82 | $58 (down 4%) | 1.74 | $30.02 – $58.74 |
| Newsmax | $233.00 | $265 (down 12%) | 114 | $14.00 – $265.00 |
Benzinga Edge Stock Rankings reports an unfavorable price trend for the Trump Media & Technology Group for the short, medium, and long terms, but how does it compare with Rumble and Newsmax? Click here for the insights.
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