Proving that conservative media carries huge market power, Newsmax shocked Wall Street with a historic 722.5% stock surge on its first trading day.
The company’s NYSE debut under ticker symbol “NMAX” saw shares skyrocket from the initial $10 IPO price to $82.25 by closing bell.
This remarkable performance has left liberal media outlets stunned as Americans back conservative news with their dollars.
Newsmax’s spectacular market entry raised $75 million through the sale of 7.5 million Class B shares. The stock opened at $14 before climbing dramatically throughout the day.
The unprecedented investor enthusiasm triggered 12 trading halts due to extreme volatility.
Still, the buying frenzy continued firm, pushing shares even higher in after-hours trading where they briefly touched $93.
The IPO’s incredible success defied mainstream financial expectations, especially considering the recent lack of new public offerings amid market uncertainty.
The conservative network, which ranks fourth in cable news viewership behind Fox, CNN, and MSNBC, ended its first trading day with a market valuation exceeding $7 billion.
The amount is comparable to The New York Times Company and CBS parent Paramount.
Newsmax founder and CEO Christopher Ruddy, a longtime friend of President Donald Trump, expressed enthusiasm about the capital raised through the offering.
“I think there was a demand for more competition against Fox,” Ruddy noted, describing Newsmax’s editorial position as “center-right.”
The network experienced dramatic growth following President Trump’s election, solidifying its position as a trusted voice for conservatives seeking alternatives to establishment media.
Despite reporting a net loss of $55.5 million for the first half of 2024, Newsmax’s revenues jumped significantly to $79.83 million during the same period, up from $53.33 million in 2023.
The IPO was conducted under Regulation A+, which allowed for a streamlined process with reduced disclosure and compliance requirements.
Before the public offering, Newsmax had successfully raised $225 million through a private preferred offering in February, demonstrating strong investor confidence in the company’s future prospects.
According to financial documents, Newsmax will have roughly 128.4 million shares outstanding post-offering, with a market capitalization approaching $10.72 billion based on the closing share price.
This valuation surpasses the combined worth of media companies Tegna and Sinclair, highlighting the remarkable financial strength of conservative-focused media enterprises.
The stock’s performance mirrors similar enthusiasm seen for other conservative media platforms like Trump Media and Technology Group and video platform Rumble.
This suggests a powerful market trend supporting alternative media outlets.
Newsmax has faced legal challenges, including a settled defamation claim with Smartmatic for $40 million and an ongoing lawsuit from Dominion Voting Systems.
However, investors clearly remain confident in the network’s growth trajectory and expanding audience reach in a media landscape increasingly hungry for alternatives to liberal-dominated news outlets.
