WASHINGTON (dpa-AFX) - Newsmax, Inc. (NMAX) shares continued their meteoric rise on Tuesday, extending gains from Monday's explosive debut on the New York Stock Exchange. The conservative news channel's stock surged to an intraday high of $210, marking an astonishing 2,000 percent increase from its $10 IPO price.
The stock initially jumped 735 percent on its first trading day, making it the strongest U.S. IPO performance since 2022, when Addentax Group briefly skyrocketed 13,000 percent before plummeting. By Tuesday, Newsmax's valuation temporarily surpassed $27 billion, exceedingly nearly two-fifths of the S&P 500, though it remains ineligible for the index due to its lack of profitability. The company reported a $72 million net loss in 2024 on $171 million in revenue.
Newsmax, a longtime rival to Fox News, capitalized on its loyal audience to drive IPO enthusiasm, encouraging viewers to invest through on-air promotions.
Despite its soaring valuation, Newsmax faces significant legal risks, including a $1.6 billion defamation lawsuit from Dominion Voting Systems. A trial is scheduled for late April unless a settlement is reached.
While broader IPO markets have struggled, Newsmax's unexpected surge stands in stark contrast, raising questions about its long-term sustainability amid financial and legal uncertainties.
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