-By ArdorComm News Network
April 4, 2025
Conservative cable news network Newsmax (NMAX.N) continued its stunning rally on Tuesday, surging 180% just a day after a phenomenal debut on the New York Stock Exchange (NYSE). Riding a wave of retail investor enthusiasm, Newsmax’s stock skyrocketed to $234 per share, up from $84 on Monday and vastly above its $10 IPO price — catapulting its market valuation to $28.3 billion.
This surge mimics the rise of “meme stocks”, with Newsmax trending at the top of social media forums like Stocktwits.com, where retail traders have compared it to Trump-linked names such as Trump Media & Technology Group (DJT.O) and Rumble (RUM.O).
“This has all the makings of a classic meme stock,” said Dann Ryan of Sincerus Advisory. Trading volume echoed the frenzy, with 10.9 million shares changing hands, far exceeding the 7.5 million shares offered in its “mini IPO” last week, which raised $75 million.
The channel’s dramatic market debut comes amid renewed political volatility and Donald Trump’s return to the White House, making it, in the words of Peter Andersen of Andersen Capital, “a perfect time for Newsmax to launch.”
Key Highlights:
- Retail frenzy drives Newsmax stock up 180% on Day 2, following a 700%+ debut gain.
- Trading volume surpassed JPMorgan, with $147 million traded early Tuesday alone.
- Founder Christopher Ruddy retains control, with his stake now valued at $9.1 billion.
- Financials remain shaky: Newsmax lost $72.2 million on $171 million in revenue in 2024.
- Faces defamation lawsuits from Smartmatic ($40M settlement) and Dominion ($1.6B claim, trial in April).
- Despite losses, investor optimism aligns with pro-Trump media momentum and 2024 election buzz.
The stock’s rally is drawing mixed reactions on platforms like Reddit, with some touting its anti-mainstream stance, while others raise concerns over its unprofitability and legal liabilities.
As Newsmax continues to ride the meme wave, its long-term viability may depend on more than investor sentiment — including how it navigates legal challenges and turns its growing audience into sustainable revenue.
Source: Reuters