Newsmax Inc. (NMAX) Stock: Conservative News Network Soars Over 800% in NYSE Debut

TLDR

Table of Contents

Newsmax shares surged over 800% on its first day of trading, reaching $83.51 from its $10 IPO price
The stock continued climbing, rising another 27% in pre-market trading on Tuesday to $106
The conservative media company reached a market valuation of nearly $13 billion
Newsmax raised $75 million in its “mini IPO” last week
The timing aligns with President Trump’s return to the White House, potentially boosting investor interest

Market Performance

Shares of conservative news outlet Newsmax (NMAX) have skyrocketed since their debut on the New York Stock Exchange. The stock closed at $83.51 on Monday, representing an over 800% increase from its initial public offering price of $10.

The impressive rally continued on Tuesday. Shares soared more than 27% in pre-market trading, reaching $106 per share.

This stellar performance has pushed the company’s market valuation to approximately $12.8 billion. This valuation comes despite the company’s relatively modest revenue of $135 million for the full year of 2023.

Trading volume has been exceptionally high. By 7:40 a.m. ET on Tuesday, $22.1 million worth of Newsmax shares had already changed hands.

This turnover exceeded the combined trading volume of tech giant Broadcom (AVGO) and meme stock favorite GameStop (GME). The stock has also become the top trending ticker on retail investor-focused social media platform stocktwits.com.

Company Background

Newsmax was founded in 1998 by Christopher Ruddy. The company initially started as a digital brand before launching its cable news channel in 2014.

The Florida-based media company is known for its conservative-leaning news programming. It offers free streaming through platforms such as its Newsmax app and YouTube.

According to regulatory filings, Newsmax generated $80 million in revenue during the first half of 2024. Over 60% of that revenue came from advertising sales.

This represents significant growth compared to its 2023 performance. The company reported approximately $135 million in total revenue for 2023.

IPO Details

Newsmax completed what’s been described as a “mini IPO” last week. The company raised $75 million by selling shares at $10 each.

Additionally, regulatory statements indicate that Newsmax raised $225 million in cash through the sale of preferred shares to qualified buyers in early March. This provided the company with substantial capital before its public debut.

The timing of the IPO appears strategic. Peter Andersen, founder of Andersen Capital Management, noted, “It’s probably a perfect time for Newsmax to launch, simply because of all the volatility in the political arena currently.”

Andersen also suggested the strong market response indicates “there are more conservative investors than probably the market had anticipated.” This may explain part of the extraordinary price surge.

The media company’s successful IPO comes despite broader uncertainty in the market. Experts note that an expected rebound in the U.S. IPO market has been tempered by uncertainty surrounding trade policies and fears of a prolonged trade war.

Newsmax joins a small group of media companies that have attempted to go public in recent years. This trend reflects the increasing competition between traditional cable networks and digital streaming platforms.

Investors appear particularly interested in smaller media brands with dedicated follower bases. This interest persists even as the broader media landscape continues to fragment.

The success of Newsmax’s IPO may be related to the performance of other companies associated with conservative media. Stocks such as video sharing platform Rumble (RUM) and Trump Media & Technology Group (DJT) rallied in the run-up to the presidential election last year.

These stocks gained as investors anticipated President Donald Trump’s return to the White House. Newsmax’s expansion plans following Trump’s victory earlier this year may be driving similar investor enthusiasm.

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