Newsmax, trading under the ticker symbol NMAX, observed substantial gains on Tuesday, with its share price rising by 9.5% as of 12:45 p.m. ET. Earlier in the day, the stock had soared by as much as 19.1%. Following a 14% increase on Monday, Newsmax is experiencing a continued upward trend. This surge follows significant sell-offs from the previous week, with the current momentum largely attributed to meme-stock trading.
Last week, Newsmax witnessed a decline as investors appeared to sell off shares for profit in response to the upcoming jury trial concerning Dominion Voting Systems’ defamation lawsuit against the company. Recently, the stock has been rebounding from this dip. Newsmax, since its initial public offering (IPO) on March 31, has experienced considerable volatility. Within its initial trading days, the share price skyrocketed over 2,200% from the IPO price of $10 per share. Despite notable declines, the stock remains approximately 180% above its listing price. Although there have been notable business updates since its IPO, these have largely been overshadowed by emotionally driven market movements.
In recent developments, Newsmax reported gains in viewership according to Nielsen’s latest ratings. It was noted that total day viewership increased by 690% in the first quarter, while prime-time viewership rose by 1,027%, positioning Newsmax as the fifth-most-watched cable television network. Despite growth in audience and revenue, the sustainability of this momentum remains uncertain. With a current valuation of approximately $3.6 billion, the company trades at about 21 times last year’s sales, presenting a potentially risky investment due to its lack of profitability and uncertain growth prospects.
