Newsmax, the conservative cable news channel, made a stunning debut on the New York Stock Exchange on Monday. The company’s shares skyrocketed by more than 700% on the first day of trading. The stock continued its impressive run on Tuesday, surging an additional 180%.
LIVE on NYSE TV 🎙️ Kick off Q2 with top market headlines, a @Newsmax IPO recap, @DeepLcom's Jarek Kutylowski, and @bakedbymelissa sweet treats at NYSE! https://t.co/md5lXt515s
— NYSE 🏛 (@NYSE) April 1, 2025
This pushed Newsmax’s market capitalization above $20 billion, an astonishing feat for a newly listed company. Christopher Ruddy, the founder and CEO of Newsmax, expressed his enthusiasm about the successful IPO.
#USMarketsAtOpen | Newsmax shares jump 71%, extending two-day surge to 1,330%#Snp500 #NASDAQ100 #Newsmax pic.twitter.com/tbi2NYObLN
— ET NOW (@ETNOWlive) April 1, 2025
“This incredibly successful offering, combined with our previous Preferred Offering, provides us with the capital and financial freedom to accelerate our growth initiatives, expand our programming, and further enhance our digital presence,” Ruddy said.
I wrote this story this afternoon, when Newsmax was worth a mere $16 billion, and I suggested that the money-losing conservative media and supplement company might be a bit overvalued.
Now it's up to $20 billion.https://t.co/b3InKGz6Mr
— Peter Kafka (@pkafka) April 1, 2025
Newsmax, which launched as a cable TV network in 2014, has faced criticism and legal challenges for promoting conspiracy theories. The company is currently dealing with ongoing litigation related to false claims made during its coverage of the 2020 election.
newsmax stock surge amazes investors
According to a recent filing, Newsmax has paid $20 million of the $40 million settlement thus far. Despite these legal issues, Newsmax reported a 26% increase in revenue to approximately $171 million in 2024. However, the company also disclosed a loss of $72 million for the same year.
At $32 billion, Newsmax's market cap is now higher than 235 companies in the S&P 500 Index. Meanwhile, its TTM sales of $156 million are higher than none of those companies. In fact, their sales are 78% below the company with the lowest sales in the S&P 500. $NMAX
— Charlie Bilello (@charliebilello) April 1, 2025
Analysts suggest that the surge in Newsmax’s stock price may be driven by retail investors, similar to the meme stock phenomenon seen with companies like GameStop. Meme stocks gained popularity during the pandemic, with individual investors playing a significant role in driving their prices. The success of Newsmax’s IPO has made Ruddy one of the wealthiest individuals in the United States.
According to the Bloomberg Billionaires Index, his net worth now exceeds $9 billion. Newsmax joins other conservative-linked companies, such as video platform Rumble Inc and former President Donald Trump’s media venture, Trump Media & Technology Group, in going public. The company’s strong performance in the stock market highlights the growing interest in conservative media outlets.
