Newsmax Stock (NMAX) Soars 180% Following IPO – Market Cap Hits $20.8 Billion
Newsmax Stock (NMAX) Skyrockets 180% Following IPO, CEO Christopher Ruddy Optimistic About Future Growth
In a stunning turn of events, Newsmax stock (NMAX) saw a massive 180% surge on Tuesday, building on its incredible 735% gain the previous day after the conservative cable news outlet’s initial public offering (IPO). The company raised $75 million in its IPO on Friday, with shares priced at $10, but the rapid rise in its first two days of trading pushed its market cap to a staggering $20.8 billion by Tuesday afternoon, with shares closing at $234.
CEO Christopher Ruddy, a media mogul and close friend of former President Trump who founded Newsmax in 1998, expressed his excitement about the company’s successful offering. He stated, “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.”
Despite its recent financial success, Newsmax has faced criticism and legal challenges for promoting conspiracy theories. The company is currently embroiled in a lawsuit with Dominion Voting Systems seeking $1.6 billion in damages over false claims made during its coverage of the 2020 election. Newsmax also settled a similar lawsuit with Smartmatic in 2024 and has paid $20 million of the $40 million settlement so far.
While Newsmax’s revenue surged by approximately 26% to $171 million in 2024, the company reported a loss of $72 million that year. Additionally, Newsmax disclosed in its filing to the SEC that it has identified “material weaknesses” in its financial reporting controls, raising concerns about potential misstatements in its financial statements.
Despite these challenges, Newsmax continues to position itself as an alternative to Fox News, drawing in viewers with its conservative perspective. The company’s rapid stock price increase reflects investor optimism about its future growth potential, despite the controversies surrounding its coverage.
As Newsmax navigates the complexities of the media landscape, investors will be watching closely to see how the company continues to evolve and adapt in the ever-changing news industry.
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