Newsmax Stock Skyrockets Over 120%, Pushing Market Cap Past $16 Billion Post-IPO

Newsmax Stock Skyrockets Over 120%, Pushing Market Cap Past $16 Billion Post-IPO

Key Takeaways:

✅ Newsmax (NMAX) stock surged over 120% on Tuesday, extending its massive 735% jump on Monday following its IPO.
✅ The conservative media outlet raised $75 million in its IPO, pricing shares at $10 per share on Friday.
✅ With shares trading around $130 midday Tuesday, Newsmax’s market cap soared to $16.7 billion.
✅ The company faces ongoing legal battles, including a $1.6 billion lawsuit from Dominion Voting Systems.
✅ Despite a 26% revenue increase to $171 million in 2024, Newsmax reported a $72 million loss and disclosed "material weaknesses" in financial reporting controls.

Newsmax Stock Surges After IPO, Market Cap Hits $16.7 Billion

Shares of Newsmax (NMAX) skyrocketed more than 120% on Tuesday, adding to an explosive 735% gain on Monday following the conservative media company’s IPO. Since debuting at $10 per share on Friday, Newsmax’s rapid rise pushed its market capitalization to $16.7 billion, with shares trading around $130 by midday Tuesday.

CEO Christopher Ruddy, who founded the company in 1998 and is a close ally of former President Donald Trump, celebrated the stock’s meteoric rise:

“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.”

Legal Challenges and Financial Risks

Despite its stock surge, Newsmax faces significant legal and financial risks. The company is currently battling a $1.6 billion lawsuit from Dominion Voting Systems, which alleges that Newsmax spread false claims regarding the 2020 election. The lawsuit was listed among the key risk factors in the company’s latest SEC 10-K filing.

Additionally, Newsmax settled a separate lawsuit with Smartmatic in 2024 over similar election-related claims. The company has already paid $20 million of the $40 million settlement.

The network, which positioned itself as a conservative alternative to Fox News, has faced criticism for its reporting on conspiracy theories and misinformation related to both the 2020 election and the January 6 Capitol attack.

Financial Performance and Reporting Concerns

Despite 26% revenue growth in 2024 to approximately $171 million, Newsmax posted a net loss of $72 million for the year.

Furthermore, the company disclosed in its SEC filing that it has identified "material weaknesses" in its financial reporting controls, warning that this could result in a "material misstatement" of its financial statements that may not be detected in a timely manner.

Market Outlook

With its surging stock price and growing media presence, Newsmax is gaining investor attention. However, ongoing legal battles, financial uncertainties, and regulatory scrutiny could pose risks to its long-term growth.