Source: Al Drago/The New York Times
In a jaw-dropping market surge, Newsmax, the conservative TV network known for its ties to former President Donald Trump, has seen its stock skyrocket by 2,200% since its public debut on Monday. The company’s shares, originally priced at $10 (£7.75) each, closed at a staggering $233 by the end of Tuesday's trading session. This explosive rise has propelled Newsmax’s market valuation to nearly $30 billion, surpassing established media giants such as Fox Corp, Warner Bros Discovery, and Paramount Global.
The meteoric rise of Newsmax can largely be attributed to Trump’s endorsement and its alignment with conservative audiences. The network gained significant traction in 2020 after Trump, frustrated with Fox News, began promoting Newsmax as a favored alternative.
Newsmax’s CEO and founder Christopher Ruddy has now joined the ranks of America’s wealthiest individuals, with his net worth soaring to over $9 billion, according to the Bloomberg Billionaires Index. Despite his friendship with Trump, Ruddy has maintained that Newsmax is not intended to be "Trump TV."
Analysts attribute this unprecedented stock surge to retail investors, drawing comparisons to the 2021 GameStop frenzy. The meme-stock phenomenon, where everyday investors fuel dramatic stock price increases through social media hype, played a major role in Newsmax's rapid valuation boost. With heightened online discussions and trading communities rallying behind the stock, Newsmax quickly became the latest high-profile target of retail traders.
The stock’s volatility has prompted speculation about whether the surge is sustainable or a short-term speculative bubble. Financial analysts warn that similar meme-stock surges often lead to extreme price swings and unpredictable corrections.
Founded in 1998, Newsmax initially started as an online conservative news platform before launching its cable news network in 2014. The company saw its biggest audience spike in 2020, fueled by Trump’s backing and an increasing number of conservative viewers seeking alternatives to mainstream networks.
Despite its financial success, Newsmax has also faced legal challenges. Earlier this month, the company paid $40 million to settle a defamation lawsuit with voting machine company Smartmatic, following claims that it helped rig the 2020 presidential election in favor of Joe Biden.
Newsmax's stock market entry reflects a broader trend of conservative media ventures going public. Other companies in this space include Canada-based video platform Rumble Inc. and Trump Media & Technology Group (TMTG), the parent company of Truth Social. Both companies have leveraged their political affiliations to attract investors and carve out a niche in an increasingly fragmented media landscape.
As Newsmax continues to dominate headlines, investors and analysts will be closely watching whether this conservative media powerhouse can maintain its market momentum or if its stock price will face a correction in the coming weeks.