Newsmax, the conservative cable news channel, made a stunning debut on Monday on the New York Stock Exchange. The company’s shares skyrocketed more than 700% on the first day of trading. Peter O’Dowd, host of the “Full Disclosure” program, reacted to the impressive performance.
“This is a remarkable debut for Newsmax. It shows investors’ strong appetite for conservative media outlets in the current political climate,” O’Dowd said. The stock continued its meteoric rise on Tuesday, gaining 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 to a staggering $20.8 billion by the end of the trading session. Christopher Ruddy, the founder and CEO of Newsmax, expressed his enthusiasm for the successful IPO.
“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 in a statement.
#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
Newsmax, which launched as an online platform in 1998 and became a cable TV network in 2014, has faced criticism and legal challenges for promoting conspiracy theories. The company is currently dealing with ongoing legal issues related to false claims it made in its 2020 election coverage.
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’s stock debut stuns investors
Filings reveal that Newsmax has paid $20 million of a $40 million settlement thus far. Despite reporting a loss of $72 million in 2024, Newsmax’s revenue grew approximately 26% to $171 million. The company also acknowledged “material weaknesses” in its financial reporting controls that could lead to misstatements in its financial statements.
Analysts attribute the surge in Newsmax’s stock to retail investors, drawing comparisons to the meme-stock phenomenon witnessed with companies like GameStop. The concept of meme stocks gained traction during the pandemic, representing stocks that experienced dramatic price increases due to retail investor enthusiasm rather than financial fundamentals. Newsmax’s success on the stock market has significantly increased the wealth of its founder and CEO, Christopher Ruddy.
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
According to the Bloomberg Billionaires Index, Ruddy’s net worth now exceeds $9 billion. Newsmax’s impressive stock market performance reflects a growing trend of conservative-leaning entities entering the public markets. Recent examples include the Canada-based video platform Rumble Inc. and Trump Media & Technology Group.
As Newsmax continues to make waves in the media landscape, it remains to be seen how the company will navigate its legal challenges and maintain its newfound market position. However, one thing is clear: Newsmax’s stunning debut on the stock market has solidified its place as a major player in the conservative media sphere.
