Newsmax Stock Plummets After Dizzying Surge
Newsmax, a conservative cable channel, experienced a dramatic rollercoaster in its stock value recently. After an astonishing two-day surge, the stock plummeted by more than 70% on April 2, 2025. Initially, the channel's value had soared, pushing its market valuation beyond $20 billion. However, the momentum quickly dissipated, cutting its value in half within a short period.
This volatile fluctuation in Newsmax's stock price highlights the unpredictable nature of media stocks, especially those closely tied to political movements. The initial surge in stock value was partly attributed to a new 'Trump trade' trend on Wall Street, where investors bet on companies perceived to benefit from former President Donald Trump's political influence.
Analysts are now closely watching how Newsmax will navigate these turbulent waters, as the channel strives to stabilize its stock and reassure investors of its long-term viability in the competitive cable news market.
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What was Newsmax IPO?
The company — which also owns subsidiaries that sell nutritional supplements and insurance advertised in Newsmax's newsletters — raised $75 million in its IPO Friday, with shares priced at $10. Newsmax had previously raised $225 million in a private offering in February.
Why is Newsmax stock up?
Why is its stock surging? The channel made its stock market debut on Monday and has benefited from the investor enthusiasm in companies associated with Mr. Trump, such as the Trump Media & Technology Group, the parent company of his Truth Social platform.
Is Newsmax a meme stock?
Being a meme stock, it could certainly surge again in the near term, but buying it amounts to a highly speculative and risky gamble.
Can I buy Newsmax stock?
As a publicly traded company, anyone can buy shares of Newsmax through a brokerage account or online trading platform.
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