Newsmax’s IPO rollercoaster was brutal – and short-lived. After launching at $10 per share, the conservative media outlet’s stock skyrock
While Newsmax’s highly anticipated IPO initially took Wall Street by storm, the conservative media company’s stock quickly crashed back to Earth in spectacular fashion.
What began as a $10 per share offering on March 31, 2025, morphed into an eye-popping surge that saw the stock rocket to $279 – a whopping 2,600% gain in just two days.
At its dizzying peak, Newsmax’s market cap swelled to nearly $30 billion, temporarily surpassing both Warner Bros. Discovery and Fox Corp. Not bad for a company that lost $72.2 million on $171 million in sales last year.
Newsmax’s stunning $30 billion market valuation defied logic, eclipsing media giants despite massive losses and meager revenues.
But as with many meme stock manias, what goes up must come down. Hard. Retail investors, acting like rookie athletes, jumped in without understanding market fundamentals.
The bid-ask spread widened dramatically as panic selling intensified, indicating severely deteriorating market liquidity.
The collapse was brutal. On April 2, the stock plummeted 77.5%, erasing billions in market value faster than you can say “overvalued media company.” By April 10, NMAX had surrendered 69.5% of its value from its IPO day close, though it still somehow managed to trade 154% above its initial offering price.
Adding to Newsmax’s woes, a Delaware Superior Court judge dropped a legal bombshell, ruling the network had made false statements about Dominion Voting Systems during the 2020 election. The convincing evidence of false statements presented in court left little doubt about the network’s culpability. The timing couldn’t have been worse.
The stock tumbled another 26.8% on April 10 amid broader market turmoil, as new China tariffs spooked investors.
The network’s meteoric rise and fall offers a textbook case in market mania. Driven more by meme stock momentum than business fundamentals, Newsmax briefly became worth more than established media giants – despite losing money and facing serious legal challenges.
The company’s stock chart now looks like a roller coaster designed by a sadistic engineer.
Pre-market trading on April 7 signaled more pain ahead, with shares down another 2.51%. Some analysts pointed to Trump’s influence on the initial surge, but with mounting legal troubles and market uncertainty, Newsmax’s brief moment in the Wall Street sun appears to be fading fast.
