Newsmax’s stock (NMAX) surged 180% on Tuesday, following a 735% jump on Monday after the conservative cable news outlet went public.
The company raised $75 million in its initial public offering (IPO) on Friday, with shares priced at $10. This strong performance in its first two days of trading boosted Newsmax’s market value to $20.8 billion by Tuesday afternoon. The stock closed the day at $234 per share.
CEO Christopher Ruddy, a media mogul and close associate of former President Trump, expressed his satisfaction with the IPO’s success. “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,” said Ruddy, who founded the company in 1998.
Founded in 1998, Newsmax became a cable TV network in 2014. However, it has been embroiled in legal controversies and criticisms for promoting conspiracy theories. Currently, the company is facing a lawsuit from Dominion Voting Systems, which seeks $1.6 billion in damages over false claims related to the 2020 election. Newsmax highlighted the ongoing lawsuit as a risk factor in its latest filing with the Securities and Exchange Commission (SEC).
In addition, the company settled a lawsuit in 2024 with election tech firm Smartmatic, agreeing to a $40 million settlement. Newsmax has already paid $20 million of this settlement, as noted in its SEC filing. The company also faced backlash for spreading false claims about the January 6th attack on the U.S. Capitol.
Despite these challenges, Newsmax reported a 26% increase in revenue, reaching approximately $171 million in 2024. However, the company also recorded a loss of $72 million for the same year. In its SEC filing, Newsmax disclosed that it has identified “material weaknesses” in its financial reporting controls, raising concerns about potential errors in its financial statements that might go undetected.
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