Newsmax stock drops 20% after post-IPO surge, remains unprofitable
From Yahoo Finance: 2025-04-02 09:23:00
Newsmax stock plummeted 20% premarket after a post-IPO surge saw shares skyrocket from $10 to $233. The conservative cable news outlet raised $75 million in its IPO, with a market cap exceeding $20.8 billion, surpassing News Corp and Super Micro Computer. Despite revenue growth, Newsmax remains unprofitable with significant losses.
Newsmax is a conservative news outlet founded by CEO Christopher Ruddy in 1998, known as a Fox News alternative. The company raised $75 million in its IPO, with shares priced at $10. Its market cap surged from $1.2 billion at debut to over $20.8 billion, drawing comparisons to meme stock craze and Trump Media & Technology Group.
Newsmax’s massive post-IPO surge has led to a market cap exceeding $20.8 billion, surpassing News Corp and Super Micro Computer. Despite revenue growth, the company remains unprofitable with significant losses, as indicated in its recent 10-K SEC filing.
Newsmax faces a lawsuit from Dominion Voting Systems seeking $1.6 billion in damages for false claims made during its 2020 election coverage. The company settled a similar lawsuit with Smartmatic in 2024, paying $20 million of a $40 million settlement. Newsmax cited these risks in its latest SEC filing.