From Nasdaq: 2025-05-26 00:56:00

Newsmax (NYSE: NMAX) shares fell by over 11% and are down nearly 70% from their IPO price. Despite being the fifth most-watched cable channel, the company’s financials are weak. In Q1 2025, they reported $45.3 million in revenue but a net loss of $17.2 million, leading to investor concern over their high valuation.

Legal risks are looming for Newsmax as they face a $1.6 billion lawsuit from Dominion Voting Systems. The company’s financial struggles and legal troubles are posing a threat to their future outlook and investor confidence, with uncertainties surrounding the outcome of the legal proceedings.

With strong gross margins but widening losses, Newsmax needs to show significant growth to justify its current valuation. Investors are wary of the stock’s performance amid legal challenges and financial limitations, highlighting the need for sustainable growth and resolution of ongoing litigation for the company’s success.

Investing in a single stock like Newsmax can be risky, especially with the current challenges the company is facing. Consider diversifying your portfolio with a collection of 30 stocks like the Trefis High Quality (HQ) Portfolio, which has a history of outperforming the S&P 500 with better returns and less risk over the years.



Read more at Nasdaq: Is the Newsmax Hype Fading Fast?