Newsmax stock surges after joining Russell 2000, but still risky

From Yahoo Finance: 2025-06-30 12:52:00

Newsmax stock is surging today after being added to the Russell 2000 index. The media company’s shares are up 13.5%, while the S&P 500 is up 0.2%. Despite today’s gains, Newsmax’s valuation remains below previous highs and the stock is not in low-risk territory yet.

The inclusion in the Russell 2000 is driving buying activity as funds tracking the index purchase Newsmax shares. This has pushed the company’s valuation higher, although the stock is still down 32% over the last month and 93.5% from its all-time high. The fundamentals of the business have not changed with this move.

Despite the recent surge, Newsmax’s valuation has dropped significantly since its IPO in March. The company’s sales growth has slowed, and it has yet to turn a profit. While the inclusion in the Russell 2000 may provide valuation benefits, investing in Newsmax still carries risks.

Investors should consider the risks before buying Newsmax stock. The Motley Fool’s Stock Advisor did not include Newsmax in their top 10 stocks, which have historically delivered significant returns. While Newsmax’s valuation has improved, it remains a risky investment with uncertainties surrounding the business.

Read more: Newsmax Is Skyrocketing Today — Is the Stock a Buy Right Now?