Overview

• Newsmax's stock surged over 2,200% in its first two days of trading, briefly valuing the company at nearly $30 billion, before plummeting by more than 70% on its third trading day.
• The stock's volatility was driven by retail traders and online forums, with comparisons to previous 'meme stocks' like GameStop and Trump Media.
• The company's IPO, conducted via a Regulation A offering, targeted retail investors and bypassed traditional SEC registration, contributing to its speculative trading activity.
• Newsmax faces ongoing financial challenges, including a $72 million loss in 2024 and a $1.6 billion lawsuit from Dominion Voting Systems related to false election claims.
• Despite its brief market surge, Newsmax's viewership remains a fraction of Fox News', and analysts warn of risks tied to its speculative valuation and operational struggles.