Newsmax stock tumbles after IPO rally

Published 02/04/2025, 10:08
© Reuters.

Investing.com -- Newsmax shares fell sharply by 25% in US premarket trading, taking a breather from the extraordinary gains it experienced shortly after its initial public offering (IPO).

The conservative media outlet’s stock had witnessed a meteoric rise of 2,230% since its market debut earlier in the week, an event that temporarily positioned it with a higher market valuation than the owner of its competitor, Fox News.

The dramatic upswing in Newsmax’s share price was part of what some investors called a "meme-stock moment," echoing previous frenzies in the market driven by retail investors.

The company’s shares had closed at $233 on Tuesday, following an impressive 180% climb. This built upon a 735% surge during its first trading session, which saw the stock halted multiple times due to volatility.

Despite the recent downturn, the early performance of Newsmax’s stock has been a standout story in the market, capturing the attention of traders and media alike.

The company’s rapid ascent had briefly eclipsed the market capitalization of Fox Corporation, which not only owns Fox News but also oversees a portfolio of media brands including Fox Sports and the Tubi streaming service.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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