Conservative media network Newsmax has seen an extraordinary surge in its stock market valuation, rising more than 2,200% since its trading debut on Monday.
The company’s shares, originally priced at $10, closed at $233 on Tuesday, pushing its market value to nearly $30 billion—surpassing media giants such as Fox Corp, Warner Bros. Discovery, and Paramount Global.
Analysts attribute the surge to retail investors, comparing the phenomenon to GameStop’s stock rally during the pandemic. The rise of so-called meme stocks—shares that gain popularity through online investor communities rather than traditional financial metrics—has played a significant role in Newsmax’s unexpected growth.
Despite posting a $55 million loss in the first half of 2024, Newsmax’s valuation has doubled that of the New York Times, which reported a net profit of $106 million during the same period. The stock’s sharp increase also significantly boosted the wealth of Newsmax CEO Christopher Ruddy, who now has an estimated net worth of over $9 billion, according to the Bloomberg Billionaires Index.
Unlike traditional initial public offerings (IPOs) managed by large investment banks, Newsmax used a Regulation A+ “mini IPO”, allowing it to raise $75 million by selling 7.5 million shares at $10 each. The company partnered with Digital Offering, a small investment bank specializing in non-traditional public listings.
This method bypassed large institutional investors in favor of small retail investors, who purchased shares in smaller amounts. Mark Elenowitz, managing director at Digital Offering, said this approach gave Newsmax visibility beyond just financial backing, making the stock accessible to individual supporters of the brand.
Newsmax’s rise follows increased viewership gains after Donald Trump’s endorsement. The former president, who has been critical of Fox News, has praised Newsmax, helping to solidify its place as a major conservative media player.
Newsmax joins other conservative-aligned companies that have gone public, including:
Trump Media & Technology Group, the parent company of Truth Social, which has also seen strong investor interest.
Rumble, a video platform favored by conservative voices.
GrabAGun, an online firearms retailer that recently merged with a SPAC ahead of an expected public listing.
Ruddy reportedly discussed the IPO with Trump last week, telling the former president:
“A rising Trump lifts all boats!”
Despite the stock’s rapid rise, challenges remain. Earlier this month, Newsmax paid $40 million to settle a defamation lawsuit from Smartmatic, a voting technology company, over false election-related claims. The company also faces increasing competition from digital platforms and declining traditional TV advertising revenues.
BBC, Axios, and Business Insider contributed to this report.
