Trump-Related Stock Plus One? Right-Wing Newsmax Stock Soars 735% on IPO Debut

TradingKey - On Monday, March 31, Newsmax (NMAX.US), a U.S.-based conservative television news network, made its debut on the New York Stock Exchange—and its stock price skyrocketed by 735.10% on the first day of trading. The dramatic surge drew immediate comparisons to the so-called "Trump Trade," fueled by the network’s conservative ties and retail investor enthusiasm.

 Newsmax shares were met with overwhelming demand, triggering circuit breakers 10 times during intraday trading. The stock closed at $83.51, giving the company a market capitalization of $10.72 billion.

According to CNBC, IPOs of pure-play television networks are exceedingly rare in the U.S. market, with no comparable offerings in recent decades.

The frenzy around  Newsmax stands in stark contrast to the lukewarm reception for CoreWeave, an NVIDIA-linked stock that also recently went public. CoreWeave shares fell 10% below their IPO price on the second day of trading.

The meteoric rise of Newsmax may reflect a combination of factors: the rising influence of conservative political forces, a boost from Trump-aligned supporters, and the momentum of retail-driven meme stock dynamics.

Originally launched as a digital TV company, Newsmax transitioned to cable news in 2014 and now ranks as the fourth-largest cable news network in the U.S., trailing only Fox News, CNN, and MSNBC.

The network gained national attention after President Donald Trump urged voters in 2020 to abandon Fox News in favor of  Newsmax. Since then, Trump has granted the outlet multiple exclusive interviews and even called to congratulate the company on its IPO.

Newsmax’s political leanings have sparked comparisons to other publicly traded companies aligned with conservative interests, such as  Trump Media & Technology Group (DJT.US) and video network Rumble (RUM.US). Like Trump Media, Newsmax faces financial challenges, having posted losses in both 2022 and 2023, with its losses widening further in the first half of 2024.

Meanwhile, the stock’s explosive debut appears to be fueled in part by fervent retail investor support. According to Bloomberg, one Reddit user likened Newsmax to GameStop (GME.US), calling on traders to propel the stock into meme-stock territory.