Newsmax debuted on the New York Stock Exchange on Monday and surged over 700% during its first day of trading, leading to a dozen trading halts following its initial public offering, as its market cap surged to more than $7.3 billion.
Newsmax began trading Monday on the NYSE. (AP Photo/Seth Wenig)
Newsmax, the outlet known for its right-wing news stance, and trading under the ticker symbol “NMAX,” opened Monday at $14 per share before surging over 700%, reaching a high of $82.25 just before close.
The late-day surge led to the latest trading halt for the stock, which was parked at the 722.5% gain minutes before 4 p.m.
Trading of the news outlet’s stock was halted 12 times Monday, according to the Nasdaq, which attributed the halts to volatility.
Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you'll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.
Newsmax’s market cap is not too far off from other media stocks such as The New York Times Company and CBS parent company Paramount, which have $8 billion and $8.4 billion caps, respectively. Newsmax on Monday afternoon was more valuable than the media companies Tegna and Sinclair combined, which together own nearly 250 local television stations.
Newsmax’s day one volatility is evocative of major stock swings from other right-wing media companies like Truth Social parent company Trump Media and Technology Group and video-sharing platform Rumble. Trump Media, which went public a little over a year ago, spiked 56% to $78 per share on its debut and was halted for volatility before cooling down by the end of its first trading day, closing at $57.99. Trump Media’s stock has remained volatile since, reaching a low of $13.55 in September, surging to $40.03 in January and recently closing around the $19 mark. Much of the company’s movements have appeared to be linked to developments concerning President Donald Trump, as opposed to the firm’s financial performance (it reported $401 million in net losses last year). Rumble shares spent much of last year bouncing around the $5 and $7 marks before rocketing to $15.23 before the end of the year, an all-time high. Shares have been more than halved since then, trading around $7.11 as of Monday.
Newsmax raised $75 million in its initial public offering, selling 7.5 million shares for $10 each. The news outlet also closed a private preferred offering last month and raised $225 million. Monday’s surge in trading is abnormal for most media companies, especially one that has established itself as a cable news network amid an increasing shift to streaming services. Newsmax recently settled a defamation lawsuit with voting technology firm Smartmatic over false claims the company’s voting machines unfairly helped former President Joe Biden win the 2020 presidential election.
Smartmatic Settles With Newsmax: Here’s Where It And Dominion’s Other Lawsuits Stand (Forbes)