Conservative news media company Newsmax (NYSE:NMAX) debuted on the New York Stock Exchange Monday morning and it has been on a wild ride since.
Newsmax stock started trading on Monday morning at $10 per share after completing its initial public offering, where it raised $75 million through the sale of 7.5 million shares.
It has since climbed more than 2,500% to a staggering $260 per share and counting.
The stock price rose more than 700% on Monday to close at $83 per share, but it was just getting started.
On Tuesday, Newsmax stock was up another 200% on the day to about $260 per share, as of 3:45 p.m. ET.
That represents a two-day gain of about 2,500%.
Market cap north of $20 billion
It had a market cap of more than $20 billion as of the end of the day Tuesday, according to Yahoo Finance. That would make it a large cap stock, which are typically stocks with a market cap of at least $10 billion.
Before trading started on Monday, Newsmax had a market cap of $1.2 billion.
“We’re going out with a market cap of $1.2 [billion]. But we don’t see ourselves as a value stock. We see ourselves as a growth stock. So those multiples are going to be a lot higher,” Newsmax founder and CEO Christopher Ruddy told CNBC on Monday morning.
Newsmax would not qualify for the S&P 500 however, as it does not have positive earnings.
Trading was so fast and furious, it had to be halted multiple times on Monday and Tuesday as things got overheated and had to be paused.
Reminiscent of GameStop
The meteoric rise is reminiscent of the meme stock surge by GameStop (NYSE:GME) and AMC (NYSE:AMC) in 2021. As mentioned, the company reported a net loss last year.
Just last week, AI stock, CoreWeave (NASDAQ:CRWV) launched its much-anticipated IPO at $40 per share. It has jumped about 22% over the past two trading days to $49 per share, but certainly nothing like Newsmax.
With a phenomenon like Newsmax, investors have to be very cautious because of the extreme volatility. The ride has been wild, but without a catalyst or earnings to back up that kind of growth, it will eventually come back down and find its level. In addition, investors will probably start taking profits.
VALUEWALK LLC is not a registered or licensed investment advisor in any jurisdiction. Nothing on this website or related properties should be considered personalized investments advice. Any investments recommended here in should be made only after consulting with your personal investment advisor and only after performing your own research and due diligence, including reviewing the prospectus or financial statements of the issuer of any security. VALUEWALK LLC, its managers, its employees, affiliates and assigns (collectively “The Company”) do not make any guarantee or warranty about the advice provided on this website or what is otherwise advertised above. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. The Company disclaims any liability in the event any information, commentary, analysis, opinions, advice and/or recommendations provided herein prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.
Recommended content
Editors’ Picks
EUR/USD accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.