Newsmax stock plummets nearly 80% after wild post-IPO rally pushed company value north of $20 billion [View all]

Source: Yahoo! Finance

Yahoo Finance
Newsmax stock plummets nearly 80% after wild post-IPO rally pushed company value north of $20 billion

Laura Bratton
Updated Wed, April 2, 2025 at 4:05 PM EDT 2 min read

Newsmax (NMAX) stock dropped just over 77% Wednesday, forfeiting a large chunk of its massive post-IPO surge that saw shares soar from $14 to $233. ... The stock's spiral sent Newsmax's market cap down to $4.7 billion, just a fraction of its roughly $21 billion value at Tuesday's close. Shares ended Wednesday's trading session at $52.71.

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The stock began trading at $14 Monday before surging a staggering 735%. Shares rose another 180% Tuesday, rocketing Newsmax's market cap from $1.2 billion upon its market debut to $20.8 billion. The stock's performance showed the Trump trade still has room to run in some cases, just as the president's tariff policies slam the market at large.

Newsmax's market cap at Tuesday's close was higher than those of Wall Street Journal parent News Corp (NWSA) and AI server maker Super Micro Computer (SMCI).

Newsmax is unprofitable. While the company’s revenue jumped more than 26% to $171 million in 2024 from the prior year’s $135 million, its loss increased nearly 73% to $72 million from the prior year’s loss, according to Newsmax’s 10-K SEC filing. The company also said in its filing that it has identified "material weaknesses" in its financial reporting controls such that there may be "a material misstatement" in its financial statements that it may not detect "on a timely basis."

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