The Newsmax shareholders who purchased $10 shares last year based on the channel’s request now own shares worth more than $130 each.
The pro-Trump news outlet achieved a massive success with its IPO during this week despite being an underdog in the field dominated by Fox News.
CEO Chris Ruddy became a paper billionaire after the stock price skyrocketed when he declared to CNN that “investors have spoken loud and clear by buying Newsmax stock because they like us and value us and want us to thrive.”
The new capital injection positions Newsmax for expansion. The media industry observers have started calling Newsmax a “meme stock” because of the extreme market interest.
Investors should consider slowing down their investments. The cable news industry shows little growth potential while Newsmax financial statements demonstrate poor health and the company faces a significant legal challenge.
The channel initiated its IPO process because of defamation lawsuits that emerged from the 2020 election.
