The stock of U.S. conservative media company Newsmax (NMAX) has risen an astonishing 735% in the first two trading days since its initial public offering (IPO).
Newsmax raised $75 million U.S. in its IPO held on March 28, with shares priced at $10 U.S. each. The stock ended trading on April 1 at $233 U.S. per share.
The stock’s blistering rally right out of the gate has pushed its market capitalization to $20.80 billion U.S.
Founded in 1998, Newsmax is run by chief executive officer (CEO) Christopher Ruddy, who is a friend of U.S. President Donald Trump.
Newsmax became a cable TV network in 2014 and has faced an onslaught of lawsuits over the last decade for touting unfounded conspiracy theories.
The company is embroiled in an ongoing lawsuit from Dominion Voting Systems seeking $1.60 billion U.S. in damages over false claims it made in its coverage of the 2020 presidential election.
Newsmax settled another lawsuit with a separate election technology company, Smartmatic, in 2024 for $40 million U.S. over false claims of election improprieties.
Newsmax, which many pundits see as a Fox News alternative, has also drawn criticism over conspiracy theories it has pushed about the January 6, 2021, attack on the U.S. Capitol.
Despite the controversies, Newsmax’s stock is being embraced by mostly retail investors who support President Trump, pushing the share price sharply higher.
However, at least one prominent investor, has made a fortune on the post-IPO rally.
Thomas Peterffy, founder and current chairman of online brokerage Interactive Brokers (IBKR) owns 23,045,352 shares of Newsmax stock, a stake that’s now worth $6.2 billion U.S.
Peterffy is the second largest shareholder of Newsmax.
Florida-based Newsmax’s revenue rose 26% to $171 million U.S. in 2024. However, the company reported a -$72 million U.S. loss last year.
