From Zero to Billion: Newsmax's Explosive Stock Surge Captivates Investors

Newsmax, a conservative TV company, has experienced a staggering 2,200% surge in its stock market valuation since its New York debut. Originally priced at $10 (£7.75) per share, the stock skyrocketed to $233 by the close of Tuesday’s trading, pushing the company’s market value to nearly $30 billion. This remarkable leap has positioned Newsmax above media giants like Fox Corp, Warner Bros Discovery, and Paramount Global.

The surge in shares is largely attributed to retail investors, leading to comparisons with the GameStop phenomenon, where stocks gained popularity driven by public enthusiasm rather than traditional market fundamentals. Newsmax’s founder, Christopher Ruddy, has become one of the wealthiest individuals in the US, with a net worth exceeding $9 billion according to the Bloomberg Billionaires Index.

Founded in 1998 and initially starting as an online platform, Newsmax launched its cable news channel in 2014. The channel’s ratings soared significantly after receiving an endorsement from Donald Trump in 2020, particularly as tensions grew between Trump and Fox News. Despite the close ties to Trump, Ruddy has been adamant about not wanting Newsmax to be labeled as ”Trump TV”.

Additionally, just earlier this month, Newsmax settled a $40 million lawsuit over allegations of defamation against Smartmatic, related to misleading claims involving the 2020 Presidential election results. Newsmax joins a list of conservative-aligned companies venturing into the stock market, including Rumble Inc and Trump’s own media venture, Trump Media & Technology Group.