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Trump-loving network Newsmax is a hot stock on Wall Street

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Conservative cable news channel Newsmax is getting a Trump bump on Wall Street.

On the first day of its Initial Public Offering, the Boca Raton, Florida-based company saw a significant jump in its stock price. Shares initially priced at $10 were trading at $233 per share by Tuesday afternoon, resulting in a market capitalization of more than $20 billion for the company.

Newsmax itself tracked the stock’s movement onscreen throughout the day.

It’s unexpected that Newsmax is performing well, given it primarily focuses on cable services and earns minimal income from pay-TV providers as reported by analysts. However, Chris Ruddy, the company’s founder and CEO, mentioned in an interview with CNBC on Monday that they are receiving carriage fees.

Newsmax primarily relies on direct-to-consumer marketers rather than traditional blue chip advertisers, with a significant number of these marketers offering merchandise related to Donald Trump. Many of the ads broadcast on Newsmax feature conservative television figures acting as spokespersons.

The Initial Public Offering (IPO) occurs during a period when the conventional cable industry is dwindling, as people are opting out of pay TV subscriptions. Prior to this offering, a 10-K filing highlighted potential risks, stating that ” shifts in consumer habits, advancements in technology, and alterations in distribution platforms might negatively impact the company’s operations, financial status, and earnings.

The business provides the digital service, Newsmax+, that allows consumers to watch the network’s content streaming at a monthly cost of $4.99.

It appears that the initial success of the stock might be influenced heavily by President Trump’s ardent followers. These individuals seem to find favorable coverage from Newsmax commentators, who consistently present a supportive narrative for the White House during their broadcasts. Newsmax has been actively promoting this Initial Public Offering (IPO) in their programming.

As a moviegoer peering into the ever-changing landscape of Wall Street, I’ve noticed striking parallels with Trump Media Technology Group – the president’s brainchild social media platform that houses Truth Social. After soaring as high as $100 mere months following its Initial Public Offering (IPO) in 2022, it took a steep nosedive. However, during his presidential campaign in 2024, the stock experienced another uptick before settling around the $20 mark currently.

In 2020 and the beginning of 2021, Newsmax experienced a spike in ratings that reached record levels. This was because it drew in conservative viewers who were disappointed by Donald Trump’s defeat to Joe Biden in the 2020 Presidential Election.

Hollywood Inc.

In his fresh agreement, the data analyst who prefers khaki outfits now has the freedom to work on tasks across various networks and digital platforms, provided they steer clear of political or sport-focused themes.

I found myself sharing a sense of frustration with many fellow Trump supporters when Fox News accurately predicted that Arizona would go to Biden, long before other networks followed suit. It was refreshingly surprising to witness such foresight from them, but it left me pondering the hesitance displayed by Newsmax, as they delayed calling Biden the president-elect for several weeks thereafter.

After experiencing a setback, Fox News has now regained its strength and maintains an impressive 70% viewership in cable news – its highest dominance yet, as reported by Nielsen.

Last year, Newsmax experienced an increase in its viewership and proudly claims its status as the fourth-most popular cable news network following Fox News, MSNBC, and CNN. As per Nielsen’s data from the first quarter of 2025, Newsmax averaged approximately 305,000 viewers during prime time hours, placing it 18th among all cable networks in total viewership.

2024 saw a significant financial loss of $72 million for the network, contrary to the rise in its revenue. Previously, Newsmax made a payment of $40 million to the voting software company Smartmatic as part of a settlement for a defamation lawsuit. Additionally, Smartmatic was granted an opportunity to acquire shares within the company.

In simpler terms, Smartmatic is claiming that Newsmax allowed Trump, along with his lawyers and supporters, to make false allegations on their platform that Smartmatic’s software had been tampered with, leading to the election being won by Biden.

news outlet Newsmax, much like Fox News before it, is involved in a $1.6 billion lawsuit from Dominion Voting Systems, following their allegations of spreading misinformation regarding Dominion’s voting machines. In 2023, Fox News had to settle with Dominion for $787.5 million, after being sued over the network’s dissemination of former President Trump’s unfounded claims about the voting system.

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2025-04-02 00:31

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