New York, New York – Newsmax, a conservative TV company, has experienced a remarkable surge in its stock market valuation, with its shares increasing by over 2,200% since its debut on Monday. Originally priced at $10 each, Newsmax’s shares closed at $233 at the end of Tuesday’s trading session, giving the company a market value of nearly $30 billion. This surpasses media giants such as Fox Corp, Warner Bros Discovery, and Paramount Global.
Founded in 1998 as an online platform, Newsmax expanded to launch its cable news channel in 2014. The company’s ratings received a boost in 2020 when it gained endorsement from former U.S. President Donald Trump, who publicly praised Newsmax over his dissatisfaction with Fox News. Despite their close relationship, Newsmax’s founder and CEO Christopher Ruddy emphasized that the network was not intended to be “Trump TV.”
Analysts attribute the surge in Newsmax’s stock price to retail investors, drawing comparisons to the GameStop frenzy that occurred during the pandemic. This retail investor-driven trend, which includes the rise of meme stocks, represents a broader shift in trading practices among individuals not affiliated with traditional investment firms.
The exponential growth in Newsmax’s valuation has propelled Ruddy’s net worth to over $9 billion, solidifying his position as one of the wealthiest individuals in the U.S. This financial milestone comes amidst Newsmax’s recent $40 million settlement to address allegations of defamation related to the 2020 election coverage, specifically concerning voting machine company Smartmatic.
Joining the ranks of other conservative-affiliated companies going public, such as Canada-based video platform Rumble Inc and Trump Media & Technology Group, Newsmax’s success in the stock market reflects the increasing influence of right-leaning media organizations. Despite facing challenges and controversies, Newsmax continues to carve out its place in the competitive media landscape, reshaping traditional narratives and captivating audiences with its unique brand of conservative news coverage.