Newsmax Stock Plummets 49% Following Post-IPO Surge

Newsmax Inc. (NMAX) experienced a dramatic decline in its stock price, plummeting 49% to $123.99 in early trading Wednesday after a staggering rise that saw shares soar from $10 to $233 following its IPO. The conservative media company, founded in 1998 and led by CEO Christopher Ruddy, raised $75 million in its IPO and previously $225 million in a private offering, reflecting its rapid ascent in the cable news landscape. Despite the surge, Newsmax remains unprofitable, with losses increasing significantly as it faces a lawsuit from Dominion Voting Systems. The stock's volatility has drawn comparisons to past meme-stock phenomena, highlighting investor caution amidst its meteoric rise. Analysts note that the company's market cap had briefly surged to over $20 billion before the sharp correction. The fluctuations indicate a market grappling with the sustainability of such rapid growth, particularly in light of Newsmax's financial challenges.