Is Newsmax Stock a Buy?
Newsmax (NYSE: NMAX), the conservative media company that competes against mainstream media outlets like (NASDAQ: FOX) News, went public at $10 this March. Its stock skyrocketed and closed at $83.51 on its first day, and it set a record high of $233 a day later.
At its peak, Newsmax's market cap hit $29 billion, or 170 times the $171 million in revenue it generated in 2024. It instantly became a meme stock for two reasons: it was closely associated with President Donald Trump, who frequently touted Newsmax as an alternative to Fox News, and it tightened its supply by only offering 6% of its outstanding shares in its IPO. Hopes for lower interest rates further amplified those gains by driving more investors toward speculative stocks.
But today, Newsmax trades at about $10. Shares took a round trip back to its IPO price as it grappled with steep losses, costly legal battles, and competitive headwinds. Should investors still buy this unloved stock as a contrarian investment, or should they stay far away?
Source Fool.com
