Is Newsmax Stock a Buy Now?
Newsmax (NYSE: NMAX), a media company with conservative leanings, was founded in 1998 and has grown rapidly over the past decade with the rise in popularity of Donald Trump. Newsmax's stock went on a wild ride after its initial public offering (IPO) on March 31, 2025. It went public at $10, started trading at $14, and ended its first day at $83.51. That's a stunning 735% one-day gain. The following day, the stock price nearly tripled to a record closing price of $233.
At its peak, Newsmax's market cap reached $29 billion, or nearly 170 times the $171 million in revenue it generated in 2024. That meme stock valuation was unsustainable, and Newsmax's price withered to about $18 a share now and reduced its market cap to $1.6 billion.
Should investors buy this volatile stock after its steep pullback?
Source Fool.com
