On April 1, 2025, the stock market experienced notable fluctuations, particularly with the rise of conservative media outlet Newsmax, which became a meme stock phenomenon. Shares surged dramatically, reflecting a mix of market dynamics and investor enthusiasm.
Newsmax Inc. made headlines with an astonishing 1,160% increase since its debut as a public company on March 31, 2025. On its first trading day, the stock saw a remarkable 735% jump, leading to multiple trading halts. By Tuesday, April 1, shares opened up another 51% at $125.98, pushing the company's market value to over $16 billion. This meteoric rise has captured the attention of retail investors, making Newsmax the top trending ticker on social media platforms like Stocktwits.
Founded in 1998 by Christopher Ruddy, Newsmax began as a digital brand and launched its cable news channel in 2014. The timing of its IPO coincides with a significant political landscape, particularly following Donald Trump's return to the White House earlier this year. As Peter Andersen, founder of Andersen Capital Management, noted, "It's probably a perfect time for Newsmax to launch, simply because of all the volatility in the political arena currently." This sentiment reflects a broader trend where conservative media outlets have gained traction among investors, especially in light of recent political events.
While Newsmax soared, other stocks in the market exhibited mixed results. Johnson & Johnson (NYSE:JNJ) faced a setback, losing a bid to use bankruptcy for talc claims, resulting in a 4.7% drop. Eli Lilly And Co (NYSE:LLY) followed closely behind with a decrease of 2.05%. Merck & Co (NYSE:MRK) announced it would hold its First-Quarter 2025 Sales and Earnings Conference Call on April 24, 2025, leading to a 1.83% decline in its stock.
In the large-cap category, Newsmax's extraordinary performance overshadowed other notable movements. Corcept Therapeutics (NASDAQ:CORT) saw a significant drop of 14.91%, while CoreWeave (CRWV) managed to increase by 7.61%. Delta Air Lines New (NYSE:DAL) also faced challenges, with a 5.18% decrease, as did United Continental (UAL), which fell by 4.71%.
In the mid-cap sector, Pvh (NYSE:PVH) stood out with a 16.97% increase, while Progress Software (NASDAQ:PRGS) beat Q1 estimates and raised its outlook, resulting in an 8.25% surge. Conversely, Pony Ai Inc (PONY) experienced a decline of 9.58%, and Axsome Therapeutics Inc (NASDAQ:AXSM) saw a drop of 7.98% despite showing promise in MDD with EDS subgroup.
As for small-cap stocks, Nebula Acquisition (LPRO) faced a steep decline of 40.04% after its Q4 results missed estimates. In contrast, Lixiang Education Holding (LXEH) saw a remarkable increase of 65.62%, and Tuscan Holdings Corp (MVST) reported positive 2024 financial results, climbing by 18.8%. Phathom Pharmaceuticals Inc (PHAT) appointed a new CEO but faced a 15.95% drop in its stock.
The trading session on April 1, 2025, illustrated the volatility of the market, driven in part by the surge in meme stocks like Newsmax. The significant movements in both directions among mega-caps and smaller stocks highlight the unpredictable nature of today’s trading environment. Investors are closely monitoring these changes, as they reflect broader economic trends and sentiments.
In a separate development on the same day, the European Commission issued a fine of approximately 458 million euros ($494.64 million) to 15 major car manufacturers and the European Automobiles Manufacturers' Association for participating in a cartel related to end-of-life vehicle recycling. This action underscores ongoing regulatory scrutiny in various industries, further influencing market dynamics.
As the market continues to evolve, the implications of these stock movements will likely resonate with investors and analysts alike. With the rise of conservative media stocks and the ongoing regulatory challenges faced by established corporations, the landscape remains as dynamic as ever.
