Newsmax, the conservative cable news network, made a remarkable debut on the New York Stock Exchange on March 31, 2025, with its stock soaring more than 500% amidst a wave of retail investor enthusiasm. Trading under the symbol "NMAX," the stock opened at $14 after being priced at $10 per share, quickly capturing the attention of traders and analysts alike.
The initial public offering (IPO) raised $75 million through the sale of 7.5 million Class B shares, marking a rare instance of a television network going public in the United States. In fact, according to Dealogic data, no comparable cable news IPO has occurred in decades. This move comes at a time when traditional cable television faces significant challenges from streaming platforms, yet live news and sports continue to attract sizable audiences.
Christopher Ruddy, the founder and CEO of Newsmax, described the IPO as a strategic maneuver to position the network as a competitor to Fox News. "I think there was a demand for more competition against Fox," Ruddy stated during an appearance on CNBC’s "Squawk Box". He emphasized that while Fox dominates the right-wing media landscape, Newsmax has carved out its own niche as the fourth-largest cable news network, trailing only CNN, MSNBC, and Fox News.
Newsmax's audience has grown significantly in recent years, fueled by the rise of Donald Trump and other right-wing politicians. The network's ratings have consistently placed it fourth in cable news viewership, with Nielsen reporting that it ranks among the top 20 cable networks in both prime-time and daytime ratings. However, this growth has not come without challenges; the network reported a loss of over $55 million in the first half of 2024 against revenues of $80 million, and it carries significant liabilities.
Despite the initial surge in stock price, analysts have raised concerns about the long-term viability of Newsmax’s business model. Traditional cable news networks have struggled with declining subscriptions as more viewers migrate to streaming services. In fact, a recent report indicated that streaming accounted for a record-breaking 41.4% of all TV usage in the U.S., while cable lagged behind at 26.7%.
Ruddy acknowledged the changing landscape, stating, "I think [legacy media] is dying. Even though we’re on a legacy platform with cable, we also have an incredible streaming channel and we’re doing amazing things on podcasts now." He expressed confidence that Newsmax could thrive by leveraging live news and sports, which continue to attract audiences and advertising dollars.
The excitement surrounding Newsmax’s stock was palpable on its first day of trading, with shares experiencing volatility that led to trading halts multiple times within the first hour. By midday, the stock had surged to $63.20, marking an increase of 532% from its IPO price. Such dramatic price movements have drawn comparisons to previous speculative frenzies associated with meme stocks like GameStop.
Retail investors played a significant role in driving up the stock price, with many taking to social media platforms to express their enthusiasm. One Reddit user even remarked that Newsmax shares were being "sent to the moon," echoing sentiments from the 2021 GameStop rally. However, institutional investors have remained cautious, particularly given the network's financial struggles.
In addition to its cable offerings, Newsmax operates a free streaming channel, Newsmax2, and a subscription service called Newsmax+, which costs $4.99 per month. The network, founded in 1998 as a digital news outlet, transitioned to a cable channel in 2014 and has since expanded its revenue model to include licensing fees from major pay-TV providers.
As Newsmax celebrated its IPO, it also faced scrutiny over its political leanings, particularly following a $40 million settlement with Smartmatic over false claims regarding the 2020 election. Ruddy sought to downplay these concerns, stating, "We believe we’re conservative with an independent news mission and ask tough questions of the Trump administration." This comment highlights the delicate balance Newsmax must maintain as it navigates its identity in a polarized media landscape.
Following the IPO, Ruddy revealed that he had a personal conversation with Trump, discussing the company's future and the recent market debut. He shared on social media that he told Trump, "A rising Trump lifts all boats!" This phrase encapsulates the intertwined nature of Newsmax's fortunes with those of the former president, suggesting that as Trump’s influence grows, so too might the network's prospects.
As the dust settles from Newsmax's explosive entry into the public markets, the road ahead remains uncertain. While the initial excitement may have propelled the stock to dizzying heights, analysts warn that the long-term sustainability of the network's business model could face significant challenges. The landscape of cable news is shifting rapidly, and only time will tell if Newsmax can maintain its momentum amid the pressures of a changing media environment.
In summary, Newsmax's IPO marks a significant moment in the evolution of cable news, reflecting both the demand for alternative media voices and the volatile nature of the stock market. As the network seeks to establish itself as a formidable player in the conservative media space, it will need to navigate the complexities of audience engagement, financial health, and political accountability.
