Is Newsmax the Next MAGA Stock? The Hottest New Trade!

Ladies and gentlemen, buckle up! We are in the midst of a trading frenzy that could rival the GameStop craze of 2021. Newsmax, the conservative cable news network, has just gone public and its stock has skyrocketed over 500% in its first day of trading. This is not just a blip on the radar; this is a full-blown speculative frenzy, and you need to pay attention!



Newsmax's IPO was priced at $10 per share, but by midday on its first trading day, the stock had soared to over $60 per share. This is a 500% increase in just a few hours! The market is on fire, and Newsmax is the hottest new MAGA trade. Retail investors are flocking to this stock, comparing it to the meme stocks of the past. One Reddit user even commented that Newsmax shares were being “sent to the moon,” a reference to the speculative trading craze that drove up struggling stocks like GameStop and AMC Entertainment.

But why is Newsmax surging like this? Well, for starters, the network has seen a significant increase in viewership in recent years, fueled by the rise of Donald Trump and other right-wing politicians. Newsmax has positioned itself as a competitor to Fox News, and its audience has grown to become the fourth-largest cable news network behind CNN, MSNBC, and Fox News. Nielsen ratings confirm that Newsmax consistently ranks fourth in cable news viewership, and overall, it is among the top 20 cable networks in both prime-time and daytime ratings.

But here's the thing: Newsmax's business model faces challenges. Traditional cable news networks have struggled with declining subscriptions as more viewers turn to streaming. Fox News, CNN, and MSNBC have diversified their offerings, while Newsmax remains heavily reliant on cable distribution. The company’s pro-Trump reputation has also drawn scrutiny. Last year, Newsmax reached a $40 million settlement with Smartmatic over false claims that the voting machine company rigged the 2020 election. However, Ruddy sought to downplay Newsmax’s political leanings during the IPO launch. “We believe we’re conservative with an independent news mission and ask tough questions of the Trump administration,” he said.

Despite these challenges, the initial stock frenzy and retail investor interest suggest that Newsmax could be the next DJT stock. The network reported a loss of more than $55 million in the first half of 2024 on a revenue of $80 million, according to regulatory filings. It also listed $142 million in total liabilities against $69 million in assets. The surge in Newsmax’s stock price mirrors past IPO booms that saw early sky-high valuations collapse over time. Analysts noted that two dozen companies that posted similar 300%-plus gains on debut have since fallen by an average of 85% from their IPO prices.

So, what do you do? Do you jump on the bandwagon and buy Newsmax stock, or do you stay away and wait for the dust to settle? The choice is yours, but one thing is for sure: this is a trade that you cannot ignore. The market is on fire, and Newsmax is the hottest new MAGA trade. So, buckle up and get ready for the ride of your life!