Newsmax Stock Soars 13.54% on $1.2B SEPA Deal, Viewership Surge

Newsmax's stock surged by 13.54% in pre-market trading on April 8, 2025, marking a significant rise in its share price. This dramatic increase comes as the company continues to navigate the evolving media landscape and capitalize on its connections to former President Donald Trump.

Newsmax's recent surge in stock price can be attributed to several key factors. The company announced a significant $1.2 billion standby equity purchase agreement (SEPA) with Yorkville Advisors, which allows Newsmax to sell up to $1.2 billion of class B shares over a 24-month period. This agreement is expected to bolster the company’s balance sheet and improve share liquidity, providing flexibility as Newsmax continues to grow.

Additionally, Newsmax has seen a 50% increase in first-quarter 2025 viewership, which has contributed to the rise in its stock price. The company's notable connections to former President Donald Trump and its status as a conservative media outlet have also played a role in its recent success. However, it is important to note that Newsmax is still trading like a meme stock and has a high valuation, which may be a cause for concern for some investors.

Despite the significant price movement, there are no medium or severe warning signs according to its stock metrics, which can be a positive indicator for investors. However, the company's Price-to-Earnings (P/E) ratio stands at an incredibly high 9,999, indicating a possible overvaluation at the current price points. Investors should consider these factors along with the broader market context when assessing the stock’s future potential.