Newsmax Stock Surges 160%: Is This the Next GameStop?

Ladies and gentlemen, buckle up! We're in the midst of a stock market phenomenon that's got everyone talking. Newsmax, the conservative cable news outlet, has seen its stock price surge another 160% today, following a dizzying 2,230% rise in its first two days of trading. This is bigger than GameStop, folks! This is the next big thing in the meme stock world, and you need to pay attention!

First, let's talk about the numbers. Newsmax's stock, trading under the ticker NMAX, opened at $10 on Monday and closed at nearly $78. After hours, the values continued to rise, and when trading opened on Tuesday, the stock saw another surge. As of roughly 2 p.m. ET, shares were trading at around $215, an increase of almost 160%. This is a staggering 2,230% increase in just two days! The trading has been so intense that it was even halted numerous times on Monday due to volatility. This is the kind of action that gets retail investors excited, and it's no surprise that comparisons to the GameStop meme stock mania are being drawn.

But what's driving this surge? There are a few key factors at play here. First and foremost, Newsmax is a conservative cable news outlet that has gained traction during President Donald Trump's second term. The company's founder, Christopher Ruddy, is a friend of Trump, and the network has been known for its sympathetic coverage of the former president. This political alignment has likely contributed to the stock's surge, as investors see potential in the "Trump trade."

Second, Newsmax's IPO had a limited float, which can exacerbate price volatility. The company raised $75 million in its IPO, with shares priced at $10, and had previously raised $225 million in a private offering. The limited supply of shares available for trading can drive up the price as demand increases.

Third, Newsmax's market cap at its peak was higher than those of established media companies like News Corp (parent of Wall Street Journal) and AI server maker Super Micro Computer. This comparison has likely contributed to the hype and increased demand for Newsmax's stock.

But here's the thing, folks: this is a volatile stock. The market is a fickle beast, and it can turn on a dime. Newsmax's stock price has already plummeted by over 77% on Wednesday, April 2, 2025, reducing its market cap from roughly $21 billion to $4.7 billion. This is a stark reminder that the market can be unpredictable, and that even the hottest stocks can cool off quickly.

So, what should you do? Should you buy Newsmax stock? Should you sell? Should you hold? The answer, as always, is that it depends. If you're a risk-tolerant investor who's willing to ride the roller coaster of volatility, then Newsmax could be a good play. But if you're looking for a stable, long-term investment, then you might want to steer clear.



In conclusion, Newsmax's stock surge is a fascinating phenomenon that's got everyone talking. It's a reminder that the market can be unpredictable, and that even the hottest stocks can cool off quickly. But it's also a reminder that there are opportunities out there for those who are willing to take risks. So, do your research, stay informed, and make the right call for your portfolio. And remember, folks: this is a no-brainer!