Newsmax Stock Has Soared 2,000% in Its First 2 Days of Trading

Newsmax (NMAX) stock surged again on Tuesday after skyrocketing Monday, its first day of trading. 

Shares of the conservative news channel more than doubled to around $210 in intraday trading on Tuesday, putting the stock, which debuted on the New York Stock Exchange on Monday morning, 2,000% above its $10 IPO price. 

Shares soared 735% from the IPO pricing Monday, the best first-day performance of any U.S. stock listing since an obscure Chinese garment manufacturer, Addentax Group (ATXG), debuted at $5 a share in August 2022 and skyrocketed 13,000% on its first day, according to Bloomberg. Addentax’s success in the U.S. market was short-lived—shares tumbled 95% in their second day of trading, and on Tuesday were trading for about 88 cents.

Tuesday’s intraday price valued Newsmax at more than $27 billion, which would make it larger than nearly two-fifths of the S&P 500. It is, however, ineligible to enter the benchmark index, which requires companies to be profitable. Newsmax in 2024 booked a net loss of $72 million on $171 million in revenue.

Newsmax Debut Success Counters Recent IPO Trends

Newsmax’s blockbuster debut flies in the face of recent IPO trends, which have mostly disappointed Wall Street. Nvidia-backed cloud computing company CoreWeave (CRWV) last week finished its first trading day at $40—its exact IPO price, which was itself below expectations. The stock then slumped in its second session Monday. 

Investors were hoping for an IPO renaissance this quarter after several years of sluggish activity. Recent market turbulence, however, has complicated the IPO outlook—weighing on recent debuts like CoreWeave and liquefied natural gas producer Venture Global (VG).

Nonetheless, some companies are planning to brave the turmoil, including buy now, pay later giant Klarna, ticket reseller StubHub, and online trading platform eToro, all of which filed IPO paperwork last month.