Stock-Split Watch: Is Newsmax (NMAX) Next?

Core Viewpoint - Newsmax has experienced significant volatility since its IPO, with shares initially priced at $10 soaring to $265 before falling to around $14, indicating a turbulent market response [1]. Stock Performance - Newsmax's stock price peaked at $265 shortly after its IPO on March 31, 2025, but has since declined to approximately $14 as of July 21, 2025 [1]. - The company reported $171 million in revenue for the previous year, with a market capitalization of $1.9 billion, resulting in a price-to-sales (P/S) ratio of about 11, significantly higher than its competitor Fox, which trades at 1.5 times last year's sales [11]. Stock Split Considerations - A forward stock split is generally seen as a positive sign, indicating a high share price, but given the current decline in Newsmax's stock price, a forward split is unlikely [5][8]. - A reverse stock split could be a possibility if the stock price continues to fall, although it is not currently at risk of being delisted from the New York Stock Exchange [9][10]. Audience and Growth - Newsmax's audience grew by 50% year over year in Q1 2025, reaching 33.6 million viewers, supported by distribution deals with platforms like YouTube TV and Hulu+ Live TV [12]. - The company has a politically conservative stance, which has helped cultivate a loyal viewer base, although it has faced legal challenges related to defamation lawsuits from voting systems suppliers [12][13]. Financial Challenges - Despite a 26% year-over-year revenue increase in 2024, Newsmax reported a loss of $72 million, which is 73% worse than its losses in 2023 [11]. - The ongoing legal issues, particularly the lawsuit from Dominion, pose a risk to the company's financial stability and could lead to further losses [13].