Core Viewpoint - Newsmax stock has experienced significant declines, dropping approximately 95% from its all-time high, with continued sell-offs despite a generally positive market environment [1][4]. Group 1: Stock Performance - In July, Newsmax stock fell by 12.2%, while the S&P 500 and Nasdaq Composite rose by 2.2% and 3.7%, respectively [1]. - The stock continued to decline in August, with a further drop of 13.9% [6]. - Following its IPO, Newsmax saw an extraordinary rise of about 2,200% in its first two days, reaching a peak of $265 per share [3]. Group 2: Market Context - The broader market experienced volatility due to macroeconomic and geopolitical news, yet major indexes ended the month positively [2]. - Despite the absence of significant bearish catalysts for Newsmax, the stock faced substantial sell-offs in July [5]. Group 3: Valuation and Trading Dynamics - Newsmax's post-IPO gains were largely driven by meme stock trading rather than business fundamentals or growth prospects [4]. - The company's market capitalization has now fallen to approximately $1.5 billion, with a valuation of about 8.2 times this year's expected sales [7]. - The lack of profitability and other factors contribute to the stock being considered a risky investment [7].
Why Newsmax Stock Sank 12.2% Last Month and Has Kept Plummeting in August
The Motley Fool·2025-08-12 10:00