Core Insights - Newsmax's stock experienced a dramatic rise of over 700% upon going public, reaching an intraday peak of $265 per share, driven by perceived connections to President Donald Trump, but this enthusiasm has since diminished [1][5] - The company operates a 24/7 news channel and other media properties, targeting a politically conservative audience and historically providing favorable coverage of Trump [2] - Recent Nielsen ratings indicate that Newsmax is the fourth-most popular cable news outlet in the U.S., with a record 33.6 million viewers in Q1, reflecting a 50% year-over-year increase, particularly among the 35- to 64-year-old demographic, which grew by 63% [4] Financial Performance - As of the latest update, Newsmax's stock trades below $13 per share, still above its $10 IPO price but below its initial trading day price of $14, with a market cap of $1.63 billion [5] - For the first half of 2025, Newsmax reported total revenue of $91.7 million, marking a 15% year-over-year increase, but the net loss increased significantly from approximately $55.5 million to over $92 million [5][6] - High litigation costs related to coverage of the 2020 election have impacted financial results, leading to several defamation lawsuits and costly settlements, which if absent, would have improved bottom-line results [6] Valuation and Market Position - Despite significant audience growth, Newsmax's stock trades at nearly 9 times annualized sales, which is considered expensive relative to its recent growth, suggesting potential price correction risks in the next year [7]
Where Will Newsmax Stock Be in 1 Year?
The Motley Foolยท2025-09-30 01:21