Newsmax (NMAX 1.95%) stormed onto the public markets earlier this year, with its stock soaring more than 700% out of the gate. In subsequent sessions, it surged to an intraday peak of $265 a share. Investors believed there was some kind of connection between the media company and President Donald Trump, and that resulted in it trading like a meme stock.
Newsmax runs a 24/7 news channel as well as other media properties, including radio shows, podcasts, and websites. The brand caters to a politically conservative crowd and has historically provided favorable coverage of Trump.
Image source: Getty Images.
Recent Nielsen ratings show that Newsmax is the fourth-most popular cable news outlet in the U.S. In the first quarter of the year, Newsmax reported a record 33.6 million viewers, up 50% year over year. Meanwhile, 15 million of those viewers came from the key 35- to 64-year-old demographic, which was up 63% year over year.
Where will Newsmax stock be in 1 year?
Most of the meme-stock magic has worn off, as Newsmax's stock trades below $13 per share as of this writing -- still above its $10 a share IPO price, though below the $14 a share at which it opened on its first trading day -- and a $1.63 billion market cap. Through the first half of 2025, Newsmax generated $91.7 million in total revenue, up about 15% year over year. The company's net loss, however, increased from a roughly $55.5 million loss to more than $92 million.
NYSE: NMAX
Key Data Points
Newsmax has been dealing with high litigation costs related to its coverage of the 2020 election, which led to several defamation lawsuits and expensive settlements. Absent those costs, bottom-line results would have been much better.
While Newsmax's audience growth has been tremendous, when you annualize its revenues this year, the stock still trades at almost 9 times sales. That seems a tad expensive. At that valuation, its recent growth is not enough to tempt me away from other opportunities in the market. Newsmax might stumble over a price correction in the next year.
