How to Invest in Newsmax (NMAX)

That eye-popping post-IPO spike has many investors wondering how they can buy the stock. This guide will show you how to invest in Newsmax stock and everything you need to know about investing in the media company.

How to buy Newsmax stock

As a publicly traded company, anyone can buy shares of Newsmax through a brokerage account or online trading platform. Here's a step-by-step guide on how to add the stock to your portfolio.

• Step 1: Open your brokerage app: Log in to your brokerage account where you handle your investments.
• Step 2: Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
• Step 3: Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
• Step 4: Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
• Step 5: Submit your order: Confirm the details and submit your buy order.
• Step 6: Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Should I invest in Newsmax?

Before logging in to your brokerage account to buy shares, you should first consider whether Newsmax is the right stock for you to buy. Here are some reasons you might want to invest in Newsmax:

• You want to invest in a company that promotes conservative values.
• You believe the stock will continue to gain value as Newsmax grows its revenue and eventually starts making money.
• You're comfortable with buying a stock that could be very volatile.
• You understand the risks of investing in an IPO stock that's not yet profitable, including that you could lose most or all of your investment if it can't turn the corner on profitability.
• You think Newsmax can grow into its valuation, which was almost 100 times its revenue in early 2025.
• You don't need dividend income right now.

Conversely, here are some reasons investing in Newsmax might not be right for you:

• The values Newsmax promotes don't line up with yours.
• You're in or nearing retirement and need investments that produce dividend income.
• You're concerned about Newsmax's financials, including that it's losing a lot of money.
• You don't want to invest in what could be a very volatile stock.
• You're worried that Newsmax stock could fall significantly if it sells additional shares following its IPO to raise more cash to fund its business.

Is Newsmax profitable?

Profit growth tends to be the primary factor that drives a stock's performance over the long term. With that in mind, here's a look at Newsmax's finances.

Newsmax has several revenue streams. In 2024, the company generated $171 million in revenue from the following activities:

• Advertising: $109.2 million, a 2% increase from 2023
• Subscriptions: $26.9 million, up 50% from the prior year
• Affiliate fees: $26.7 million, a more than 1,000% increase from 2023
• Other: $2.3 million, up nearly 125%
• Product sales: $6 million, down by almost 7%

However, after factoring in expenses, the company reported a net loss of $72 million. Despite a 26% rise in revenue, that was almost 73% more than it lost the prior year. Meanwhile, the company's business burned through cash last year. It used $48.7 million in cash to support its operating activities and another $58.4 million for investing activities.

Because its business is consuming cash, Newsmax had to raise capital from investors. While awaiting its IPO, it launched a private offering to sell up to $225 million of convertible preferred stock. The IPO raised another $75 million in cash to help fund Newsmax's operations and growth.

Newsmax won't be able to rely on investors to fund its business in perpetuity. The company will eventually need to reach profitability so that it can use its retained earnings to fund its growth. The longer it takes the company to start making money, the more pressure it could put on the stock price.

Does Newsmax pay a dividend?

No, Newsmax doesn't pay a dividend or anticipate paying one for the foreseeable future. The company isn't profitable and needs to raise capital from investors to fund its operations and growth.

ETFs with exposure to Newsmax

Being an active stock picker and managing a portfolio of stocks isn't for everyone. Those who prefer a more passive investing approach could consider investing in an exchange-traded fund (ETF) to gain exposure to the trends driving Newsmax's growth.

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