Newsmax Stock Soars 2,550% and Plunges 24% in Volatile Post-IPO Trading Frenzy

Newsmax Stock Experiences Meme-Like Volatility Following IPO

Newsmax, the conservative media outlet, has seen its stock price undergo dramatic fluctuations reminiscent of meme stock trends following its recent initial public offering (IPO). After an initial surge of 2,550%, the stock plummeted 24%, showcasing the extreme volatility that has become characteristic of stocks driven by retail investor enthusiasm.

On Tuesday, Newsmax shares reached an intraday high of $265 before settling at $179 by Wednesday’s trading session. This rollercoaster ride began with the IPO priced at $10 per share, which opened at nearly $15, marking a 50% gain right out of the gate.

The trading pattern observed in Newsmax shares bears a striking resemblance to that of Trump Media and Technology Group, another media company that experienced a tumultuous market debut. Both entities currently operate at a loss, with Newsmax reporting a substantial $72.2 million deficit in 2024.

Market analysts attribute the extreme price movements to a combination of factors, including intense retail investor interest and a limited number of shares available for trading. This scenario has created a perfect storm for rapid price escalation post-IPO.

Paul Hickey of Bespoke Investment Group commented on the situation, stating, “The stock’s small float makes it susceptible to large price swings.” This sentiment is echoed by other market experts, including Steve Sosnick, who expressed bewilderment at the stock’s trading activity, underscoring the unpredictable nature of its market behavior.

As Newsmax continues to navigate its early days as a publicly traded company, investors and market watchers alike remain on high alert, anticipating further volatility in this latest addition to the meme stock phenomenon.