MoneyMaker111
3 days ago
💙 NMAX 💙 Bullish Outlook, Future Growth. SEE IT:
Newsmax ($NMAX) Due Diligence
Newsmax, Inc. ($NMAX) has emerged as a standout performer in the media sector, capturing significant attention with its fair, accurate, and truthful reporting of news. Since its initial public offering (IPO) two weeks ago, the stock has demonstrated remarkable movements. The initial 2,900.00% runup in the stock was driven by newfound financial growth, expanding viewership, and confidence in its future potential. Below are key factors fueling Newsmax’s upward trajectory, including its financials, recent developments, and why the stock is poised for continued gains.
Explosive Post-IPO Performance
Newsmax, Inc. made headlines with its IPO on March 31, 2025. The stock quickly became a market darling, surging about 2,900.00% in its first two days of trading, and transacted at $290.00 per share on April 1, 2025. This meteoric rise pushed Newsmax’s market capitalization to $30 billion, surpassing established media giants like Fox Corporation and Warner Bros. Discovery. The stock has since stabilized and remains up approximately 123% from its IPO price.
Financials: Revenue Growth
Newsmax’s financials reveal a company in a growth phase, with significant revenue increases. In 2024, the company reported total revenue of $171 million, marking a 26% year-over-year increase. This growth was driven by a combination of advertising revenue, licensing fees from pay TV distributors, and digital subscriptions through platforms like Newsmax+. The company operates in two primary segments: broadcasting, which includes its 24/7 television news channels Newsmax and Newsmax2, and digital, encompassing online advertising, subscriptions to specialized health and financial newsletters, Newsmax Magazine, and e-commerce ventures such as nutraceuticals and nonfiction books.
Newsmax’s revenue growth and strategic capital raises signal a company positioning itself for future profitability. The IPO proceeds of $75 million, combined with a prior $225 million private placement of preferred stock, provide a financial cushion to support expansion efforts.
Newsmax Will Continue to Consume CNN's and Fox News Channel's Market Share
Rupert Murdoch, now at 94 years old, lost the ability to control future ownership of his family's trust. Five of his kids are considered to be 'far left', with one son considered to be 'center'. Yet, all of his kids will have equal say in the future of Fox News Channel.
Rupert Murdoch's son has called it a 'personal, painful story' regarding his 'family's unraveling'. And just four months ago, Rupert Murdoch has failed in his bid to deny his left-leaning kids the ability to control News Corp and its Fox News Channel.
Provided that the bulk of Fox News Channel's $1 Billion in annual profit is due to its more-independent audience, the bulk of that audience may very well flee to Newsmax when Murdoch passes away.
Rupert Murdoch, who stepped down from his position at Fox Corp and News Corp in 2023, is not only 94 years old, but he has a history of health issues, including a broken back, seizures, pneumonia, atrial fibrillation, and a torn Achilles tendon.
Fox News Channel's $1 Billion in annual profits, due to its more-independent audience, is slated to soon move over to Newsmax
Developments: Strategic Moves and Audience Expansion
Newsmax has made several strategic moves to bolster its market position and fuel growth. On April 4, 2025, the company entered into a standby equity purchase agreement with Yorkville Advisors, allowing it to sell up to $1.2 billion in Class B common stock over a 24-month period. This deal provides Newsmax with significant capital-raising flexibility, similar to how GameStop Corp raised capital while maintaining a high stock price, enabling Newsmax to maintain a strong balance sheet and fund initiatives without immediate pressure to draw the full amount. CEO Christopher Ruddy emphasized that this agreement enhances liquidity and supports long-term growth, a sentiment echoed by investors who see this as a proactive step to navigate the company’s capital-intensive phase.
On the audience front, Newsmax has solidified its position as a media outlet that serves all of America - catering to individuals on both political sides of the spectrum, as well as independents. In Q1 2025, the network achieved a 50% increase in viewership, averaging 309,000 prime-time viewers and 211,000 daytime viewers, according to Nielsen data. This growth propelled Newsmax to the #5 spot among cable networks, quickly making it the fourth most-watched cable news channel behind Fox News, MSNBC, and CNN. Newsmax’s gains highlight its ability to capture market share in the media space.
“These strong surges in audiences rarely happen in cable news,” said NMAX Vice President for Media and Market Research Jason Villar.
”We are clearly bucking the trend of cable news and overall cable viewership as viewers clearly like the product Newsmax is offering,” he added.
Newsmax has also diversified its revenue streams by securing licensing fees from pay TV distributors like DirecTV, Comcast, and Verizon, a shift from its earlier reliance on advertising revenue. The company has expanded its digital presence through Newsmax+, a subscription-based streaming service, and offers podcasts and e-commerce products, aligning with broader media industry trends. These developments position Newsmax to capitalize on the growing appetite for right-wing content while building a more resilient business model.
Last week, Greta Van Susteren - who had major shows on CNN, Fox News, and MSNBC - signed to extend with Newsmax in a multi-year deal. Greta is an internationally recognized journalist known for her ground-breaking reporting, insightful analysis, and integrity.
Relevant-to-Current-Events, Extra Material
Newsmax sports a wide array of extra material, my favorite being "the world at war."
Bullish Momentum and Investor Sentiment
The market’s enthusiasm for Newsmax stock is evident in its trading activity. The stock’s low float—only 7.5 million shares were initially offered—contributed to its volatility, a characteristic often seen in “meme stocks” like TMTG and GameStop Corp. Over 10.9 million shares were exchanged in early trading sessions. Posts on X reflect this excitement, with users noting the stock’s “insane” 29x surge from its IPO price and likening it to a meme stock phenomenon. With a post-surge consolidation, the stock may experience another 'leg up.'
Newsmax’s growth narrative remains compelling. The company’s ability to raise capital, expand its audience, and diversify its offerings has fueled bullish sentiment among investors. CEO Christopher Ruddy has positioned Newsmax as a “growth stock,” emphasizing its potential to achieve higher multiples as it scales.
Future Outlook: Poised for Continued Gains
Looking ahead, Newsmax, Inc. is well-positioned for further stock price appreciation. The company’s revenue growth, strategic capital agreements, and expanding audience provide a solid foundation for future success. The media industry rewards growth over immediate earnings, as seen with other high-valuation companies like TMTG, which trades at a price-to-sales ratio of 807 despite significant losses. Newsmax’s current valuation is supported by its 26% revenue growth and the potential to capture a larger share of the both the left-leaning, independent, and fiscally conservative media market.
The $1.2 billion equity deal with Yorkville Advisors ensures Newsmax has the financial flexibility to invest in programming, digital expansion, and operational improvements, all of which could accelerate its path to profitability. The sustained growth in viewership—up 50% in Q1 2025—suggests that Newsmax is resonating with the American audience, a trend likely to continue as political polarization drives demand for alternative media voices. As the company navigates its post-IPO phase, the expected end of the underwriter quiet period in 3-4 weeks, may bring more traditional research coverage, potentially attracting institutional investors and further boosting the stock.
Summary:
Newsmax, Inc. ($NMAX) is a bullish stock, underpinned by robust financial growth, strategic developments, and a favorable market environment in news media. The company’s trajectory points to continued upward movement in its stock price. Investors looking for a high-growth opportunity in the media sector should keep a close eye on $NMAX as it continues to redefine its place in the industry.
optics_guy
1 week ago
Ouch!
"CNN- The pro-Trump channel Newsmax defamed Dominion Voting Systems by falsely accusing the company of rigging the 2020 presidential election, a Delaware judge ruled Wednesday.
But it’ll be up to a jury to decide whether Newsmax intentionally smeared Dominion with “actual malice” and must pay millions of dollars in damages.
Delaware Superior Court Judge Eric Davis handed down several key pretrial rulings in Dominion’s favor, weeks before a jury trial that is scheduled to begin on April 28.
An out-of-court settlement is always possible. That’s how Dominion’s similar lawsuit against Fox News ended in 2023, with a record-breaking $787 million agreement.
As he did in the Fox News case, Davis ruled that all of the allegations that Dominion committed massive electoral fraud in 2020 were false. He also concluded that these allegations weren’t presented on Newsmax as matters of “pure opinion” from hosts or guests, which would’ve given them more protections under the First Amendment.
The judge’s conclusions that all of Newsmax’s election-related broadcasts in the lawsuit were defamatory is a victory for Dominion’, but that doesn’t mean Newsmax has been found liable for violating defamation laws. That question will go to the jury.
The right-wing network denies wrongdoing and has repeatedly pointed out that it ran a “clarification” segment in December 2020, and posted an article online, saying it didn’t have evidence that Dominion manipulated any votes.
“Newsmax covered both sides of the 2020 election dispute fairly,” a Newsmax spokesperson said in a statement. “At no time did it defame Dominion. This case represents a serious threat to free speech and a free press and Newsmax will defend itself vigorously at trial.”
Taken together, the rulings increase the chances that Newsmax might feel compelled to settle the case instead of rolling its dice with a jury that might award significant damages to Dominion. The voting technology company is asking for more than $1 billion, which Newsmax’s lawyers have argued is a massively inflated figure detached from real losses.
The case stems from false on-air allegations from Newsmax hosts and guests that Dominion colluded with Democratic operatives to manipulate millions of votes in 2020, flipping votes from President Donald Trump in order to elect then-candidate Joe Biden.
Newsmax, which is led by Trump ally Chris Ruddy, launched its initial public offering last week. If a trial does happen, Ruddy and some of the network’s TV hosts, like Greg Kelly and Chris Salcedo, are expected to testify. Newsmax agreed in September to pay $40 million to settle a lawsuit from Smartmatic, another voting company that was similarly smeared."
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