Newsmax, the right-wing cable news channel, has been on a roller coaster since its shares started trading on the public markets on Monday.
The stock rocketed to a high of $279 on the New York Stock Exchange this week, a price that briefly valued the company at more than $20 billion. On Wednesday, the stock crashed to $52, giving it a market valuation of about $5 billion by the time the market closed. It was briefly ahead of U.S. Steel, which is valued at roughly $9.5 billion.
The wild stock market debut was just the latest unexpected twist for Newsmax, started more than two decades ago as a long-shot challenger to more established cable news channels like Fox News, CNN and MSNBC.
Chris Ruddy, the founder of Newsmax, said in an interview on Wednesday that he wasn’t focused on the gyrating share price of the company.
“Whether the stock price goes to $1,000 or it goes to $10, I have to do the same thing: Continue building Newsmax and to do my job,” Mr. Ruddy said.
Here’s what you need to know:
Newsmax is the brainchild of Mr. Ruddy, a former New York Post reporter with ties to President Trump’s social circle in South Florida. Mr. Ruddy, 60, founded Newsmax in 1998 and has since built it into a conservative media darling, with a cable channel, a magazine and a digital subscription service, Newsmax+. Like many other conservative media businesses, Newsmax sells health supplements, which it calls its “nutraceuticals business.”
The company, which is known primarily for its cable channel, has reliably conservative programming, with anchors including Greg Kelly, a former Fox News host, and Michael Savage, a right-wing radio host. The channel is carried on most major cable and satellite providers, including DirecTV, Dish, Comcast, Charter and Verizon.
The channel made its stock market debut on Monday and has benefited from the investor enthusiasm in companies associated with Mr. Trump, such as the Trump Media & Technology Group, the parent company of his Truth Social platform.
Despite its lofty valuation, Newsmax has struggled to turn a profit during the run-up to its stock market debut. In the first half of 2024, Newsmax generated $79.8 million in revenue but lost $55.5 million, warning investors that difficulties facing the TV industry could affect the company’s ability to turn a profit.
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