Newsmax, the conservative cable channel, saw a dramatic rise and fall in early 2025, briefly surpassing Fox Corp.’s valuation after its New York Stock Exchange debut on March 31, only to plummet 77% by April 2. The network’s stock soared 2,230% in its first two days, reaching a $7.3 billion market cap, before crashing back to earth, shedding three-quarters of its value in a single day. This chaotic boom-and-bust cycle, driven by speculative trading and market volatility, underscores the risks of meme stock mania and raises questions about Newsmax’s long-term prospects in a competitive media landscape.
Newsmax debuted on the NYSE through a Regulation A offering, raising $75 million by selling 7.5 million shares at $10 each. The stock surged over 700% on its first day, March 31, hitting a dozen trading halts as retail traders on platforms like Reddit dubbed it the “New GME,” referencing GameStop’s 2021 meme stock boom. By April 1, Newsmax’s market cap briefly eclipsed Fox Corp.’s $7 billion valuation, a stunning achievement for a network ranking 20th in cable viewership. The surge was fueled by President Donald Trump’s influence, reflecting conservative enthusiasm for an alternative to Fox.
The bubble burst on April 2, with shares tumbling 77.5%, erasing $5.6 billion in value. The drop, one of the sharpest in media history, followed a 2024 net loss of $401 million, exposing Newsmax’s shaky fundamentals. The network’s small float—limited shares available for trading—amplified volatility, while profit-taking by early investors triggered the sell-off. By April 3, shares stabilized at $7.11, a far cry from their $223 peak.
Newsmax’s brief triumph over Fox highlighted its appeal among Trump supporters, with prime-time viewership up 15% in 2024 following Trump’s election win. However, its financial struggles, including a 2024 defamation settlement with Smartmatic over 2020 election claims, and a shift to streaming amid cable decline, cast doubt on its sustainability. Fox, with a $1.5 billion annual profit, remains the conservative media titan.
The episode mirrors Rumble’s 2023 stock volatility, highlighting the risks of speculative trading in media stocks. Newsmax’s 2025 trajectory depends on stabilizing its finances and growing its 1 million daily viewers in a crowded market. This wild ride, while a momentary victory, serves as a cautionary tale of market exuberance and the challenges facing upstart media in the shadow of giants like Fox.