Newsmax Soars with 2,200% Surge in Shares Following Trump’s Endorsement: What It Means for Investors

Newsmax has made headlines recently with its stock price soaring over 2,200% since its launch on the New York Stock Exchange. Initially priced at $10, the shares reached an impressive $233 by the end of the trading session on Tuesday. This surge has pushed Newsmax’s market value close to $30 billion, surpassing major players like Fox Corp and Warner Bros Discovery.

Founded in 1998 as an online platform, Newsmax launched its cable news channel in 2014. Its rise in popularity took off in 2020 after receiving endorsements from former President Donald Trump, who had grown increasingly critical of Fox News. Trump’s support has encouraged many viewers and investors to rally around the network, although Newsmax’s founder, Christopher Ruddy, has stated he did not want the channel to be branded as “Trump TV.”

Ruddy himself has benefited greatly from this stock surge. His net worth has surpassed $9 billion, according to the Bloomberg Billionaires Index. The surge has drawn comparisons to other retail investing trends, particularly the spikes seen with meme stocks like GameStop.

Recent studies indicate that retail investors have dramatically reshaped the market landscape. According to a report from the CFA Institute, a significant number of individual investors participated in trading during the pandemic, making them a powerful force in the stock market. This shift highlights how everyday people now influence stock prices in ways not seen in the past.

Interestingly, just this month, Newsmax agreed to pay $40 million to settle defamation allegations from voting machine company Smartmatic. The case centered around false claims regarding the 2020 election. Such controversies have surrounded Newsmax, but they’ve not deterred its rapid growth.

As more conservative companies begin to enter the stock market, like Rumble Inc and Trump Media & Technology Group, it seems that Newsmax’s success might inspire others in the media landscape to pursue similar paths. The evolving media environment continues to reflect changing viewer preferences, driven by social and political dynamics that engage both audiences and investors alike.

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