Newsmax, known for promoting election fraud claims, went public and saw its stock soar over 2,000% in its first sessions before sharply correcting. This volatility, indicative of meme stock behavior, raised concerns as trading was halted multiple times. At its peak, Newsmax's market cap exceeded $29 billion, surpassing major competitors, although the company is unprofitable, posting losses even amidst high revenue. CEO Christopher Ruddy gained significantly from the stock surge, positioning himself as among America's wealthiest, despite not achieving sustainable financial success at Newsmax.
The unprecedented volatility of Newsmax's stock, surging over 2,000% and later plunging 79%, raises questions about the sustainability of such wild market behaviors.
Despite reaching a market value of $29 billion, Newsmax reported a $55 million loss in the first half of the previous year, highlighting the disparity between valuation and profitability.
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