Newsmax shares skyrocketed briefly before plummeting 77.5% in a shocking market correction, erasing nearly $24 billion in valuation. The surge, initially fueled by retail traders engaging on pro-Trump platforms, was marked by an unprecedented 2,000% increase within two days, raising questions about the stock's fundamental value. Following a public offering via a Regulation A route, 30,000 small investors contributed to this spike. The fall revealed the outlet's precarious financial situation, having lost $72 million while sustaining a limited audience compared to Fox News, alongside ongoing legal challenges.
The MAGA media stock bubble burst as Newsmax shares cratered, plunging 77.5% to $52.52 and wiping out nearly $24 billion in market value.
The implosion marks a brutal correction for what market watchers had labeled a meme stock fantasy fueled by pro-Trump forums.
Retail traders had bid the stock up by nearly 2,000 percent in two days, even as analysts raised red flags about Newsmax's fundamentals.
Even with a Trump-era ratings surge, Newsmax lost $72 million last year, indicating major challenges ahead.
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