Newsmax Overtakes Fox: A Surprising Stock Surge
April 1st, 2025 was not just another day on Wall Street. It marked an unexpected turn of events as Newsmax, a right-wing media powerhouse, saw its shares soar by an astonishing 180%, leaving even giants like Fox Corp. in its wake. Let’s dive into how this seismic shift happened and what it means for the media landscape moving forward.
The Surge Phenomenon
Newsmax’s trading opened at a modest \(83.51, yet closed at a remarkable \)234 by the end of the day. This catapulted its market cap to just below \(30 billion, surpassing Fox's \)23.4 billion. According to Nasdaq, such volatility led to trading halts five separate times throughout the day, as the financial world paused to catch its breath. This whirlwind began with Newsmax’s grand debut on the New York Stock Exchange just a day earlier, showcasing an initial 700% stock surge.
Unmasking the Key Figures
Behind this dizzying ascent is Christopher Ruddy, Newsmax’s CEO, whose personal stake in the company is now valued at a staggering $9.2 billion. While this pales compared to Rupert Murdoch’s fortune, Ruddy is undeniably basking in the glow of Newsmax’s newfound valuation prowess.
The Conservative Investor Wave
As Peter Andersen from Andersen Capital Management told Reuters, this surge could signify a growing pool of conservative investors who find Newsmax’s offerings enticing. With the current volatility in the political scene, the timing of Newsmax’s IPO seems nothing short of strategic genius.
Comparing the Media Titans
Beyond Fox, Newsmax now stands ahead of The New York Times Company and CBS parent Paramount in market cap, valued at \(8.1 billion and \)7.9 billion, respectively. This disruption places Newsmax among top-tier media entities, demonstrating not just financial might, but also a shifting viewer allegiance.
The Looming Trials and Settlements
Yet, beneath the celebration, challenges loom. Scheduled for April 28, Newsmax faces a jury trial against Dominion Voting Systems, seeking $1.6 billion in damages for 2020 election-related claims. Furthermore, a substantial settlement with Smartmatic is due, marking an impending financial hurdle.
The Birth of a Media Giant
Launched with an IPO of $75 million, Newsmax’s market debut instantly transformed it into a “growth stock,” as proclaimed by CEO Ruddy. His vision reflects a kaleidoscope of changing media consumption habits, with viewers increasingly casting their vote through remote controls and app downloads.
The stock market is unpredictable, and Newsmax’s rise exemplifies this volatility. As Newsmax carves its path and grapples with new challenges, its influence in the media world is undeniable. According to Forbes, this unprecedented leap forward underscores an evolving narrative that could redefine the future of news media.
