Shares of the Trump-endorsed news channel Newsmax have soared by an astounding 2,200%, bringing its market value to nearly $30 billion. The surge has seen its stock price, initially priced at $10 per share, rocket to $233 by the end of Tuesday’s trading session, overtaking media heavyweights like Fox Corp, Warner Bros. Discovery, and Paramount Global.
Founded in 1998 as an online platform, Newsmax launched its cable news channel in 2014. The company experienced significant growth when it received endorsement from then-President Donald Trump, particularly during his first term. Trump’s support has solidified the channel’s position as a prominent conservative media outlet, though Newsmax’s founder, Christopher Ruddy, has long insisted that the network is not a direct extension of Trump’s political agenda.
Retail investors are largely credited with driving the dramatic rise in stock prices, drawing comparisons to the 2021 GameStop stock phenomenon. GameStop’s surge, fueled by retail investors’ online activism, became a hallmark of meme stocks—shares of companies that experience extreme volatility due to social media-driven trading.
The explosive growth of Newsmax’s stock highlights the increasing influence of retail investors, who have been reshaping the stock market landscape, particularly during the COVID-19 pandemic. As the channel has gained popularity, particularly among conservative audiences, Ruddy, a close friend of Trump, has become one of the wealthiest individuals in the U.S., with a net worth exceeding $9 billion, according to the Bloomberg Billionaires Index.
Despite its success, Newsmax’s path has not been without controversy. Earlier this month, the company agreed to pay $40 million to settle defamation claims from voting machine company Smartmatic, which accused Newsmax of spreading false election fraud allegations in the 2020 U.S. presidential election.
Newsmax’s surge in value represents the growing intersection of media, politics, and retail investment, with conservative media outlets like Rumble and Trump’s media venture also entering the stock market in recent years.
