Shares of the conservative cable network Newsmax continued their meteoric rise on Tuesday, more than doubling in value just a day after the company made a historic debut on the stock market.
A Blockbuster Debut
On Monday, Newsmax stunned Wall Street by soaring over 700% in its first day of public trading. The stock, which opened at just 14 dollars per share, closed at an astonishing 83.51 dollars, catapulting the company’s market valuation beyond 10 billion dollars.
This remarkable surge has also turned Newsmax’s founder and CEO, Christopher Ruddy, into a billionaire overnight. Holding nearly 39.2 million Class A shares and controlling more than 81% of the company’s voting stock, Ruddy’s stake is now valued at over 6 billion dollars.
Momentum Continues
The excitement surrounding Newsmax didn’t fade after its record-breaking debut. By early trading on Tuesday, the stock had already climbed another 100%, further cementing its status as one of the most talked-about market entries in recent history.
To mark the occasion, Newsmax sent an email to investors celebrating the company’s rapid ascent. Despite the volatile nature of media stocks, the channel’s unique positioning in conservative cable news appears to have resonated strongly with investors.
Growth in a Changing Media Landscape
Newsmax has been steadily growing in prominence, particularly during President Donald Trump’s second term. While it remains far behind industry giant Fox News, the network has carved out a dedicated audience, making it the fourth most-watched cable news channel behind Fox News, MSNBC, and CNN.
However, viewership numbers still highlight the challenge ahead. Between December 30 and March 20, Newsmax averaged about 309,000 viewers in primetime and 211,000 during the daytime, according to Nielsen data. In comparison, Fox News pulled in nearly 3.1 million primetime viewers and around 2 million daytime viewers during the same period.
Newsmax’s Strategy: Challenging the Cable Bundle
Speaking on CNBC’s Squawk Box on Monday, Ruddy discussed his company’s transformation from a digital media outlet to a cable channel, aiming to challenge Fox News for conservative viewers.
“We hate the bundle. The bundle is terrible for the cable industry. It’s terrible for consumers,” Ruddy stated, referring to the traditional cable subscription model. Newsmax has increasingly relied on distribution fees from pay TV providers to support its growth, moving beyond an advertising-dependent model.
What’s Next for Newsmax?
As streaming services continue to pull viewers away from traditional cable, Newsmax’s ability to sustain this early momentum will be put to the test. Whether it can convert its financial success into long-term viewership growth remains to be seen.
For now, the company’s jaw-dropping stock surge has placed it firmly in the media spotlight, and investors will be watching closely to see if this momentum can continue.
Waseem Ureeba is a passionate tech enthusiast and blogger, dedicated to exploring the latest trends in technology. With 3 years of experience in the digital world, he shares insightful articles, reviews, and guides to help readers stay informed. His expertise covers gadgets, software, and innovative tech solutions, making complex topics accessible to everyone.
