The News Max booth will air when participants try out the guns on display at the National Rifle Association Annual Conference held in Houston, Texas on May 29, 2022.
Callaghan O’Hare |Reuters
Conservative news channel stocks Newsmax More than 70% fell sharply on Wednesday as the new public company proved to be short-lived.
After debuting on the New York Stock Exchange, the stock fell to a whopping 77.5% following a surge of 2,230% in Newsmax’s first two days of trading. At one point, the rally gave the company a market capitalization of nearly $30 billion, exceeding the market capitalization of legacy media companies. Warner Bros Discovery and Fox Corp.
Newsmax was listed on the New York Stock Exchange through the so-called Regulation A offering rather than a traditional initial public offering. Such offerings allow small and medium-sized businesses to raise capital without undergoing a full registration process with the Securities and Exchange Commission. The main focus is selling to retail investors. In this case it was sold to around 30,000 retail investors.
The public offering certainly attracted attention from retailers. Some of them promoted the stock as “new GMEs” in online chat rooms. GME refers to Meme Stock Gamestop, which made history through the speculative trading boom in 2021.
Newsmax has small “floats” or stocks that can be used for trading. Of less than 6% of Newsmax shares or 7.5 million of the 128 million fully diluted shares total, 7.5 million shares have been published.
The conservative television news outlet has risen in elections with President Donald Trump and other prominent Republicans, but it still lags behind the dominant Fox News. Overall, Newsmax ranks in the top 20 among average viewers on cable networks, both in prime time and daytime, Nielsen said.
