Newsmax Stocks Suffer Brutal 77% Wipeout After ‘Meme Stock’-Style Boom

Alex Griffing

Two days after eye-popping boom that briefly spiked Newsmax shares, the MAGA media stock bubble burst as those values cratered, plunging 77.5% to $52.52 and wiping out nearly $24 billion in market value.

Just 24 hours earlier, the right-wing cable outlet had closed at a staggering $233 a share, giving it a surreal $30 billion valuation — $5 billion more than Fox Corp, points out The Independent’s Justin Baragona.

The implosion marks a brutal correction for what market watchers had already labeled a “meme stock” fantasy. Retail traders, many fueled by pro-Trump forums, had bid the stock up by nearly 2,000 percent in two days, even as analysts raised red flags about Newsmax’s fundamentals — or lack thereof, according to Baragona.

Newsmax went public Monday through a Regulation A offering — an SEC workaround that allows smaller companies to raise capital directly from retail investors, often with fewer disclosures. About 30,000 small investors jumped in, helping push the stock to a high of $279 before gravity kicked in. By Wednesday, the network’s market cap had collapsed to $6.7 billion.

The conservative news outlet lost $72 million last year despite a Trump-era ratings surge, and reaches only a fraction of Fox News’ audience while also facing legal tests from Dominion Voting Systems over its reporting on the 2020 election.