In the third act of its dramatic debut as a public company, conservative media company Newsmax faced a harsh reality as its stock lost a sizable chunk of its early gains, though it remains valued favorably compared to comparable companies, with one notable exception: The parent of President Donald Trump’s Truth Social.
Shares of Newsmax tanked as much as 50% to below $120 by late morning Wednesday before recovering slightly to a 45% loss, shedding more than $10 billion in value as its market capitalization dropped from $20.7 billion to $11 billion, according to Yahoo Finance.
Newsmax stock is still up about 1,200% from its initial public offering price of $10.
As such, Newsmax’s valuation remains far loftier than the typical stock’s compared to the company’s financial performance.
In 2024, Newsmax reported a $72 million net loss on $171 million of revenue, meaning its price-to-sales ratio is a sky high 63.9 (the commonly used price-to-sales ratio compares Newsmax’s $11 billion market capitalization to its last 12-month sales).