Newsmax Stock Is Extremely Volatile Today. Does It Have Anything to Do With Trump's Tariffs?
Shares of conservative media outlet Newsmax (NYSE: NMAX) traded with extreme volatility today. Shares fell as much as 24% this morning before doing a complete 180. As of 1:50 p.m. ET, the stock traded about 23% higher.Newsmax raised $75 million in a more limited IPO on Monday. The company went public under a Securities and Exchange Commission exemption that allows it to raise up to $75 million over a 12-month period without going through the full registration process required for most companies pursuing a non-exempt IPO. Interestingly, Newsmax's IPO was sold to 30,000 retail investors, who effectively turned the company into a meme stock. Newsmax's coverage has been very loyal to President Donald Trump.Newsmax's stock took flight immediately following its IPO, soaring as much as 2,230% by Tuesday. The limited number of shares sold, roughly 7.5 million, contributed to the surge. At that point, it also likely became a difficult stock to short, according to some experts, due to how expensive it would be to borrow the necessary shares. Yesterday, however, shares of Newsmax plummeted 77%.Continue reading
Shares of conservative media outlet Newsmax (NYSE: NMAX) traded with extreme volatility today. Shares fell as much as 24% this morning before doing a complete 180. As of 1:50 p.m. ET, the stock traded about 23% higher.
Newsmax raised $75 million in a more limited IPO on Monday. The company went public under a Securities and Exchange Commission exemption that allows it to raise up to $75 million over a 12-month period without going through the full registration process required for most companies pursuing a non-exempt IPO. Interestingly, Newsmax's IPO was sold to 30,000 retail investors, who effectively turned the company into a meme stock. Newsmax's coverage has been very loyal to President Donald Trump.
Newsmax's stock took flight immediately following its IPO, soaring as much as 2,230% by Tuesday. The limited number of shares sold, roughly 7.5 million, contributed to the surge. At that point, it also likely became a difficult stock to short, according to some experts, due to how expensive it would be to borrow the necessary shares. Yesterday, however, shares of Newsmax plummeted 77%.
