Trump-endorsed news channel sees shares surge 2,200%

Newsmax, a conservative news channel, made its debut on the New York Stock Exchange on Monday, and it has already seen a remarkable increase in its stock price. Initially, the shares were priced at $10 each, but by the end of Tuesday's trading session, the price skyrocketed to $233. This represents an astonishing surge of 2,200%, which has propelled the company's market value to nearly $30 billion. This valuation surpasses that of Fox Corp, the parent company of Fox News, as well as other major media companies like Warner Bros Discovery and Paramount Global. nnThe rise in Newsmax's stock price has made its founder and CEO, Christopher Ruddy, one of the wealthiest individuals in the United States, with a net worth exceeding $9 billion, according to the Bloomberg Billionaires Index. Analysts have noted that the surge in share prices was largely driven by retail investors, who are individual investors rather than professionals working for investment firms. This phenomenon has drawn comparisons to the dramatic price increase of GameStop, a video game retailer that gained popularity among certain investors during the pandemic, leading to the concept of 'meme stocks. ' nnNewsmax was established in 1998 as an online news platform and launched its cable news channel in 2014. The channel's ratings received a significant boost in 2020 when it was endorsed by former President Donald Trump, who had grown increasingly frustrated with Fox News. Ruddy, a close friend of Trump, has expressed that he does not want Newsmax to be labeled as 'Trump TV. ' However, the channel faced criticism earlier this month for reporting false claims regarding the 2020 election, which some believe contributed to its controversial reputation. Newsmax is now part of a growing trend of conservative media companies entering the stock market, joining others like the Canadian video platform Rumble Inc and Trump's own media venture, Trump Media & Technology Group.