Conservative cable news channel Newsmax is getting a Trump bump on Wall Street.
The Boca Raton, Fla., outlet‘s stock price surged after its initial public offering Monday. Shares offered at $10 closed at $233 a share Tuesday afternoon, giving the company a market valuation of over $20 billion.
Newsmax itself tracked the stock’s movement onscreen throughout the day.
The Newsmax performance is surprising, considering the company — whose business is pure-cable play — has scant revenue from pay TV operators, according to analysts. (Chris Ruddy, Newsmax founder and chief executive, told CNBC Monday that the network is getting carriage fees).
Newmax has no blue chip advertisers, making it largely dependent on direct-to-consumer marketers, many of whom sell Trump-related products. The commercials that air on Newsmax often have conservative TV personalities as spokespeople.
The IPO comes at a time when the traditional cable business is eroding, as consumers are bypassing pay TV subscriptions. A 10-K filing ahead of the public offering warned that “changes in consumer behavior and evolving technologies and distribution platforms may adversely affect the company’s business, financial condition and results of operations.”
The company does offer a direct-to-consumer digital product, Newsmax+, which subscribers can use to stream the network’s programming for $4.99 a month.
The early performance of the stock is likely being driven by President Trump’s enthusiastic supporters, who are super-served by Newsmax commentators providing a positive narrative for the White House throughout the day. Newsmax touted the IPO in its programming.
Wall Street saw similar movement with Trump Media Technology Group, the president’s social media venture that owns Truth Social, which traded as high as $100 a few months after its IPO in 2022 but then fell dramatically. The stock rose again during his 2024 presidential campaign. It’s now trading at around $20.
Newsmax had a brief period in 2020 and early 2021 when its ratings surged to all-time highs as it attracted conservative viewers despondent over Trump’s loss to Joe Biden in the 2020 presidential election.
Many Trump supporters were angry with Fox News after it correctly called the state of Arizona for Biden several days before its rivals. Newsmax waited weeks before calling Biden the president-elect.
Fox News eventually bounced back and currently has 70% of the audience for cable news, its most dominant share ever, according to Nielsen.
Newsmax‘s audience grew last year and the company touts its position as the fourth most-watched cable news channel behind Fox News, MSNBC and CNN. In the first quarter of 2025, Newsmax averaged 305,000 viewers in prime time according to Nielsen, ranking 18th among all cable networks.
The network lost $72 million in 2024, despite an increase in revenue. Last year, Newsmax paid $40 million to voting software company Smartmatic to settle a defamation lawsuit. Smartmatic was also given an option to buy shares in the company.
Smartmatic’s suit said Newsmax provided a platform for its hosts, Trump and his attorneys and allies to falsely claim that the company’s software was manipulated to deliver the election for Biden.
Newsmax is facing a similar $1.6 billion lawsuit from Dominion Voting Systems. Dominion reached a $787.5 million settlement with Fox News in 2023 after it sued over the network’s presentation of Trump’s false claims.