Why Newsmax Stock Is Getting Crushed Today | Global Market News
Shares of the conservative media outlet Newsmax (NYSE: NMAX) had sunk by practically 50% as of 1:25 p.m. ET right now. There was no apparent motive behind the transfer however the stock has traded like a meme stock since going public on Monday, so massive strikes are to be anticipated.Meme stocks are riskyNewsmax, which has the fourth-largest cable news viewers within the U.S., made its debut on the New York Stock Exchange on Monday in a small initial public offering (IPO) that raised $75 million and priced shares at $10. The stock then took off, rising as high as $233 per share yesterday earlier than crashing right now. Still, the stock is up over 1,000% because it started trading.
Where to invest $1,000 proper now? Our analyst staff simply revealed what they consider are the ten best stocks to buy proper now. Learn More »Newsmax has long supported President Donald Trump, and it has not been unusual to see Trump-linked media corporations reminiscent of Trump Media & Technology Group trade like meme stocks.”This makes the early run-up in DJT seem like child’s play. But both share the characteristic of offering a play on MAGA, and we’ve seen that sort of enthusiasm take on a life of its own,” Interactive Brokers Chief Strategist Steve Sosnick just lately instructed Barron’s. Sosnick additionally famous that the small quantity of shares offered (7.5 million) has put fuel on the fire, and that borrowing shares to short is probably going too costly proper now.Trade at your own riskAs I identified yesterday, Newsmax makes no sense to buy from a elementary standpoint, on condition that the company reported a loss of over $72 million in 2024 and now trades at over an $10 billion market cap. Being a meme stock, it might definitely surge again within the close to time period, however shopping for it quantities to a extremely speculative and dangerous gamble.Should you invest $1,000 in Newsmax proper now?Before you buy stock in Newsmax, take into account this:
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
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