April 1 (Reuters) – Shares of conservative news outlet Newsmax (NMAX.N)
, opens new tab soared more than 27% before the bell on Tuesday, extending their gains a day after a stunning debut on the New York Stock Exchange.
The stock traded at $106, more than 10 times the IPO price of $10, valuing the cable news network at $12.8 billion.
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Newsmax’s shares closed with a more-than-eight-fold gain at $83.51 on Monday, partly buoyed by retail interest. The stock remained the top trending ticker on retail investor-focused social media stocktwits.com.
The cable news operator, which raised $75 million in its “mini IPO” last week, is looking to expand its reach following President Donald Trump’s return to the White House earlier this year.
“It’s probably a perfect time for Newsmax to launch, simply because of all the volatility in the political arena currently,” said Peter Andersen, founder of Andersen Capital Management.
“This was a demonstration that there are more conservative investors than probably the market had anticipated,” he said.
Stocks such as video sharing platform Rumble (RUM.O)
, opens new tab and Trump Media & Technology Group (DJT.O)
, opens new tab rallied in the run-up to the presidential election last year as investors banked on Trump’s victory.
With $22.1 million worth of Newsmax shares changing hands by 7:40 a.m. ET, turnover was more than that of Broadcom (AVGO.O)
, opens new tab and GameStop (GME.N)
, opens new tab combined.
Founded in 1998 by Christopher Ruddy, Newsmax started as a digital brand and launched its cable news channel in 2014. It also streams for free on platforms such as its Newsmax app and YouTube.
An expected rebound in the U.S. IPO market has been tempered by the uncertainty caused by Trump’s tariff policy and fears of a prolonged trade war.
Reporting by Zaheer Kachwala, Medha Singh and Sukriti Gupta in Bengaluru; Editing by Leroy Leo and Sriraj Kalluvila
Our Standards: The Thomson Reuters Trust Principles.
