Shares of Newsmax Inc. (NMAX) continued their volatile journey in after-hours trading on Thursday, plummeting 5.02% as investors grapple with the media company's true valuation following its recent initial public offering (IPO). This latest decline adds to the dramatic swings experienced by the stock since its market debut earlier this week.

The after-hours drop follows a tumultuous regular trading session, where Newsmax shares had already fallen 77.5% on Wednesday. This sharp decline came after an extraordinary 2,230% gain in the stock's first two days of trading post-IPO. The conservative media outlet, which went public on Monday at $10 per share, saw its stock price soar to as high as $233 by Tuesday's close, drawing comparisons to meme stock phenomena.

Market analysts attribute the ongoing sell-off to a combination of factors, including profit-taking, reassessment of the company's fundamentals, and growing skepticism about its long-term prospects. Despite the initial euphoria, Newsmax's reported revenue of $171 million last year appears inconsistent with the multi-billion-dollar market capitalization it briefly achieved. Additionally, ongoing litigation related to its 2020 election coverage could potentially impact the company's financial outlook. As the dust settles from the IPO frenzy, investors seem to be adopting a more cautious approach, leading to continued downward pressure on the stock price.