The Newsmax IPO is one for the record books.
Priced at $10 per share, the cable TV company closed its first day at $83.51 and its second at $233, after rising as high as $265. That’s left the stock up 2,230% in its first two days of trade.
Christopher Ruddy, Newsmax’s CEO and an ally of President Donald Trump, has stock valued at over $9 billion.
The right-wing conservative TV outlet is now worth more than Fox, which has a market cap of $25 billion. Fox shares a similar ownership to News Corp., which holds MarketWatch, the publisher of this report.
These meteoric gains now leave Newsmax’s valuation at truly nosebleed levels, and in premarket trade on Wednesday, shares were trading hands at $183, a loss of 21%.
Charlie Bilello, the chief market strategist at wealth management firm Creative Planning, pointed out its market capitalization, of $32 billion, is higher than 235 companies in the S&P 500.
Its trailing 12-month sales of $156 million are not higher than any of those companies — in fact, its sales are 78% below the company with the lowest sales in the S&P 500, he added.
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