Shares of Newsmax, the conservative cable television channel, experienced a dramatic surge in early trading on Tuesday, climbing more than 100% just a day after an already explosive debut on the New York Stock Exchange.
The stock, which closed at $83.51 per share on Monday after spiking over 700% from its opening price of $14, continued its upward trajectory, pushing the company’s valuation above $10 billion. The meteoric rise has propelled founder and CEO Christopher Ruddy, who holds approximately 39.2 million Class A shares and 81.4% of the company’s voting stock, into the billionaire ranks, with his stake now valued at over $6 billion.
The stunning performance follows Newsmax’s initial public offering (IPO) on Monday, marking a significant milestone for the right-wing media outlet. In an email to investors on Tuesday, the company highlighted its blockbuster first day of trading, signaling confidence in its growth trajectory.
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Newsmax, which began as a digital media platform before transitioning into a cable channel, has positioned itself as a competitor to Fox News, the dominant player in conservative television. Ruddy, appearing on CNBC’s Squawk Box on Monday, emphasized his strategy to capture market share from Fox by leveraging Newsmax’s growing audience and its appeal during President Donald Trump’s second term.
According to Nielsen data, Newsmax ranks as the fourth most-watched cable news channel, trailing Fox News, MSNBC, and CNN. Between December 30, 2024, and March 20, 2025, the channel averaged 309,000 primetime viewers and 211,000 daytime viewers. While these figures reflect steady growth, they remain a fraction of Fox News’s audience, which averaged nearly 3.1 million primetime viewers and roughly 2 million daytime viewers over the same period. Despite the disparity, Newsmax’s traction among conservative viewers, bolstered by its alignment with Trump’s political resurgence, is considered significant.
Ruddy has been vocal about his disdain for the traditional cable bundle model, which he argues harms both the industry and consumers.
“We hate the bundle. The bundle is terrible for the cable industry. It’s terrible for consumers,” he told CNBC.
Historically reliant on advertising revenue, Newsmax has recently begun securing fees from pay-TV distributors to carry its network, a shift that has helped fuel its expansion as it builds its audience base. This hybrid revenue model, combined with its focus on a niche conservative demographic, has contributed to the company’s rapid ascent in a challenging media industry where cable TV has struggled against the rise of streaming services.
However, the euphoria surrounding Newsmax’s stock surge has raised concerns among analysts and investors, who warn that the channel’s trajectory could mirror that of Truth Social, another conservative-backed media venture that experienced a similar boom-and-bust cycle.
Truth Social, launched in 2022 by Trump Media & Technology Group, aimed to provide a “free speech” alternative to mainstream social media platforms like Twitter (now X). Following its debut, Truth Social’s stock soared amid intense hype from Trump supporters and speculative investors, reaching a peak valuation of over $10 billion in early trading sessions. The platform initially attracted millions of users eager for an uncensored conservative space, and its stock price reflected that enthusiasm, climbing more than 800% within weeks of its IPO.
Yet, Truth Social’s fortunes quickly unraveled. By mid-2023, the platform faced significant challenges, including technical glitches, a limited user base, and an inability to compete with established social media giants. Engagement plummeted as the initial frenzy faded, and advertisers grew wary of associating with a politically polarizing brand. The stock, which once traded at over $100 per share, crashed to below $5 by late 2024, wiping out billions in market value and leaving investors with substantial losses.
The decline was attributed to a lack of sustainable growth, overreliance on a narrow ideological audience, and failure to adapt to broader market demands—a cautionary tale for ventures banking on conservative momentum alone.
Analysts now question whether Newsmax could face a similar fate. While the channel benefits from a more established presence in cable television and a growing viewership, its valuation—exceeding $10 billion—appears inflated relative to its audience size and revenue potential. The cable industry itself remains under pressure as consumers increasingly abandon traditional bundles for streaming platforms like Netflix, YouTube, and Disney+.
Newsmax’s reliance on distributor fees and advertising in a shrinking market could prove unsustainable if its growth stalls or if it fails to broaden its appeal beyond its core conservative base. Moreover, competition from Fox News, which commands a vastly larger and more loyal audience, poses a formidable challenge to Newsmax’s ambitions.