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Amidst the fall in the markets across the world, there is one stock that has given investors tremendous returns. The recently listed company Newsmax Inc. in the US market saw a tremendous rise of 735% from its IPO price. The rise of 180% continued the next day as well. In just two sessions, this stock has managed to give a tremendous return of 2,230%. With this rise, it has become a stock with a higher market capitalization than other media companies in the market.
By the end of trading on Tuesday, Newsmax's market capitalization reached $30 billion, surpassing Fox, Warner Bros Discovery, News Corp, Paramount, New York Times, and Trump Media. All of these stocks have also been quite volatile in recent times.
The largest shareholders got rich On Tuesday, 10 million shares of Newsmax were traded, increasing its market capitalization to $19.2 billion. This huge gain in two days has made the company's largest shareholders rich. Newsmax CEO, Christopher Ruddy, who owns about one-third of the company's shares, now has a stake worth $9.1 billion, making him richer than some of America's most prominent billionaires, such as Bill Ackman and Mark Cuban. Interactive Brokers Group Inc. founder Thomas Peterffy has the second-largest stake, now worth $5.4 billion. Earlier, the US market saw a tremendous boom in meme stocks during 2020 and 2021. During that time, stocks have delivered tremendous returns that outpaced fundamentals. GameStop is one example, which after hitting a high of over $80 in 2021 is now trading around $20 per share. A trend of a massive drop after a massive rally Only seven other stocks have gained more than 700% in the first session after their US IPOs in the past five years. Shares of such companies have, on average, fallen about 94% from their IPO prices and nearly 99% from their peaks. Newsmax reported revenue of $171 million last year.
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