Meme stock craze makes a comeback? American conservative media Newsmax (NMAX.US) skyrocketed 22 times in its first two days of trading.

The stock price of the conservative media company Newsmax (NMAX.US) surged 180% again on Tuesday, continuing its amazing rise. The day before, the company performed well in its first day of trading on the New York Stock Exchange, closing with a gain of over 700%, with a total increase of over 2200% in its first two days of trading. This stock has been popular among retail investors. Traders say that the trading pattern of this stock is similar to other popular retail stocks known as Meme stocks. The cable TV news operator raised $75 million through a "mini IPO" last week and hopes to expand its influence after Donald Trump returns to the White House. Peter Andersen, founder of Andersen Capital Management, said, "Given the current political turmoil, now may be the best time for Newsmax to go public." He added, "This indicates that conservative investors may be more than expected by the market." As of Tuesday's close, Newsmax's stock price was $234, up $150 from Monday's close. In comparison, the IPO price of this cable news network was $10. Stocks such as video sharing platform Rumble (RUM.US) and Trump Media & Technology Group (DJT.US) rose last year on bets of a Trump victory in the U.S. presidential election. Art Hogan, market strategist at B. Riley Wealth Management, said that Newsmax's rise is almost identical to the pattern seen in Trump Media & Technology Group. He added, "The trading volume is very high. The same stocks are being bought and sold repeatedly." Dann Ryan, managing partner at Sincerus Advisory, said, "This stock has all the characteristics of a classic Meme stock." Despite this, comments on "America's retail investor headquarters" Reddit (RDDT.US) are mixed. Many investors on Reddit are enthusiastic about supporting stocks like Trump Media & Technology Group and GameStop Corp. Class A (GME.US). While some support Newsmax's anti-mainstream media propaganda, others are cautious about its stock price rise, especially when the company has not yet achieved profitability. Although Newsmax's revenue is growing, its losses are also expanding. In 2024, the company's total revenue was $171 million, with a loss of $72.2 million; while in 2023, revenue was $135.3 million, with a loss of $41.8 million. It is reported that due to the surge in Newsmax's stock price, right-wing media tycoon and Trump's old friend Chris Ruddy has become a billionaire. Ruddy, a former New York Post reporter and frequent visitor to Trump's Mar-a-Lago estate, founded Newsmax in 1998. He holds all of Newsmax's non-publicly traded Class A shares and 30.6% of its Class B shares. As of Tuesday's close, the value of Ruddy's B-class shares exceeded $9.1 billion. As of the close of the U.S. stock market on Tuesday, Rumble rose by nearly 8%, Trump Media & Technology Group rose by nearly 4%, and Reddit rose by nearly 5%.