Key Takeaways:

• Newsmax shares skyrocketed over 700% in their first day of trading.
• Trading was halted multiple times due to extreme volatility, culminating in a market valuation surpassing $30 billion.
• The conservative network’s growth follows a significant endorsement from former President Donald Trump.

Newsmax, the conservative media outlet that recently went public on the New York Stock Exchange, saw its stock price rocket over 2,200% during its debut, drawing the attention of investors and market analysts alike. Initially priced at $10 per share, Newsmax stock closed at a staggering $233 at the end of its second trading day, resulting in a market capitalization nearing $30 billion, reflecting a valuation that exceeds established giants like Fox Corp and major media companies such as Warner Bros Discovery and Paramount Global.

The company's rapid climb has been attributed to a surge in retail investor interest, with some comparing the phenomenon to the infamous GameStop trading frenzy, where investors bought shares primarily to align with the stock's perceived value rather than financial fundamentals. Many believe that the impulsive buying behavior reflects a rising trend of investing in "meme stocks," where popularity can greatly influence prices.

Newsmax, which was founded in 1998 and launched its cable news channel in 2014, gained significant traction after receiving endorsements from Donald Trump during his presidency, further bolstering its audience. Christopher Ruddy, the CEO, expressed aspirations of positioning Newsmax as a competitor to Fox News, which had dominated conservative media for years. Under Ruddy's guidance, his ownership stake has increased in value significantly, making him one of the wealthiest individuals in the country.

Despite the positive momentum, analysts have raised concerns about the sustainability of Newsmax’s current valuation given its recent revenue figures and the ongoing litigation concerning defamation claims from voting technology companies like Smartmatic. Last year, Newsmax settled allegations concerning false reporting about voting malpractice, incurring significant financial implications.

For more detailed insights, you can check the reports from Business Insider, Forbes, and CBS News.