Newsmax Stock Soars Higher Than a Balrog's Flame! Can it Last?

A New Player Enters the Field

Hark my friends! A new star flickers in the firmament of news or perhaps a new weed sprouts in the garden depending on your point of view. Newsmax a network whose name was whispered in the halls of power has now boldly stepped into the light of the New York Stock Exchange. On Monday last under the symbol 'NMAX' it dared to open its account at $14 a share after an initial valuation of a mere $10. One might say 'Not all those who wander are lost,' but in this case they certainly seem to have found a rather large pot of gold!

From Humble Beginnings

Christopher Ruddy the founder of this... shall we say *spirited* news outlet declared on the CNBC's "Squawk Box" that he saw a grand opportunity to compete with the Fox. 'I think there was a demand for more competition against Fox,' he said. One is reminded of Pippin's naivete when entering Mordor but perhaps Ruddy is made of sterner stuff. He began this journey in 1998 a mere digital offering before transforming into a cable network in 2014. From acorns mighty oaks do grow or in this case from a website a cable news channel arises!

The Tides of Change

The timing is curious for traditional cable TV is waning. Like the Elves departing Middle earth viewers are flocking to the streaming shores. Yet news and live sports still hold sway drawing the gazes and the gold. It seems the appetite for right wing content has grown with the rise of figures like Trump creating a niche Newsmax is keen to fill. A perilous path they tread for 'It is not the strength of the body that counts but the strength of the spirit.'

Claiming a Spot at the Table

Ruddy boldly proclaimed that Newsmax is the "No. 4 cable news channel in the United States right behind CNN." Nielsen has confirmed this noting their consistent fourth place. But let us not get carried away. While Newsmax has 309,000 primetime viewers Fox News commands a staggering 3.1 million. A respectable showing but still a long road lies ahead. 'Short cuts make long delays' as they say.

A Settlement and a Saying

Interestingly as Newsmax's popularity has grown so too has its negotiating power with cable providers. From relying solely on advertising they now receive licensing fees. It is also worth noting though that they settled a dispute for a hefty $40 million over false claims regarding the 2020 election. And what of their political leaning? Ruddy claims they are 'conservative with an independent news mission' but actions speak louder than words. A conversation with Trump even yielded the saying: 'A rising Trump lifts all boats!' One must wonder if the boats include those heading towards the Grey Havens...

Soaring Stocks and Uncertain Futures

Newsmax's stock soared to a peak of over 700% on Monday closing at $83.51! A dazzling display indeed. But as Gandalf the Grey said “All that is gold does not glitter not all those who wander are lost.” One is left to ponder if this initial success is merely a flash in the pan or the beginning of a long and prosperous reign. Only time will tell if Newsmax can truly challenge the established powers or if like many before them they will fade into the mists of forgotten news cycles. For now we can only watch and wait... and perhaps invest a small amount just in case.