US news channel Newsmax has seen its stock price surge by more than 2,200% since its debut in New York, making it one of the most valuable media companies in the world. The company’s shares were originally priced at $10 each and have now reached $233, valuing the company at almost $30 billion.
Newsmax was founded in 1998 as an online platform and launched its cable news channel in 2014. Its founder and CEO Christopher Ruddy has seen his net worth increase to over $9 billion due to the surge in shares.
Analysts attribute the gain to retail investors, who are drawn to meme stocks like GameStop, which were popular during the pandemic. Newsmax’s endorsement by US President Donald Trump in 2020 also boosted its ratings and contributed to the recent price surge.
The company has faced controversy in the past, including a $40 million settlement over false claims about voting machine manufacturer Smartmatic. Despite this, Newsmax is part of a growing trend of conservative media companies selling shares on the stock market.
Source: https://www.bbc.com/news/articles/c7871277kjgo