Newsmax Inc. (NMAX) shares soared 5.71% in after-hours trading on Wednesday, extending the stock's rollercoaster ride since its initial public offering earlier this week. The conservative media outlet has experienced extreme price swings that have drawn comparisons to meme stock trading patterns.
The after-hours surge comes on the heels of a dramatic pullback during Wednesday's regular session, where Newsmax shares plunged over 60% from the previous day's close. This decline followed an astonishing two-day rally that saw the stock skyrocket more than 2,200% from its IPO price of $10 per share.
Analysts and market observers have expressed concerns about Newsmax's lofty valuation relative to its fundamentals. The company's market capitalization briefly surpassed that of media giant Fox Corp., despite Newsmax reporting only $156 million in trailing 12-month sales. This discrepancy has led some experts to caution that the stock may be significantly overvalued.
The extreme volatility in Newsmax shares has been attributed to several factors, including retail investor enthusiasm, the company's conservative media positioning, and its ties to former President Donald Trump. As the stock continues to experience wild swings, investors are advised to exercise caution and carefully consider the risks associated with such volatile trading patterns.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.