Newsmax Inc. (NMAX) continued its volatile trading pattern with a 5.02% after-hours plunge on Thursday, following a tumultuous week since its initial public offering (IPO). The conservative media outlet's stock has been on a wild ride, experiencing extreme price swings that have left investors and market analysts stunned.
The after-hours decline comes on the heels of a dramatic sell-off during regular trading hours. Newsmax shares had already fallen 19.82% in pre-market trading and a staggering 77.5% during Wednesday's session. This sharp downturn followed an unprecedented 2,230% gain in the stock's first two days of trading after debuting at $10 per share on Monday.
Market observers attribute the ongoing sell-off to a combination of factors, including profit-taking, reassessment of the company's fundamentals, and growing skepticism about its long-term prospects. Despite the initial euphoria that saw the stock price soar to as high as $233, investors are now reevaluating Newsmax's value in light of its reported $171 million revenue last year. Additionally, ongoing litigation related to the company's 2020 election coverage has raised concerns about potential financial impacts. As the dust settles from the IPO frenzy, it appears that investors are adopting a more cautious approach, leading to continued downward pressure on the stock price.
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