Newsmax Inc. (NMAX) stock continued its tumultuous post-IPO journey, plummeting 9.03% in pre-market trading on Friday. This latest decline follows a series of dramatic price swings that have left investors and market analysts stunned since the conservative media outlet's market debut earlier this week.
The pre-market plunge comes on the heels of a 5.02% drop in after-hours trading on Thursday, which itself followed a staggering 77.5% decline during Wednesday's regular session. This sharp downturn is in stark contrast to the stock's initial performance, which saw an unprecedented 2,230% gain in its first two days of trading after debuting at $10 per share on Monday, briefly reaching as high as $233.
Market observers attribute the ongoing sell-off to a combination of factors. These include profit-taking by early investors, a critical reassessment of the company's fundamentals, and growing skepticism about its long-term prospects. Despite the initial euphoria, investors are now reevaluating Newsmax's value in light of its reported $171 million revenue last year, which appears inconsistent with the multi-billion-dollar market capitalization it briefly achieved. Additionally, ongoing litigation related to the company's 2020 election coverage has raised concerns about potential financial impacts, further contributing to the downward pressure on the stock price.
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