Newsmax Inc. (NMAX) stock continued its dramatic roller-coaster ride in pre-market trading on Thursday, plummeting 19.82% as investors reassess the company's value following its recent initial public offering (IPO). This latest decline comes on the heels of a staggering 77.5% drop during Wednesday's regular trading session, which itself followed an unprecedented 2,230% gain in the stock's first two days of trading.

The conservative media outlet, which went public on Monday at $10 per share, has been experiencing extreme volatility that has caught the attention of investors and market analysts alike. Newsmax's share price had skyrocketed to as high as $233 by Tuesday's close, drawing comparisons to the meme stock phenomenon and raising concerns about its inflated valuation. However, reality seems to be setting in as traders reevaluate their positions.

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, Newsmax reported only $171 million in revenue last year, a figure that appears inconsistent with the multi-billion-dollar market capitalization it briefly achieved. Additionally, the company faces ongoing litigation related to its 2020 election coverage, which could potentially impact its financial outlook. As the dust settles from the IPO frenzy, investors appear to be taking a more cautious approach, leading to continued downward pressure on the stock price in pre-market trading.