Newsmax Shares Plummet to $9 Post-IPO, Valuation Concerns Persist
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 24 2025
0mins
Should l Buy NMAX?
Source: NASDAQ.COM
- Price Decline: Since its IPO in March 2025, Newsmax's stock has plummeted from an initial $83.51 to just $9, reflecting market concerns over its profitability and growth prospects, which has led to diminished investor confidence.
- Valuation Imbalance: With a market cap of $1.18 billion and an enterprise value of approximately $1.05 billion, Newsmax's forward EV/sales ratio stands at 5.1, significantly higher than competitors like Fox Corp at 2 and Sinclair at 1.45, indicating a persistent overvaluation.
- Bleak Profit Outlook: Analysts project revenue of $206 million for next year with a modest growth rate of 13.8%, and expect the company to reach near breakeven profitability only by 2027, with earnings per share of just $0.12 in 2028, highlighting long-term uncertainty in profitability.
- Limited Acquisition Potential: While Newsmax could leverage its high valuation for stock-based acquisitions, the lack of a clear strategic direction raises concerns; without rapid profitability, the stock may face further downward pressure, suggesting investors should remain cautious.
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Analyst Views on NMAX
Wall Street analysts forecast NMAX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NMAX is 20.50 USD with a low forecast of 20.00 USD and a high forecast of 21.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 6.070
Low
20.00
Averages
20.50
High
21.00
Current: 6.070
Low
20.00
Averages
20.50
High
21.00
About NMAX
Newsmax, Inc. is a holding company that owns 100% of the interests of its operating company, Newsmax Media, Inc. (Newsmax Media). Newsmax Media is a television broadcaster and multi-platform content publisher. Its Broadcast segment of the Company’s business produces and licenses news, business news and lifestyle content for distribution primarily through multichannel video programming distributors (MVPDs), including cable television systems, direct broadcast satellite operators and telecommunication companies, primarily in the United States. The Digital segment includes online advertising, including online display, email advertising, other online placements and print advertisements, subscriptions, including a collection of specialized health and financial newsletters, Newsmax Magazine and four online membership programs, and e-commerce, through its subsidiaries that sell nutraceuticals and nonfiction books on political, financial and health-related topics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant Impact: As a founding analyst for Newsmax, Michael Reagan played a crucial role in establishing the network as one of the nation's emerging and influential media platforms, which regularly reaches over 40 million Americans through its media properties.
- Media Influence: Newsmax, recognized as the fourth highest-rated news network, is available on all major pay TV providers and boasts over 20 million followers across its website and social media platforms, highlighting its significant position among U.S. news brands.
- Legacy Continuation: Michael Reagan's passing represents a profound loss for his family and American patriotism, and Newsmax will continue to honor his contributions and influence in the media industry.
See More
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- Listing Milestone: Versant Media Group began trading on Nasdaq on July 21, 2025, achieving a market capitalization of $6.8 billion, marking a significant moment as an independent media company and likely attracting investor interest.
- Stock Price Volatility: The stock opened at $55 per share on its debut but has since fallen to $46.65, reflecting market concerns over the challenges facing the traditional media industry amid a shift to streaming.
- Financial Performance: Versant reported $7.1 billion in revenue for 2024, down from $7.4 billion in 2023, indicating pressure on traditional TV operations as consumers move away from cable bundles.
- Debt Structure: The company plans to issue $2.75 billion in new senior secured debt to fund a $2.25 billion cash distribution to Comcast and bolster its balance sheet with an additional $500 million, with rating agencies maintaining a stable outlook despite the junk status of its debt.
See More
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- Public Listing: Versant Media debuted on Nasdaq on Monday with a market capitalization of $6.8 billion, marking its transition to an independent public media company following its spin-off from Comcast, which is expected to enhance its competitive position in the market.
- Stock Price Fluctuation: The stock opened at $55 per share during its initial trading but has since fallen to $46.65 as of last Friday, reflecting market concerns regarding the challenges faced by traditional media companies.
- Financial Performance: In 2024, Versant reported revenues of $7.1 billion, down from $7.4 billion in 2023, indicating pressure on traditional television operations as consumers shift towards streaming services.
- Debt Structure: Versant plans to issue $2.75 billion in new senior secured debt to fund a $2.25 billion cash distribution to Comcast and bolster its balance sheet, with credit ratings agencies assigning a BB rating, placing it in junk territory, yet its low debt levels are viewed as a significant advantage.
See More
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- Competitive Landscape: Fox Corp's market cap of nearly $31 billion significantly surpasses Newsmax's $1.1 billion, indicating Fox's strong competitive position in conservative news, expected to maintain its lead by the end of the decade.
- Financial Performance: Newsmax reported a net loss of $4.1 million in Q3 2025, while Fox achieved a profit of $690 million in the same quarter, highlighting a significant disparity in profitability that could affect investor confidence.
- Growth Potential: Mirum Pharmaceuticals experienced a 47% year-over-year revenue increase in Q3, contrasting with Newsmax's low single-digit revenue growth, suggesting that Mirum's rapid development in the pharmaceutical market may attract more investor interest.
- Advertising Market Outlook: The Trade Desk, with a market cap of $18.6 billion, is expected to surpass Newsmax in the next five years, demonstrating the strong growth potential of advertising technology companies, which may offer better returns for investors.
See More
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- User Base Expansion: Newsmax's recent expansion into Europe and the Middle East is expected to increase its audience beyond the 50 million Americans currently engaged, enhancing its international market presence.
- Competitive Pressure: With a market cap of $1.1 billion, Newsmax faces significant competition from Fox Corp, which boasts a market cap of nearly $31 billion, indicating potential challenges for Newsmax's future growth prospects.
- Financial Performance Comparison: In Q3 2025, Newsmax reported a net loss of $4.1 million, while Fox Corp achieved a profit of $690 million, highlighting the financial challenges Newsmax faces in achieving profitability.
- Advertising Revenue Dependency: Newsmax relies heavily on advertising revenue, but The Trade Desk, with a market cap of $18.6 billion and a gross margin of 78.81%, demonstrates strong competitive advantages in the advertising technology sector.
See More
Newsmax Shares Plummet to $9 Post-IPO, Valuation Concerns Persist
- IPO Performance: Newsmax went public on March 31, 2025, via Regulation A+, with shares surging over eightfold on the first day to $83.51 and rising another 179% the next day, but now trades at $9, indicating severe market valuation concerns.
- Valuation Imbalance: With a current market cap of $1.1 billion and an enterprise value of approximately $1.05 billion, Newsmax's projected revenue of $206 million next year results in a forward EV/sales ratio of 5.1, significantly higher than peers like Fox Corp and Sinclair, which trade at 2 and 1.45, respectively.
- Bleak Profit Outlook: Although Newsmax is a smaller, faster-growing company, its projected growth rate for next year is only 13.8%, and analysts expect it to reach near breakeven profitability by 2027, with earnings per share of just $0.12 in 2028, highlighting long-term profitability uncertainties.
- Limited Acquisition Potential: While Newsmax could leverage its high stock price for stock-based acquisitions of smaller, profitable competitors, there are currently no clear plans, and investors should remain cautious until valuations become more reasonable.
See More
