Newsmax Shares Plummet to $9 Post-IPO, Valuation Concerns Persist
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 24 2025
0mins
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.
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 21.00 USD with a low forecast of 20.00 USD and a high forecast of 22.00 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: 7.780
Low
20.00
Averages
21.00
High
22.00
Current: 7.780
Low
20.00
Averages
21.00
High
22.00
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.
