Newsmax Stock Falls Below IPO Price, Valuation Concerns Persist
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 24 2025
0mins
Source: Yahoo Finance
- Stock Decline: Newsmax's stock has fallen to just over $9 per share since its IPO on March 31, 2025, down significantly from its initial price of $83.51, indicating market concerns over its profitability.
- Valuation Issues: 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 based on projected revenue of $206 million next year, which is substantially higher than peers like Fox Corp and Sinclair.
- Bleak Profit Outlook: Analysts forecast that Newsmax will only achieve near-breakeven profitability by 2027, with an expected EPS of just $0.12 in 2028, suggesting significant challenges in improving profitability.
- Acquisition Potential: While Newsmax could leverage its high valuation for stock-based acquisitions, the lack of a clear growth strategy raises investor caution regarding its future trajectory.
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.
