Many factors can cause a stock to surge following its IPO. However, one catalyst tends to drive its long-term performance: profitability. A company needs to make money to support its operations and growth over the long term. If a company continues to lose money, its stock will likely lose value.

Newsmax stock price crashed 77% on Wednesday after a wild post-IPO rally. Its low share float heightens the stock's volatility.

Newsmax’s wild ride continues. This time, though, the rollercoaster went down.Shares of the media company finished Wednesday's session off 77% at under $53 apiece. plummeting in their third session as a publicly traded company.

Newsmax lost $55 million in the first half of last year. But its stock has surged this week as shares in the company traded on the public market for the first time.

Newsmax, the conservative news outlet, saw its shares hike over 500% in early trading on its first day on the New York Stock Exchange