Financial losses and legal issues make Newsmax a risky investment.

The announcement that billionaire Patrick Soon-Shiong plans to take the Los Angeles Times public was met with a mix of panic ...

With $75 million in gross proceeds from the IPO and $225 million raised from a prior private placement of preferred stock to accredited investors, Newsmax leadership has outlined plans to fuel growth.

Newsmax has a history of producing losses, however. Last year, the company lost $72.2 million compared to losses of $30.4 million and $41.8 million in 2022 and 2023, respectively.

Newsmax's stock took flight immediately following its IPO, soaring as much as 2,230% by Tuesday. The limited number of shares sold, roughly 7.5 million, contributed to the surge.

Newsmax also broke records in Q1 2025, and for all of 2024, becoming No. 1 for all U.S. news networks (broadcast and cable) for per-follower social interaction rate on Facebook, X and Instagram.

Newsmax is only 24.2% above its IPO price as of Friday. Shares of digital health firm Omada Health Inc. finished last week down 10% from its IPO price despite debuting up 21.1% on June 6.

Newsmax (NYSE: NMAX) completed its IPO at the end of March. In the company's short life as a public company, the share price has been on a wild ride. Where to invest $1,000 right now?

With $75 million in gross proceeds from the IPO and $225 million raised from a prior private placement of preferred stock to accredited investors, Newsmax leadership has outlined plans to fuel growth.

BOCA RATON, FL / ACCESS Newswire / May 15, 2025 / Newsmax Inc. (NYSE:NMAX) (“Newsmax” or the “Company”) today announced its financial results for the first quarter ended March 31, 2025.