Trump-friendly media company Newsmax soars after IPO
Trump trades have given back much of their collective postelection bump in recent weeks, with big beneficiaries from the president’s 2024 victory like Tesla, Palantir, and Trump Media down sharply since the market peaked back in February.
But there’s still appetite out there for Trump-adjacent trading vehicles.
Case in point: the debut of Trump-friendly media company Newsmax, which went vertical once the stock opened shortly before 11 a.m. ET. At times, the stock was up roughly 600% compared to the $10 it priced at.
At current levels, this money-losing company — it was $55 million in the red through the first six months of 2024 — would have a market cap of somewhere in the neighborhood of $6 billion.
That means the market is valuing Newsmax at about 44x full-year 2023 revenues, the last year for which full-year data is available. The S&P 600 small-cap index as a whole has a price-to-sales valuation of less than 1x last year’s sales.
Such wild valuations for Trump-related trades are something of a feature of the genre.
Case in point: the debut of Trump-friendly media company Newsmax, which went vertical once the stock opened shortly before 11 a.m. ET. At times, the stock was up roughly 600% compared to the $10 it priced at.
At current levels, this money-losing company — it was $55 million in the red through the first six months of 2024 — would have a market cap of somewhere in the neighborhood of $6 billion.
That means the market is valuing Newsmax at about 44x full-year 2023 revenues, the last year for which full-year data is available. The S&P 600 small-cap index as a whole has a price-to-sales valuation of less than 1x last year’s sales.
Such wild valuations for Trump-related trades are something of a feature of the genre.
