Newsmax’s stock price surged 2200% in its first two days of trading.

Newsmax, a conservative television news network in the United States, has seen a rare skyrocketing trend in media stock since its initial public offering (IPO) on the New York Stock Exchange on Monday (March 31st). In just two days, its stock price surged by over 2200%, surpassing the market value of Fox Corporation.

On Tuesday (April 1st), Newsmax’s stock price continued its upward trend, soaring by nearly 180% to close at $233.

During the IPO, Newsmax debuted at $10 per share, and on its first day of public trading, it surged by 735%, triggering multiple trading halts. This surge boosted the company’s market value by a staggering $19.2 billion, with a trading volume exceeding 10 million shares.

This surge has positioned Newsmax’s current market value close to $30 billion, outstripping competitors like Fox Corporation, the parent company of Fox News, Warner Bros Discovery, and Paramount Global.

The sharp rise in Newsmax’s stock has significantly increased the wealth of its founder and major shareholders.

According to the Bloomberg Billionaires Index, Christopher Ruddy, the company’s founder and CEO, holds almost a third of the shares with a net worth exceeding $9 billion, propelling him into the ranks of the richest Americans. Thomas Peterffy, the founder of Interactive Brokers Group Inc., is the second-largest shareholder with shares valued at $5.4 billion.

Ruddy’s wealth now surpasses that of well-known billionaires such as Bill Ackman and Mark Cuban.

Formerly a journalist for the New York Post, Ruddy founded Newsmax in 1998 as a digital media platform, before transforming it into a cable television news network in 2014.

Newsmax is considered a friendly media outlet to former U.S. President Donald Trump and garnered his support during his first term in the White House. The network has continued to enjoy popularity among conservative viewers during Trump’s second term. According to Nielsen data, it ranks as the fourth most-watched cable news channel after Fox News, MSNBC, and CNN.

However, some analysts point out that retail investors drove the stock’s surge, drawing comparisons to the GameStop stock frenzy of 2020 and 2021, reminiscent of the meme stock craze.

On Tuesday, Newsmax sent an email to investors highlighting the stock’s surge on the opening day. Ruddy stated, “Investors are buying Newsmax’s stock in large numbers because they like us, value us, and want us to continue to grow.”

He further added, “This incredible successful offering, along with our previous preferred stock issuance, has provided us with the financial resources and freedom to accelerate our development plans, expand our program offerings, and further bolster our digital business.”