2,550% Returns In 2 Days: Before Trump's Tariff Turbulence, His Media Stock Makes Investors Richer

Trump Stock: Donald Trump will take center stage on Wednesday, as countries, investors, markets, and the common man await his decision on tariffs. His plans to increase employment, growth, and pump up the world's largest economy is packed with turbulence such as the potential of recession, expectation of temporary economic pain, and the threat of riling up a global trade war. All eyes are on Trump and his tariffs! But before big announcements on April 2nd, there is one stock that is backed by the 47th President of the USA himself. This stock, engaged in the media sector, has made investors richer, even millionaires and billionaires, in just a matter of two days.

This media outlet is endorsed by Trump and was even promoted during his first tenure as US president.

Who is it? Drum roll! It is a conservative TV company, Newsmax!

Newsmax listed on March 31st at $14 apiece, which is at a premium from its IPO issue price of $10 apiece. On its listing day alone, the stock had skyrocketed by a mind-boggling 496.5% to hit that day's high of $83.51 apiece.

The rally was only going to get stronger by the second day, before Trump's big so-called historic moment on April 2.

On April 1st, Newsmax surged by 217.32% to hit its new all-time high of $265 apiece on NYSE. From the IPO price, Newsmax skyrocketed to a whopping 2,550%.

Newsmax's stellar performance in just two days has made its own investors billionaires. For instance, as of Tuesday, Christopher Ruddy, who is the founder of Newsmax, entered the billionaires list when his shareholding became worth over $9 billion in Newsmax. He holds approximately 39.2 million Class A shares of Newsmax, along with 81.4% of voting stock.

Another key investor is Interactive Brokers founder and billionaire Thomas Peterffy who holds 23 million shares in Newsmax, making him the second largest shareholder. His shares are worth over $5 billion as of Newsmax's performance on April 1.

Because of this strong performance after the IPO, Newsmax's valuation is higher than Fox Corp. Newsmax's valuation is around $30 billion, while its biggest rival Fox's valuation is about $23.4 billion as of Tuesday.

In a report cited by Yahoo Finance, Ruddy said, "This incredibly successful offering, combined with our previous Preferred Offering, provides us with the capital and financial freedom to accelerate our growth initiatives, expand our programming, and further enhance our digital presence." Ruddy is a media mogul and a friend of Trump who incorporated the company in 1998.

The news outlet raised about $75 million in its IPO phase, at a share price of $10.

Since its founding in 1998 by award-winning journalist Christopher Ruddy, Newsmax has become a go-to place for Americans seeking real news that keeps them informed while helping to improve their lives.

Newsmax became a cable TV network in 2014, three years before Trump took his first presidential role at the White House in 2017.

What Should Investors Do?

As per the TipRanks report, analysts warn the excitement may be short-lived. Dual-class governance, concentrated ownership, and ongoing net losses could limit institutional interest. The post-IPO float remains tight, which may continue to fuel volatility.

About Newsmax:

The Company's Newsmax network is now the 4th highest-rated cable news channel. Along with its streaming channel Newsmax2, the Newsmax App, Newsmax.com - Breaking news from around the globe and other platforms, the Company reaches more than 40 million Americans regularly. Close to 20 million people follow Newsmax on social media platforms like X, Facebook, LinkedIn, and Truth Social.

As per the main website, Newsmax champions a free press, one that provides Americans with balanced coverage, diverse viewpoints, and honest debates on the issues affecting our lives. A 2024 Reuters Institute study found that Newsmax was one of the top 12 news brands in the U.S. and Forbes calls Newsmax "a news powerhouse."

Newsmax Media, Inc., based in Boca Raton, Fla., with offices in New York City and Washington, D.C., is a privately held company headed by its CEO and majority shareholder Christopher Ruddy.