Why Newsmax Stock Is Plummeting Today

Newsmax (NYSE: NMAX) stock is getting hit with huge sell-offs in Monday's trading. The media company's share price was down 16.5% as of 3:30 p.m. ET. The S&P 500 was down 3.1% at the same point in the session.

Newsmax's valuation is falling rapidly in the face of surging bearish sentiment across the stock market. The stock had risen 11.6% across last week's trading, but today's sell-offs have now more than wiped out those gains.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Newsmax stock sinks as investors react to macro risk

President Donald Trump characterized Federal Reserve Chair Jerome Powell as a "major loser" today and called on the U.S. central bank to implement preemptive interest rate cuts in order to prevent the economy from slowing. The Trump administration is looking into whether it can oust Powell from his position as the central bank's leader before his term ends in 2026.

Trump's comments about Powell and the Federal Reserve come amid escalations in the trade war between the U.S. and China, and investors are reacting to the volatile macroeconomic picture by selling stocks today. The company had seen its valuation soar in conjunction with meme-stock trading, so it's not surprising that Newsmax is seeing an outsize sell-off today.

What's next for Newsmax?

Despite still being up roughly 110% from the $10-per-share initial public offering (IPO) listing price last month, Newsmax stock is now down 74% from market close on the day of its debut. On the other hand, the company isn't profitable and is valued at approximately 16 times the $171 million in sales it recorded last year. The news network did manage to increase its revenue 26% annually in 2024, but the company's current valuation profile still opens the door for substantial downside risk.

Should you invest $1,000 in Newsmax right now?

Before you buy stock in Newsmax, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Newsmax wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $524,747!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $622,041!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 153% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.