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Highlights

  • Newsmax marked significant surge on Tuesday, extending Monday’s 14% rally fueled by meme-stock enthusiasm.

  • The stock is rebounding after last week’s sell-off, triggered by concerns over Dominion Voting Systems' defamation lawsuit.

  • Viewership surge drives optimism, with Nielsen data showing over 1,000% growth in prime-time ratings in Q1.

Newsmax (NYSE:NMAX) shares surged once more on Tuesday, with intraday highs reaching nearly 19%. This marks the second consecutive day of upside momentum for the newly public media company, following a 14% spike on Monday.

The gains appear to be largely fueled by retail investor interest, as Newsmax becomes the latest name to join the ranks of meme-stock favorites. While the company has had its share of headline-worthy updates, including legal issues and viewership milestones, much of its market action is being driven more by sentiment than fundamentals.

Last week, Newsmax stock plunged after reports that Dominion Voting Systems’ defamation lawsuit against the company would proceed to a jury trial. The pullback came after a breathtaking rally that saw the stock soar over 2,200% from its IPO price in late March. Even after multiple rounds of volatility, the stock remains up approximately 180% from its initial $10 listing price.

Newsmax added fuel to the fire with a recent Nielsen ratings report showing massive audience growth. The company claimed a 690% increase in total day viewership and a 1,027% jump during prime-time hours in the first quarter. According to Newsmax, these numbers made it the fifth most-watched cable network in the U.S.