Fox News already has competition on Wall Street. Newsmax, a television chain that has become famous for being ‘more Trumpist than Fox’, the traditional American right chain, has shot in his IPO. The company has multiplied its value in just two days, exceeding 18,000 million contributions and turning its founder into a Milmillonario.
The firm went over 14 dollars per share and He played 190 on Tuesday, before stabilizing at 140. An stratospheric increase that points to the enthusiasm of investors for the actions closest to Donald Trump and, particularly, of his most loyal followers.
The chain gained relevance during the 2020 elections, when it was the main speaker of the theories of the conspiracy with which Trump claimed that he had not really lost the elections against Joe Biden. The president turned his back on Fox, who showed doubts about whether to encourage those allegations without foundation, and hugged Newsmax in those months. His rupture did not last long and Trump re -led to the Fox for his 2024 campaign, but opened a door to the new competitor.
Newsmax has become the fourth most seen cable news chain in the US, after Fox, MSNBC and CNN. Despite this, the distance between Newsmax and its main rival remains gigantic: Rupert Murdoch’s television has 10 times more spectators than Newsmaxand earned 3,000 million dollars last year, compared to losses of 72 million of the young competitor. But the distance is not noticeable in its total capitalization in the stock market: 24.5 billion for Fox, 18,000 for Newsmax.
Both companies do have one thing in common: their results have been beaten in recent years by Smartmatic’s demands, a company that manufactures voting machines, to which Trump allies accused without evidence in both chains of having manipulated the results of 2020. Newsmax had to pay 40 million dollars, while Fox is facing a claim of 2.7 billion in court By defame to the firm. In that case, being the smallest of the two came out cheap to Newsmax. Investors are now betting that, in an environment of polarization, being the most radical of the couple can give a lot of money in the long term.
The Bloomberg agency, however, compares it with ‘Meme Actions’ And he warns that his bad quarterly results should be an alert signal. Perhaps the best comparison is with Trump Media, the firm that manages the president’s social network, Truth, which came to be sold for 100 dollars and now quotes around 20.
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