From Steel to Screens: Right-Wing Newsmax Surges Past U.S. Steel in Market Value Shake-Up

Edited by: Fern Sidman

Newsmax, the right-wing cable news outlet long considered a scrappy outsider in the media world, has become Wall Street’s latest symbol of speculative frenzy—if only for a brief, breathtaking moment. As reported by The New York Times, the company’s first week on the New York Stock Exchange has unfolded like a financial thriller, complete with jaw-dropping highs, stomach-turning lows, and a swirl of political subtext.

The stock’s dramatic trajectory—a surge from its opening to an eye-popping peak of $279 per share before plummeting to $52 just days later—has turned a niche conservative media company into a case study of how political sentiment, hype, and market forces can collide in unpredictable ways.

Founded in 1998 by Christopher Ruddy, a former New York Post reporter with deep ties to Donald Trump’s inner circle, Newsmax began as a longshot challenger to Fox News, CNN, and MSNBC, as was reported by The New York Times. Today, it offers a robust lineup of right-leaning programming, hosts such as Greg Kelly and Michael Savage, a subscription-based digital service (Newsmax+), and even a profitable sideline in health supplements—what the company refers to as its “nutraceuticals business.”

Though never a ratings juggernaut, Newsmax carved out a fervent viewership, especially during and after the first term of Trump’s presidency. Its alignment with Trump’s messaging and voter base made it a rising star among conservatives seeking alternatives to Fox, especially after that network acknowledged President Biden’s 2020 election victory—a move that pushed many Trump loyalists elsewhere.

As The New York Times report explained, Newsmax’s public listing this week was the culmination of years of expansion under Ruddy’s leadership. But the stock’s behavior defied even the most optimistic expectations.

Newsmax’s stock market debut was supercharged by investor fervor similar to that seen with Trump Media & Technology Group, the parent company of Truth Social. As the report in The New York Times noted, investors with political or ideological motives—particularly those drawn to pro-Trump ventures—have injected large amounts of capital into these companies, seemingly unconcerned with traditional financial metrics.

That pattern played out spectacularly this week: Newsmax’s share price briefly hit $279, momentarily giving the company a market value exceeding $20 billion—putting it ahead of historic industrial giants like U.S. Steel, which is currently valued at about $9.5 billion.

But just as quickly as it soared, Newsmax’s stock crashed back to earth. By Wednesday, it had fallen to $52 per share, slicing the company’s valuation to around $5 billion—still significant, but a sharp reminder of how quickly speculative bubbles can deflate.

In an interview with The New York Times, Ruddy remained calm amid the volatility, saying he was focused on building the business rather than following stock tickers.

“Whether the stock price goes to $1,000 or it goes to $10, I have to do the same thing: Continue building Newsmax and do my job,” Ruddy said.

And there’s no denying Ruddy’s firm control over the company. According to filings reviewed by The New York Times, Ruddy and his affiliated entities hold 81.4 percent of the company’s voting power—making him a dominant force in any future direction Newsmax takes, whether it’s toward sustained growth or further turbulence.

Despite its high-profile market debut and politically energized following, Newsmax is not yet a profitable enterprise. As The New York Times reported, the company earned $79.8 million in revenue in the first half of 2024, but it lost $55.5 million during that same period.

The company has warned investors in its public filings that ongoing structural shifts in the TV industry—such as the cord-cutting trend and streaming competition—could impair its long-term ability to generate consistent profits.

These warning signs haven’t slowed investor enthusiasm entirely, but they underscore the stark divide between valuation and viability. Whether Newsmax can sustain itself in an industry beset by technological disruption and fierce competition remains a looming question.

When measured against the undisputed titan of conservative cable news—Fox News—Newsmax remains a small player. According to viewership data obtained by The New York Times from Nielsen, Newsmax averaged just 305,000 prime-time viewers in the first quarter of 2025. In contrast, Fox News drew three million, a nearly tenfold advantage that underscores Fox’s entrenched dominance over right-wing cable audiences.

Despite its modest reach, Newsmax has managed to maintain a presence on major U.S. cable and satellite systems, including DirecTV, Dish Network, Comcast, and Verizon. This distribution breadth is crucial for advertising revenue. However, as The New York Times reported, the reason Newsmax is carried so widely is because it charges distributors substantially lower carriage fees than many of its competitors.

Unlike CNN or MSNBC, Newsmax has not historically commanded premium fees from cable and satellite companies for the rights to carry its channel. This strategy has helped the company gain broad distribution—vital for visibility—but it has also placed Newsmax at a serious financial disadvantage. Channels like CNN are able to generate significant revenue through their higher per-subscriber fees, giving them a financial edge in content production, staffing, and infrastructure.

Still, Newsmax founder Christopher Ruddy insists that change is coming. Speaking to The New York Times, Ruddy said that the company is now renegotiating its distribution contracts and expects its per-subscriber fees to double or even triple in the near future.

“Right now, we’re getting a fraction of what CNN has,” Ruddy said. “But we have a lot of potential.”

Whether those increases will be tolerated by providers or consumers—especially as many Americans continue to cut the cord—remains to be seen.

Even as Newsmax courts investors and renegotiates contracts, it is fighting high-stakes legal battles that could reshape its future. Like other right-wing networks that aired false claims about the 2020 election, Newsmax was sued by Dominion Voting Systems and Smartmatic, two voting machine companies that were frequently implicated in conspiracy theories about election fraud.

The New York Times reported that Newsmax settled with Smartmatic last year for $40 million. The agreement, which is set to be paid off by June, also includes an unusual provision: Smartmatic has the option to purchase a block of Newsmax preferred stock at $5,000 per share. This clause raises questions about the level of influence Smartmatic could eventually have in Newsmax’s corporate structure.

But while one legal front is closed, the other remains wide open. Dominion’s lawsuit—seeking a staggering $1.6 billion in damages—is still active, and a trial is scheduled for later this year. In a financial filing obtained by The New York Times, Newsmax acknowledged that the lawsuit could have a “material adverse effect” on its financial health.

Given the scale of the damages sought and the precedent set by Dominion’s high-profile settlement with Fox News, this is no minor risk. The case looms as a possible existential threat, especially for a company still in the red and only recently exposed to the unpredictability of public markets.

With its energetic but relatively small viewership, legal headwinds, and a turbulent business model, Newsmax faces the challenge of proving that it can evolve from a politically energized niche broadcaster into a sustainable, scalable media powerhouse.

Its recent public market listing triggered intense investor interest, part of a broader pattern that has seen companies with connections to Donald Trump—like Trump Media & Technology Group—draw valuations far exceeding their financial fundamentals. As The New York Times report noted, this enthusiasm is often rooted more in political identity than profitability.

But public markets can be fickle, and enthusiasm alone won’t shield Newsmax from courtroom outcomes, changing industry economics, or competition from both traditional media giants and new digital-first challengers.

What Newsmax has achieved since its founding in 1998 is not insignificant. Under Chris Ruddy’s leadership, it has transformed from a media curiosity into a player with national reach, direct access to conservative audiences, and a prominent position in the current political-media ecosystem.