During its IPO at the New York Stock Exchange, Newsmax's logo was displayed. Viewers loyal to Newsmax who invested $10 per share in the company last year are now seeing significant returns, with the shares currently valued at nearly $200 each.

The IPO has marked a significant success for the pro-Trump news channel, which has lagged behind Fox News in the media industry. CEO Chris Ruddy, whose wealth on paper has now reached billionaire status due to the stock's remarkable performance, emphasized that investors supporting Newsmax through buying its stock signals a vote of confidence in the channel's values and growth potential.

With a sudden influx of capital from the IPO, Newsmax is poised for expansion. However, some media outlets caution against the stock's rapid rise, dubbing it a "meme stock." Although the stock surged to $233 on Tuesday from $83.51 on Monday, it declined in after-hours trading, and experts anticipate a correction in its value.

Investors are advised to be prudent as the cable news industry faces challenges in terms of growth. Newsmax's financial situation is concerning, compounded by impending legal issues related to defamation lawsuits from the 2020 election. The channel sought to raise funds through the IPO to address these legal challenges, particularly lawsuits filed by Dominion Voting Systems and Smartmatic over claims of voter fraud perpetuated by right-wing media outlets, including Newsmax, during the 2020 election.

Newsmax's IPO strategy, anchored on engaging viewers to invest, was met with skepticism initially given the network's modest size, low TV ratings, and previous financial losses. Despite doubts, the IPO has so far shown promise for Newsmax, although uncertainties persist about the channel's long-term financial sustainability.