Another right-wing media company that loses money has exploded in value after going public.

Cable news outlet Newsmax posted staggering gains since its IPO debut on Monday, drawing comparisons to Trump Media & Technology Group. Both companies have high valuations despite losing money.

Newsmax shares closed 179% higher on Tuesday at $233 apiece, representing a more than 2,000% increase from their $10 debut on Monday. The surge has made Chris Ruddy, Newsmax's founder and CEO, a paper billionaire. However, the shares were down about 25% in premarket trading on Wednesday.

Newsmax's stock surge sent its market capitalization to nearly $30 billion — meaning the company is now more valuable than many of its media peers, including Trump Media and even Fox Corp .

Retail investors have rushed into Newsmax on tailwinds of President Donald Trump's return to the White House.

Newsmax sold 7.5 million shares in its IPO and the company quickly reached meme stock status. About 11 million shares changed hands on Tuesday.

"There's not a lot of stock to trade in the market relative to the market cap, so it can be pushed around," Paul Hickey, the cofounder of Bespoke Investment Group, told Business Insider's Matthew Fox.

Despite the strong interest in Newsmax shares, the company has been in the red. It posted widening losses of $72.2 million in 2024, compared to a loss of $41.8 million in 2023. Annual revenue grew from $135.3 million in 2023 to $171 million in 2024.

Trump Media, meanwhile, lost $400.9 million in 2024, compared with a loss of $58.2 million in 2023.

Newsmax's stunning debut echoes Trump Media's debut on Nasdaq in March 2024, when the stock surged as much as 59% on its first day of trade.

Trump Media had merged with Digital World Acquisition Corp, a special-purpose acquisition company, to go public. Shares of the SPAC closed at $49.95 apiece before it started trading as Trump Media.

Since then, Trump Media's stock has been on a wild ride, hitting a high of $79.38 on March 26, 2024 — its first day of trade — and a low of $11.75 per share on September 24.

Trump Media shares closed 3.7% higher at $20.26 apiece on Tuesday. They are down 40.6% so far this year.

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