Prediction: 1 Growth Stock That Will Be Worth More Than Newsmax 1 Year From Now

On March 31, the conservative media company Newsmax (NMAX), often positioned as an alternative to Fox News (FOX) and other mainstream media networks, made its public debut at $10 per share. By the following day, its shares had reached a new peak, closing at a staggering $233 each.

The remarkable surge in its growth can be attributed to several factors: its close connection with President Donald Trump, who often lauded the network while criticizing Fox News; its strategic move to only offer 6% of its shares during its initial public offering (IPO); and the similar market trends that temporarily boosted other stocks associated with Trump.

Despite having a significant reach of approximately 40 million Americans through its cable, satellite, and digital channels, Newsmax has faced criticism for disseminating conspiracy theories surrounding the 2020 elections, the January 6th Capitol attack, and COVID-19 vaccines. The network’s election claims have even led to defamation lawsuits from voting machine companies Smartmatic and Dominion, with Smartmatic settling for $40 million last year, while the lawsuit by Dominion remains ongoing.

2024 saw Newsmax’s revenue surge by 27% to reach $171 million, thanks to an increase in viewers prior to the elections. However, this growth was offset by a broader net loss, which increased from $42 million to $72 million. This significant deficit can be attributed to the expansion of their platform to accommodate growing viewership and legal expenses tied to the Smartmatic settlement. If Dominion wins its case, these losses may escalate further. Currently, Newsmax’s stock is trading around $14 with a market capitalization of approximately $1.3 billion.

Despite the significant 94% drop, it remains questionable if it’s a good deal since its trading value is equivalent to 7.5 times its sales from the previous year. Therefore, rather than continuing with Newsmax, it could be more prudent to consider investing in a smaller tech company that has the potential for faster growth and surpass Newsmax’s market capitalization within the upcoming year. I think the autonomous delivery robot manufacturer Serve Robotics (SERV) might suit this purpose well.

Why does Serve Robotics have a brighter future than Newsmax?

In 2021, Robotics Inc., a company originally born from Uber Technologies, was independently established. Their latest Generation 3 delivery robots can reach speeds of 11 mph, travel up to 48 miles on a single charge, and can carry as much as 15 gallons of cargo. They’re built to withstand harsh weather conditions. Interestingly, Uber Eats remains their primary client, and they currently deploy these robots exclusively in Los Angeles and Dallas.

So far, the company has introduced 350 delivery robots into service, with their initial group of 100 operating in the Los Angeles area. Afterward, an additional 250 robots were put to work in both the Los Angeles and Dallas markets. Yet, it was only 73 of these robots that were actively on routes during the first quarter of 2025.

In 2024, Serve’s revenue was under $2 million, while its expenses resulted in a significant loss of $39 million. However, despite these modest figures in comparison to its market value of $604 million, the company plans to introduce an additional 2,000 delivery robots for Uber Eats by the end of 2025. In the subsequent two years, they anticipate deploying even more robots, broadening their presence in cities (with Atlanta as the first expansion this year), and attracting more customers.

If Serves aggressive expansion strategy materializes, experts predict its revenue will skyrocket to $84 million in 2027, accompanied by a net loss of $44 million during that year. Given this projection, the company appears somewhat undervalued when valued at 7 times its projected 2027 sales. As per Markets and Markets analysis, the global market for delivery robots is poised to expand at an impressive annual rate of 32.4% from 2025 to 2030, as more businesses opt for automation in their delivery services and decrease their reliance on human couriers.

If Serve meets analyst predictions and is valued at 20 times its projected annual sales, its market value could grow to approximately $1.7 billion within the next year, surpassing Newsmax’s current valuation. Conversely, Newsmax’s valuation could diminish substantially if it loses the Dominion lawsuit or faces further legal action. Despite Serve Robotics being a risky investment, its potential for growth might outshine the most extravagant Trump-inspired stock of the year.

2025-07-23 12:21

Why does Serve Robotics have a brighter future than Newsmax?

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