Both Newsmax (NMAX) and Trump Media & Technology Group (DJT) are closely tied to former U.S. President Donald Trump. While Newsmax positions itself as a conservative counterpart to mainstream media networks like Fox News, it is well-liked by Trump’s supporters. On the other hand, Trump Media, which was established by Trump himself, manages Truth Social (a social network) and Truth+ (a streaming media platform). Their goal is to offer alternatives to larger social media platforms.
After their initial public releases, both stocks gained popularity due to their connection with Trump, often being referred to as “meme stocks” as they were heavily influenced by emotions. Newsmax, for instance, launched its IPO on March 31, and its stock price skyrocketed from the opening price of $10 to an unprecedented closing price of $233 the next day. On the other hand, Trump Media made its public debut through a merger with a special purpose acquisition company (SPAC) on March 26, 2024. Starting at $70.90, this marked a significant increase of 42% from its closing price prior to the merger.
Today, Newsmax and Trump Media are trading at approximately $14 and $18 each. Due to their rapidly increasing market values, both stocks have faced a significant drop. However, the question arises: Which one offers a better investment opportunity?
Newsmax faces a lot of near-term challenges
Newsmax manages both traditional TV broadcasts and digital streaming platforms, primarily earning income through advertisements, cable subscription fees, and subscriptions. They claim to impact around 40 million American viewers via their media outlets and publications. According to Nielsen’s April statistics, Newsmax and Fox News had equal engagement among viewers aged between 35 and 64 during peak viewing hours.
During the Trump presidency, the audience for Newsmax expanded substantially, yet faced criticism for propagating theories concerning the 2020 elections, the Capitol riot on January 6th, and the potential dangers of COVID-19 vaccines. Companies involved in creating voting systems, Smartmatic and Dominion, took legal action against Newsmax due to their claims about the 2020 election. Last year, it reached a $40 million settlement with Smartmatic, but hasn’t yet settled with Dominion.
In 2023, Newsmax maintained its earnings at $135 million while its net loss increased significantly to $42 million. This decrease was mainly due to DirecTV momentarily removing its channels during a disagreement over broadcast fees. Newsmax aimed to shift from a free-to-air service to a paid model as its audience expanded, but DirecTV refused the proposed higher fees. Ultimately, Newsmax opted to go back to its initial free service and share in the carrier’s advertising revenue to resume broadcasting on DirecTV.
2024 saw a significant increase in Newsmax’s revenue, reaching $171 million, which represented a 27% surge. This growth was fueled by renewed interest in the U.S. election cycle, resulting in more viewers tuning into both their linear and digital platforms. Nevertheless, despite this revenue boost, the company’s net loss expanded to a substantial $72 million. This was primarily due to the settlement with Smartmatic and the expenses associated with expanding the infrastructure to accommodate its burgeoning audience, which negatively impacted its operating margins.
In the opening three months of 2025, I observed that Newsmax’s earnings surged by 12% compared to the same period the previous year, reaching a total of $45 million. Despite this increase, their net loss decreased from $51 million to $17 million. This reduction was primarily due to favorable year-on-year comparisons following the Smartmatic settlement. As for future projections, analysts have yet to offer any predictions for the remainder of the year. However, Newsmax may encounter significant challenges ahead as it approaches the next election, intensifies its spending, and navigates the ongoing legal battles with Dominion, incurring additional costs.
Trump Media is still leaving its investors in the dark
Trump Media primarily earns its income through Truth Social, yet it remains secretive about its monthly active users (MAUs) and other key social media statistics. As per SEO.ai’s data, Truth Social only had approximately 6.3 million MAUs in January. More recently, Trump Media introduced the Truth+ streaming media platform; however, the Android app has been downloaded merely around 50,000 times. In contrast, Rumble (NASDAQ: RUM), a video platform with conservative leanings, claims to have amassed 59 million MAUs during its latest quarter.
By the year 2023, Trump Media recorded a mere $4.1 million in earnings while facing a staggering net loss of $58.2 million. The following year, in 2024, their revenue dipped further to $3.6 million, and the net loss deepened significantly to an alarming $401 million. This downward trend was primarily attributed to the slow growth of Truth Social, increased competition from larger social media platforms such as Meta Platforms’ Facebook, and a revised advertising revenue-sharing agreement with an unnamed advertising partner. The substantial net loss was primarily due to escalating stock-based compensation costs, rising legal fees, adjustments in the valuation of warrants and convertible debt, and skyrocketing interest payments on their outstanding debts.
During the first three months of 2025, Trump Media earned a revenue of $821,000 but recorded a significant net loss of $31.7 million. However, in the early part of July, they put forward an application for a fresh crypto exchange-traded fund (ETF). If this ETF is accepted, it could potentially increase their cash inflow and broaden their business scope beyond its slow-performing social networking and streaming media ventures by bundling Bitcoin with multiple other cryptocurrencies.
The better buy: Newsmax
As a fervent investor, I find myself drawn to Newsmax, boasting a market cap of $1.85 billion. Despite its seemingly steep price tag at 11 times last year’s revenue, it appears more reasonably priced compared to Trump Media, valued at an eye-popping $5.13 billion – that’s a whopping 1,475 times last year’s sales! Now, Newsmax’s future may still be shrouded in uncertainty, but given this comparison, it certainly seems like the smarter investment choice.
If you’re optimistic that Newsmax will continue attracting more viewers in today’s politically charged climate, outdraw Fox News and other established media outlets, and successfully navigate its legal challenges, it could be a smart move to invest modestly. However, if you’re skeptical about its ability to achieve all three of these factors, investing might prove too risky.
Read More
- KPop Demon Hunters: Is Your Idol by Saja Boys Inspired by Real K-Pop Bands? Here’s What We Know
- Ultraman Live Stage Show: Kaiju Battles and LED Effects Coming to America This Fall
- Gold Rate Forecast
- Justin Bieber Teases New Album ‘SWAG’ with Tracklist Reveal
- 15 Best Sherlock Holmes Actors, Ranked from Worst to Best
- Superman’s Record-Breaking $21M+ Thursday Box Office: Highest of 2025
- Superman’s Rotten Tomatoes Score Blasts Past Expectations—Shocks Even the Harshest Critics
- 📢 BrownDust2 X BiliBili World 2025 Special Coupon!
- Tokyo Game Show 2025 exhibitors announced
- Dakota Johnson-Anne Hathaway’s Verity Release Date Out: Here’s When Colleen Hoover’s Movie Adaptation Will Hit the Screens
2025-07-20 03:45