Newsmax’s Stock Split? More Like a Mess

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So there’s this company called Newsmax, right? They went public, and suddenly everyone’s acting like they’re in a sitcom. IPO at $10, then a day later it’s $265. Like, “Wow, what a ride!” But then it crashes back down to $14. It’s like when you finally get a table at a restaurant, and then the waiter spills your drink. Total chaos.

Now, stock splits. You know, when a company says, “Hey, our shares are too expensive! Let’s just multiply them by 10 and call it a day.” It’s a weird ritual. Like, why not just lower the price? But no, they have to make it complicated. You end up with 10 shares that are each worth a tenth of what they were. It’s like splitting a pizza into 10 slices when you only wanted two. Who’s the genius who thought that was a good idea?

The mechanics of a stock split

Imagine you own one share of a company worth $1,000. Then, suddenly, you have 10 shares worth $100 each. The total value is the same, but now you feel like you have more. It’s the financial equivalent of buying a $500 suit and then getting a free $500 coupon. You’re not richer, but you feel like you are. Classic.

Forward splits are supposed to make the stock more accessible. But if the price is too high, people might not buy it. So the company says, “Let’s just make it cheaper!” It’s like saying, “Our product is too expensive, so we’ll give you half off… but only if you buy twice as much.” It’s a bit of a head-scratcher.

Reverse splits are the opposite. You have 10 shares worth $100 each, and suddenly you have one share worth $1,000. It’s like getting a $1,000 bill for a $100 item. You’re paying more, but you’re also getting less. It’s a bad deal, but sometimes companies do it to avoid being delisted. Like, “We’re not failing, we’re just… rebranding.”

Will Newsmax stock be the next to split?

Newsmax’s stock is like a toddler’s tantrum. It goes from $10 to $265, then drops to $14. It’s not a stable investment. If it had kept going up, maybe a split would make sense. But now? It’s not exactly a “buy” signal. It’s more like a “wait and see” signal. Or a “don’t touch this” signal.

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A reverse split could happen if the stock drops further. But Newsmax isn’t in danger of being delisted. The NYSE only requires a $1 share price. But a stock under $10? That’s like walking into a store and seeing a “50% off” sign that says “50% off if you’re a ghost.” It’s not a good look.

Newsmax is still young, so it probably doesn’t want to scare investors with a reverse split. But it’s not exactly a solid company. It’s like a used car that’s been in a few fender benders. You can’t tell if it’s safe or just hiding the damage.

Newsmax stock is a risky investment

Newsmax’s financials are a bit of a mess. It made $171 million last year, but it’s trading at a P/S ratio of 11. Fox, its competitor, is at 1.5. That’s like comparing a $100 steak to a $15 hot dog. Newsmax’s revenue is up, but its losses are worse. It’s like getting a raise but also getting fired. Confusing.

Newsmax’s political leanings are a double-edged sword. It has a loyal audience, but it’s also gotten into legal trouble. Dominion and Smartmatic sued them over election fraud stories. Newsmax paid $40 million to Smartmatic, but the Dominion case is still ongoing. It’s like getting a speeding ticket and then getting a second one for the same thing. Not great.

Newsmax’s stock is volatile, and it’s not a safe bet. It’s like trying to predict the weather in a tornado. You can’t. The odds of a forward split are almost zero, and a reverse split is only if things get worse. It’s not a company I’d invest in. Unless you like gambling with your savings.

So, in conclusion, Newsmax is a mess. A stock split? Probably not. A disaster? Maybe. But at least the shares are cheap. If you’re into that sort of thing. 🚨

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2025-07-27 21:08