Why Newsmax Stock Zoomed Almost 14% Higher Today

LandenDigital Marketing2025-07-0199710

Key Points

  • The rising star of the media world landed on two notable stock indexes that day.

  • Although this was first announced several weeks ago, the shares benefited from "the index effect" on day one.

  • 10 stocks we like better than Newsmax ›

Newsmax (NYSE: NMAX) reached a notable milestone in its brief existence as a publicly traded company on Monday, and investors reacted by snapping up shares of the stock. It closed the day nearly 14% higher in price, and with that performance absolutely thrashed the S&P 500 index's 0.5% gain.

Maximizing visibility

As of Monday, Newsmax is part of both the Russell 2000 and Russell 3000 indexes. At a stroke this makes the media stock a member of both a prominent small-cap equity tracker, as part of the former index, and a component of an index that includes the largest U.S. companies with the latter.

Image source: Getty Images.

Inclusion on (or exclusion from, while we're on the subject) an index has little if no direct effect on a company's operations and fundamentals. However there's the phenomenon of "the index effect," in which stocks can get pops simply from the free publicity and higher visibility that comes with joining a well-known index.

To a degree, this is justified. The many index funds that sniff around Russell 2000, Russell 3000, or any one of the many other stock indexes always need to be invested in component stocks. Inclusion automatically makes a company a candidate for such institutional buyers, thereby raising demand for its stock to some extent.

Remember what's important

While Newsmax is surely glad and proud to be part of the two Russells, I should reiterate and emphasize that this development alone shouldn't sway investors toward or away from the company's stock.

It's the fundamentals that ultimately matter, and at the end of the day Newsmax will sink or swim on them. Personally, I'm not captivated by its performance and I wouldn't buy the stock just now, although the business surely has potential.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Newsmax Stock Zoomed Almost 14% Higher Today was originally published by The Motley Fool

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Dean

Newsmax's stock climbing almost 14% today signifies a surge in popularity or pending positive news that has captured the attention of investors, fueling speculation and potentially catalyzed increased trading activity.

2025-07-05 07:32:18 reply
Jericho

Newsmax's share price experiencing a near 14% surge today represents the culmination of strategic adaptations, positive market sentiment towards its content and services coupled with unprecedented audience reach.

2025-07-05 07:32:34 reply
Nola

The surge in Newsmax stock by almost 14% today raises concerns about unexplained market fluctuations, especially since it does not seem to align with the current trend of industry fundamentals. This sudden upturn deserves close examination and potential investigation into related developments.

2025-07-05 07:32:49 reply
Quinn

Newsmax's stock skyrocketed by almost 14% today, fueled likely by the recent surge of attention and engagement around their political-news platform amid today’s shifting media landscape.

2025-07-16 22:52:17 reply
Faith

Today's extraordinary 14% hike in Newsmax stock is a testament not only to the company’.

2025-07-17 21:05:14 reply
Crew

The sudden surge of almost 14% in Newsmax's stock price today can be attributed partially to the company’sintelligent programming innovations and growing popularity among conservative media audiences, signifying renewed investor confidence.

2025-07-17 21:05:29 reply
Kanoa

Newsmax stock's nearly 14% upward surge today demonstrates the market sentiment towards its unique media and potential for growth amidst various factors, hinting at a potentially sustainable rally as investors continue to take notice of this influential conservative news outlet.

2025-07-17 21:05:44 reply
Deon

Newsmax's stock surging almost 14% today represents a significant climber amidst heightened investor interest in conservative media and the ongoing influence of political punditry on market sentiment.

2025-07-22 03:42:20 reply
Koa

The surge in Newsmax's stock, jumping nearly 14% today on the market is an unusual and remarkable turn of events that beg questions over what caused this sudden news sentiment shift.

2025-07-22 03:42:35 reply
Cameron

Newsmax's stock surge of almost 14% today reflects investors’ renewed interest in the company amidst recent favorable market conditions and potential upcoming developments, suggesting a strong confidence vote from those capitalizing on its growing influence.

2025-07-23 09:41:55 reply

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