In the first 70 minutes quoting for the first time on the stock market, they had to suspend operations several times. Its value reached US $233.
A new “meme action” was born on Tuesday on Wall Street: it’s about Newsmaxa conservative media who lived a moment of euphoria after his debut in the bag. Its price shot more than 2,000%, which led to the suspension of operations.
The papers today climbed 180% to US $ 33 in New York, after rising 735% in their debut session, in which the operations were suspended several times. Tuesday’s oscillations, between US $ 114,22 YU $ S215, occurred when more than seven million shares had changed hands. In the first 70 minutes of operations, five volatility arrests were activated.
The rebound caused the company’s greatest shareholders to have enriched themselves exceptionally, at least on paper. The founder and executive director, Christopher Ruddy, has almost a third of the company’s capital, for US $ 8.4 billion. The founder of Interactive Brokers Group, Thomas Peterffy, owns the second largest participation, which now has a value close to US $ 5,000 million.
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Wall Street has a Dej-Vú for the “Meme Stocks”
This recalls the madness of the “Meme Stocks” of 2020 and 2021when investors precipitated the actions to obtain amazing profitsleaving the conventional estimates of its fundamental value behind. In 2021 and 2022, the titles of more than a dozen companies experienced similar peaks immediately after their departures, many of which were tiny. Speculators inside and outside Wall Street caused the shares of the companies to shoot, before finally collapsing more than 90%.
“This is like the initial market reaction to DJT with steroids,” said Steve Sosnick, head of Interactive Brokers, referring to the increase in the actions of the media company of President Donald Trump, Trump Media and Technology Group Corp., which quotes under his initials.
“This is the most recent incorporation into the meme pantheon,” said Sunick. “Who knows if it will persist or not, but it has all the characteristics of a meme action. There must be some passion for investors to overlook the foundations, and Newsmax meets that requirement.”
The bearish operators expressed their desire to sell the papers in short while comparing them with previous actions that shot before collapsing.
The story is against him
Skeptics consider that Newsmax will join a group whose actions shot in their first sessions as a public company. Only seven other titles closed their debut sessions with an increase exceeding 700% after an exit to the US in the last five years, generating returns to the appropriate operations.
These companies were long -term losers: the shares of the average group of the group fell almost 94% from its IPO prices, collapsing approximately 99% from their respective maximums.
Source: Ambito
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