NMAX pairs a high-asymmetry momentum-continuation setup with genuine cash-burn and short-interest risk, and a strong three-quarter earnings beat streak was punctuated by one extreme miss, leaving a speculative, high-volatility picture that could resolve sharply in either direction.
Thesis pillars
- High Asymmetry Momentum Continuation→Stable
- Cash Burning Quality Concern→Stable
- High Short Interest Squeeze Setup→Stable
- +2 more pillars — see the Why tab for full reasoning
Newsmax, Inc. (NMAX) Stock Analysis
Momentum Cont setup
Communication Services · Broadcasting
Sell if holding. Engine safety override at $8.46: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10 and A.R:R 5.7:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 94%; Below-average business quality.
Newsmax Inc. is a television broadcaster and multi-platform content publisher operating cable news channels Newsmax and Newsmax2 alongside digital publishing, radio and e-commerce businesses, with content reaching over 100 million U.S. homes through cable, satellite and... Read more
Sell if holding. Engine safety override at $8.46: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10 and A.R:R 5.7:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 94%; Below-average business quality. Chart setup: Trend continuation, RSI 58, MACD bullish. Score 5.2/10, moderate confidence.
Passes 8/10 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 38d clear, semi cycle peak clear, materials cycle peak clear). Fails on death cross (50MA < 200MA). Suitability: speculative.
About Newsmax, Inc.
About Newsmax, Inc.
Newsmax generated $189.3 million in total revenue during 2025, up from $41.8 million in 2020, split between a $153.3 million Broadcasting segment and a $35.9 million Digital segment. The Newsmax cable news channel reaches over 58 million paid U.S. homes and drew roughly 21 million viewers in 2025 according to Nielsen, while its Newsmax2 FAST channel reaches an estimated 17 million Americans through streaming platforms including Roku, Samsung and Vizio.
Newsmax Broadcasting earns revenue from per-subscriber license fees paid by cable and satellite distributors such as DirecTV, Dish, Comcast/Xfinity, Charter/Spectrum and Verizon, plus advertising sales across its linear Newsmax channel and ad-supported Newsmax2 FAST channel; management notes Newsmax's affiliate fees remain below those of Fox News, CNN, CNBC and Fox Business, citing room for growth. The Digital segment monetizes Newsmax.com and affiliated sites, which draw more than eight million unique monthly visitors, through online advertising, Newsmax+ streaming subscriptions, roughly a dozen health and financial newsletters, and e-commerce sales of nutraceutical supplements and books through subsidiaries Medix Select and Humanix Publishing. Newsmax+ ended 2025 with over 263,000 subscribers paying at least $49.99 annually.
Show full overview
Newsmax's advertising revenue is tied to election-cycle seasonality: the 10-K states the company has experienced relatively higher revenue and cash flow in years with congressional and presidential elections, with lower results in intervening years, and cautions that its historical revenue growth has masked this cyclicality, a pattern that could become more pronounced if growth decelerates. Political-advertising demand also depends on candidates' and campaigns' willingness to spend, exposing results to regulatory or third-party intervention over where and when political ads may run.
See also: Communication Services · Broadcasting
From Newsmax, Inc.'s most recent 10-K filing, extracted July 6, 2026.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerlimited number of distributors10-K Item 1A: 'Because Newsmax Media derives a significant portion of its revenues from a limited number of distributors, the failure to enter into or renew affiliation and carriage agreements on favorable terms'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
2 floor-breakers
Unprofitable operations — net margin -43.2%. Quality floor flags this regardless of sector context.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $8.46: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10 and A.R:R 5.7:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 94%; Below-average business quality. Chart setup: Trend continuation, RSI 58, MACD bullish. Prior stop was $7.86. Score 5.2/10, moderate confidence.
Take-profit target: $15.72 (+86.0% upside). Prior stop was $7.86. Stop-loss: $7.86.
Quality below floor (2.8 < 4.0).
Newsmax, Inc. trades at a P/E of N/A (forward 129.3). TrendMatrix value score: 4.7/10. Verdict: Sell.
8 analysts cover NMAX with a consensus score of 4.1/5. Average price target: $19.
What does Newsmax, Inc. do?Newsmax Inc. is a television broadcaster and multi-platform content publisher operating cable news channels Newsmax and...
Newsmax Inc. is a television broadcaster and multi-platform content publisher operating cable news channels Newsmax and Newsmax2 alongside digital publishing, radio and e-commerce businesses, with content reaching over 100 million U.S. homes through cable, satellite and streaming distribution. Revenue splits between Broadcasting ($153.3 million in 2025) and Digital ($35.9 million in 2025) segments, driven by MVPD license fees, advertising, Newsmax+ subscriptions and nutraceutical and publishing sales, with total revenue growing from $41.8 million in 2020 to $189.3 million in 2025.