Latest news with #PatrickTFallon
Forbes
22-05-2025
- Business
- Forbes
Why Is Newsmax Stock Dropping Despite Soaring Viewership?
Photo by PATRICK T. FALLON/AFP via Getty Images Newsmax (NYSE: NMAX) plummeted by more than 11% on Tuesday and is now nearly 70% lower than its initial public offering closing price from March 31. This significant drop occurs despite the conservative media company's swift expansion across cable, digital, and print platforms. Despite Newsmax experiencing a rise in viewership, ranking as the fifth most-watched cable channel and fourth among cable news networks, investors are growing more concerned about the company's poor financials, increased legal risks, and exorbitant valuation. Newsmax's initial earnings report as a publicly-traded entity presents a mixed snapshot. In Q1 2025 (ending March), the firm reported $45.3 million in revenue, a 12% rise compared to the previous year (y-o-y) driven by expansion in its core segments: advertising, affiliate fees, and subscriptions. The channel also experienced a remarkable 50% increase in viewership, reaching 33.6 million for the quarter. Nevertheless, these gains in audience have yet to convert into profitability. Newsmax incurred a net loss of $17.2 million, or $0.49 per share, accompanied by an adjusted EBITDA loss of $1.2 million. This maintains a wider trend of financial underperformance, with full-year 2024 net losses increasing to $72.2 million from $41.8 million in 2023. With a present market capitalization of $2.8 billion, Newsmax is trading at a high price-to-sales ratio of 16.3, significantly above the broadcasting industry average of just 0.48. This significant valuation discrepancy has ignited investor doubt. One of the most critical risks facing Newsmax is legal. The company is currently facing a lawsuit from Dominion Voting Systems, which claims Newsmax made defamatory allegations about vote manipulation during the 2020 U.S. election. A Delaware Superior Court recently determined that there is 'clear and compelling evidence' that Newsmax spread false claims. The case is now headed to a jury trial, with Dominion seeking $1.6 billion in compensation, an existential threat to a company whose total revenue in 2024 was only $171 million. While there's no assurance that such damages will be awarded, the impending uncertainty creates a considerable overhang for investors. Newsmax has robust gross margins around 50%, but its current growth does not justify its valuation. With growing losses, legal exposure, and restricted financial capacity, the stock faces serious downside unless the company can grow profitably and address litigation. Investing in a single stock can be risky. On the other hand, the Trefis High Quality (HQ) Portfolio, with a selection of 30 stocks, has demonstrated a history of comfortably outperforming the S&P 500 over the past 4-year span. What accounts for this? As a collective, HQ Portfolio stocks achieved superior returns with reduced risk compared to the standard index, with a smoother performance evident in HQ Portfolio performance metrics. It should also be acknowledged that stocks can fall abruptly – 20%, 30%, or even 50% –as witnessed in previous market disruptions. No stock is exempt. Our dashboard How Low Can Stocks Go During A Market Crash demonstrates how key stocks performed during and after the last six market crashes.
The Citizen
05-05-2025
- Sport
- The Citizen
PICTURES: The best from the world of sport over the weekend
PICTURES: The best from the world of sport over the weekend Here is a selection of the best pictures from the sporting world this last weekend. The Blitzboks celebrate with the trophy after winning the men's Sevens LA World Championship at Dignity Health Sports Park in Los Angeles on Sunday. Picture: Patrick T Fallon/AFP Brandin Podziemski of the Golden State Warriors hangs on the basket after dunking the ball against the Houston Rockets during the third quarter in Game Seven of the Western Conference first round NBA play-offs at Toyota Centre in Houston. Picture: Tim Warner/AFP China's Cheng Zilong competes in the men's 10m platform event at the World Aquatics Diving World Cup Super Final in the Water Cube in Beijing on Sunday. Picture: Greg Baker/AFP Chelsea's Enzo Fernandez celebrates after scoring the opening goal during their English Premier League match against Liverpool at Stamford Bridge on Sunday. Picture: Henry Nicholls/AFP Horses race down the track during the 151st running of the Kentucky Derby at Churchill Downs in Louisville, Kentucky on Saturday. Sovereignty powered through the final turn and overtook favourite Journalism in the final straight to win, giving the Godolphin stable a first victory in the US racing classic. Untroubled by the sloppy track on a rainy day in Louisville, Sovereignty gave Venezuelan jockey Junior Alvarado a first Kentucky Derby win. Picture: Leandro Lozada/AFP Real Madrid's Kylian Mbappe celebrates after scoring his team's third goal during their Spanish La Liga match against Celta Vigo at the Santiago Bernabeu on Sunday. Picture: Pierre-Philippe Marcou/AFP McLaren's Australian driver Oscar Piastri celebrates on the podium after winning the Miami Formula One Grand Prix at Miami International Autodrome in Miami Gardens on Sunday. Picture: Charly Triballeau/AFP Relebohile Mofokeng of Orlando Pirates celebrates after scoring a goal during their Betway Premiership Soweto derby against Kaizer Chiefs at FNB Stadium on Saturday. Picture: Samuel Shivambu/Backpagepix Norway's Casper Ruud kisses his trophy after beating Britain's Jack Draper in the final of the Madrid Masters at the Caja Magica in Madrid on Sunday. Picture: Thomas Coex/AFP Belarus' Aryna Sabalenka poses with her trophy after beating Coco Gauff of the United States in the final of the Madrid Open at the Caja Magica in Madrid on Saturday. Picture: Oscar del Pozo/AFP Scottie Scheffler of the United States celebrates with his family after winning The CJ Cup Byron Nelson at TPC Craig Ranch in McKinney, Texas on Sunday. Picture: Stacy Revere/AFP American Chase Jackson competes in the women's shot put during the Shanghai/Keqiao Diamond League athletics meeting in Keqiao, Shaoxing on Saturday. Picture: Pedro Pardo/AFP
The Citizen
05-05-2025
- Sport
- The Citizen
Blitzboks win Sevens World Championship in Los Angeles
It was a perfect weekend for the SA team, winning all five of their matches. South Africa's Blitzboks pose with the trophy after winning the 2025 Sevens LA World Championship at Dignity Health Sports Park in Los Angeles, California, on Sunday. Picture: Patrick T Fallon / AFP South Africa's Blitzboks saved their best for last this season as they went all the way in Los Angeles on Sunday to lift the World Championship title. Phillip Snyman's team beat Spain in the final of the elite eight-team tournament, following the regular season. The Blitzboks won 19-5 in California early Monday morning (SA time) to end a perfect weekend. In the semi-final, they beat New Zealand 26-5, while on day one of the tournament they won all three of their pool matches — against France (19-10), Great Britain (12-7) and Argentina (29-21). It was a second tournament win for the SA Sevens team this season, after also winning their home tournament in Cape Town during the regular season. The try-scorers for the Blitzboks in the final were Selvyn Davids, Mfundo Ndhlovu and Ricardo Duarttee. In the semi-final win against New Zealand, Shilton van Wyk and Quewin Nortje each scored a brace. For the full SA Rugby report click here.
