Newsmax Stock Skyrockets 15% Today—Here’s Why Traders Are FOMOing In

Newsmax shares just ripped past the competition—so what’s fueling the rally?

The catalyst? Probably another 'strategic pivot'

No official press release? No problem. The market’s betting on whispers of a crypto integration or yet another media company reinventing itself as an 'AI-driven content platform.' Because nothing pumps a stock like buzzword bingo.

Short squeeze or sustainable surge?

That 15% pop smells like a classic case of retail traders chasing momentum. Meanwhile, hedge funds are either quietly loading up or preparing to dump bags on the next sucker.

The bottom line: In today’s market, fundamentals are optional—but a good story (and a few well-timed tweets) can move mountains. Or at least a microcap stock.

Making peace for $67 million

That morning, Newsmax announced that it had reached a settlement with Dominion Voting Systems, which in 2021 brought a defamation lawsuit against the company. Dominion accused Newsmax of making defamatory statements about its business, particularly in connection with its involvement in the 2020 presidential election. The settlement amount is $67 million.

Image source: Getty Images.

Newsmax said that this figure WOULD be paid out in installments over the course of three of the company's fiscal years. It added that the payments would be funded through its revenue.

While $67 million is a considerable amount, it's far less than the $1.6 billion in damages Dominion was originally seeking. It's little wonder that investors were so cheered by the news.

Settlements are the way

In its press release on the settlement, Newsmax continued to insist that it was not in the wrong. It wrote that "it was critically important for the American people to hear both sides of the election disputes that arose in 2020. We stand by our coverage as fair, balanced, and conducted within professional standards of journalism."

This lawsuit isn't the only significant one Newsmax has seen fit to settle with opponents recently. Earlier this year it agreed to pay around $40 million in cash and grant a five-year warrant for 2,000 shares of preferred stock to Smartmatic, another voting systems company that brought a similar lawsuit against the media company.