Better Trump-Connected Meme Stock: Newsmax vs. Trump Media
Key Takeaways
Which of these Trump-driven media stocks is a better investment?
Article Overview
Quick insights and key information
6 min read
Estimated completion
cryptocurrency
Article classification
July 19, 2025
12:05 PM
The Motley Fool
Original publisher
Which of these Trump-driven media stocks is a better investment
Newsmax (NMAX -1. 50%) and Trump Media & nology Group (DJT -2, given the current landscape. 24%) are both closely associated with President Donald Trump, considering recent developments
However, Newsmax, which bills itself as a conservative alternative to main media networks Fox News, is among Trump supporters, amid market uncertainty
Trump Media, which was co-founded by Trump, owns the social network Truth Social and the ing media platform Truth+ (an important development)
It aims to be an alternative to larger social media platforms, in light of current trends
On the other hand, Both stocks, through their association with Trump, became meme stocks shortly after their public debuts, trading on emotion
Newsmax went public via a traditional initial public offering (IPO) on March 31, and it soared from its debut price of $10 to a record closing price of $233 the ing day
Trump Media went public by merging with a special purpose acquisition company (SPAC) on March 26, 2024, in today's market environment
Furthermore, It started trading at $70 (this bears monitoring). 90 -- which marked a 42% gain from its premerger closing price (an important development)
Image source: Getty Images
Additionally, But today, Newsmax and Trump Media trade at $14 and $18, respectively
Both stocks crumbled under the weight of their skyrocketing valuations
On the other hand, But which is the better buy
Newsmax faces a lot of near-term challenges Newsmax operates both linear TV and digital ing channels, and it generates most of its revenue from ads, cable licensing fees, and subscription fees
What the data shows is claims to reach 40 million Americans through its media channels and publications
Nielsen data from April found that Newsmax was tied with Fox News among 35- to 64-year-old viewers for "prime engagement. " Newsmax's viewership grew significantly during the first Trump administration, but it was also criticized for moting conspiracy theories regarding the 2020 elections, the Jan. 6 attack on the U
Nevertheless, Capitol, and the risk of COVID-19 vaccines
Voting system makers Smartmatic and Dominion sued Newsmax over its claims the 2020 election
It reached a $40 million settlement with Smartmatic last year, but it hasn't settled with Dominion yet
In 2023, Newsmax's revenue stayed flat at $135 million as its net loss more than doubled to $42 million
That slowdown was largely caused by DirecTV temporarily dropping its channels in a carriage fee dispute
Newsmax had wanted to transition from a free-to-air model to a paid one as its ity grew, but DirecTV rejected those new carriage fees (something worth watching)
Newsmax eventually agreed to revert back to its original free model (and earn a split of the carrier's ad revenue) to return to DirecTV
At the same time, In 2024, Newsmax's revenue rose 27% to $171 million as the U
Additionally, Election cycle heated up again and drove more viewers to its linear and digital channels, amid market uncertainty
However, its net loss widened to $72 million as its settlement with Smartmatic and the costs of expanding its infrastructure to handle its growing audience crushed its operating margins
In the first quarter of 2025, Newsmax's revenue rose 12% year over year to $45 million
Moreover, It narrowed its net loss from $51 million to $17 million, but that was mainly due to its easy year-over-year comparisons to the Smartmatic settlement
Analysts haven't vided any forecasts for the rest of the year, but it could face a lot of pressure as it laps the election, ramps up its spending, and deals with the legal costs in its dispute with Dominion
Trump Media is still leaving its investors in the dark Trump Media generates most of its revenue from Truth Social, but it doesn't disclose its monthly active users (MAUs) or any other core social media metrics
However, 3 million MAUs this January
It recently launched its Truth+ ing media platform, but the Android version of its app has only been downloaded 50,000 times (quite telling)
On the other hand, At the same time, Rumble (NASDAQ: RUM), the conservative-leaning ing platform, says it reached 59 million MAUs in its quarter
Meanwhile, In 2023, Trump Media only generated $4. 1 million in revenue as it racked up a net loss of $58, given the current landscape
Conversely, In 2024, its revenue declined to $3. 6 million as its net loss widened to $401 million (an important development)
That decline was caused by Truth Social's stagnating growth, competition from bigger social media platforms X and Meta Platforms' Facebook, and a renegotiated ad revenue sharing deal with an "undisclosed" advertising partner
What the re reveals is s massive net loss was caused by its ballooning stock-based compensation expenses, higher legal costs, changes to how its warrants and convertible debt was valued, and soaring interest charges on its debt
On the other hand, In the first quarter of 2025, Trump Media generated just $821,000 in revenue with a net loss of $31, amid market uncertainty
But in early July, it submitted a filing for a new crypto exchange-traded fund (ETF) that would bundle Bitcoin with several other cryptocurrencies
If apved, that ETF might boost its cash flows while diversifying its away from its sluggish social networking and ing media es
This demonstrates that better buy: Newsmax With a market cap of $1
Meanwhile, 85 billion, Newsmax isn't cheap at 11 times last year's sales, given the current landscape
But it's more reasonably valued than Trump Media, which is worth $5. 13 billion -- or 1,475 times last year's sales, in this volatile climate
Furthermore, So while Newsmax's future is still murky, it certainly looks the better buy, in this volatile climate
If you believe Newsmax will keep gaining more viewers in this politically divisive environment, pull more viewers away from Fox News and other main media networks, and resolve its legal issues, it might be worth nibbling on
But if you don't think it can check all three boxes, it might be too risky to buy (something worth watching) (an important development)
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors
On the other hand, Leo Sun has positions in Meta Platforms (an important development), given the current landscape
This leads to the conclusion that Motley Fool has positions in and recommends Bitcoin and Meta Platforms
The Motley Fool has a disclosure policy.
Related Articles
More insights from FinancialBooklet