Newsmax Stock Jumps as Conservative Media Company Gets Another Trump Bump

The right-wing media company was added to the Russell 2000. (Chip Somodevilla/Getty Images))

Newsmax stock was rising Monday after the right-wing news outlet was added to the Russell 2000 and notched a streaming partnership with Trump Media & Technology Group, the parent company of Truth Social.

The inclusion of Newsmax in the small-cap Russell 2000 and Russell 3000 indexes took effect Monday, as part of the FTSE Russell’s annual reconstitution process. Newsmax had announced its expected inclusion earlier in June.

The move “provides Newsmax with increased visibility within the institutional investor community,” the company said in a press release Monday.

Newsmax stock was up 12% to $14.95, bringing its market capitalization close to $2 billion.

The broadcaster, which enjoys a friendly relationship with President Donald Trump, claimed another apparent victory Monday when Trump Media said it had begun global beta testing for a streaming platform called Truth+. The move will make Newsmax available in international markets.

While he is no longer a majority shareholder, the president has the largest stake in Trump Media, which trades under his initials: DJT. The stock was up 1.4% Monday.

Truth+, which the company described in an April shareholder letter as “an alternative to woke Hollywood entertainment and biased news broadcasts,” has been available in the U.S. on various mobile and connected television platforms since October. The app expanded to Canada and Mexico in April and will become available in “app stores around the world” pending approvals, Trump Media said.

Newsmax will be front and center. “Being on Truth+ will introduce Newsmax to a new audience and will create a significant boost in viewership around the world,” Newsmax CEO Chris Ruddy said in a statement.

It isn‘t clear how significant that boost will be. Trump Media did not release viewership numbers in its most recent quarterly financial report, saying only that the company was assessing opportunities such as advertising or a premium subscription package.

Companies linked in some way to Trump often see volatile swings in their share prices after major—and sometimes even routine—announcements.

Newsmax stock spiked more than 700% after a public offering in March before cratering back toward its $10 offering price. And Trump Media itself is down 48% so far this year after an extended post-inauguration sell-off.

It wasn’t obvious Monday whether the Russell 2000 inclusion or the Truth+ announcement were having the greatest impact on Newsmax’s stock.

Write to Nate Wolf at nate.wolf@barrons.com