Warning: 3 Reasons to Be Cautious About Newsmax Stock After Its Epic Post-IPO Surge

Newsmax (NYSE: NMAX) has been sizzling since completing its initial public offering (IPO) this week. Shares of the conservative news network rocketed over 700% the day it went public, rising from its $10 IPO price to over $80 per share. It continued its epic run on day two, soaring nearly 180% more. Its blistering two-day run has seen the stock leap more than 1,500% to over $233 per share. If you're like most investors, you want a piece of that price action. However, before you buy Newsmax stock, you need to consider the risks. Here are three warning signs investors must consider to avoid potentially getting burned by this hot stock. Many factors can cause a stock to surge following its IPO. However, one catalyst tends to drive its long-term performance: profitability. A company needs to make money to support its operations and growth over the long term. If a company continues to lose money, its stock will likely lose value. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool