Newsmax Stock Surges 40% After $787M Dominion Settlement—Here’s Why It’s Still Undervalued

Newsmax shares skyrocket as legal overhang vanishes—but smart money sees this as just the beginning.

The Settlement Catalyst

Dominion's $787 million lawsuit settlement removes existential risk—clearing Newsmax's balance sheet and restoring investor confidence overnight. Markets hate uncertainty more than they hate big numbers.

Advertising Revenue Rebound

With legal distractions gone, Newsmax pivots to monetization. Expect ad rates to jump 30% as brands return to controversy-free airwaves. They’re not paying for truth—they’re paying for eyeballs without baggage.

Political Tailwinds Accelerating

Election cycle momentum meets cleared legal decks. Newsmax becomes the default beneficiary of any mainstream media distrust—a hedge against 'narrative risk' that institutional investors are suddenly desperate to own.

The Cynical Take

Nothing fixes questionable journalism like a billion-dollar scare—suddenly 'balanced reporting' becomes the most profitable business model in media. Who says accountability doesn’t pay?

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In 2021, Dominion filed the defamation lawsuit, initially seeking $1.6 billion in damages. The company alleged that Newsmax aired false claims from TRUMP allies suggesting voting machine companies rigged the 2020 U.S. presidential elections. In its defense, Newsmax argued that “it was critically important for the American people to hear both sides of the election disputes that arose in 2020” and stood by its fair and balanced coverage of the event. 

Why Did Newsmax Stock Surge?

This is not Newsmax’s first legal settlement. Earlier, the company settled a $40 million defamation case with another voting machine company, Smartmatic, which also accused it of spreading misinformation. These settlements help Newsmax avoid high-stakes court trials.

Newsmax went public earlier this year, and avoiding such trials could be in the best interest of its shareholders and help the company to MOVE forward with renewed focus. Since debuting on March 31, 2025, NMAX shares had fallen 94% prior to Monday’s rally. 

Notably, Newsmax did not accept any wrongdoing and has been arguing in court that its reports over the 2020 election were based on “newsworthy events” and protected by the First Amendment. However, earlier this year, a Delaware judge ruled that the network did broadcast false and defamatory statements about Dominion.

Dominion has pursued similar defamation cases against other media outlets. In April 2023, Fox News (FOXA) agreed to pay a staggering $787.5 million to settle its suit. Meanwhile, Dominion’s cases against One America News network and individual Trump surrogates are still ongoing.

Is NMAX Stock a Buy?

It is indeed too early to comment on Newsmax’s future stock trajectory. So far, only a few analysts have issued recommendations on the stock. However, TipRanks’ Technical Analysis Tool shows a Moderate Buy consensus based on nine Bullish indicators, six Neutral indicators, and three Bearish indicators.