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.

Newsmax stock price crashed 77% on Wednesday after a wild post-IPO rally. Its low share float heightens the stock's volatility.

Loyal Newsmax viewers who listened to the channel’s entreaties last year and lined up to buy $10-per-share stakes in the company are feeling pretty rich right about now. Those shares are currently worth more than $130 each.

Newsmax lost $55 million in the first half of last year. But its stock surged this week as shares in the company traded on the public market for the first time.

Conservative TV company Newsmax has seen its stock market valuation surge by more than 2,200% since its debut in New York on Monday. The US firm's shares, which were originally priced at $10 (£7.75) each,

Shares of conservative media outlet Newsmax (NMAX 21.93%) traded with extreme volatility today. Shares fell as much as 24% this morning before doing a complete 180. As of 1:50 p.m