Newsmax Inc. (NMAX) stock plummeted 5.50% in after-hours trading on Wednesday, continuing its volatile performance following a remarkable post-IPO surge. This latest decline comes after the conservative media outlet's shares experienced a staggering 2,230% gain in its first two days of trading.

The company, which went public on Monday with an initial offering price of $10 per share, saw its stock soar to as high as $233 by Tuesday's close. However, the momentum has sharply reversed, with the stock experiencing significant selling pressure throughout Wednesday's regular trading session and into the after-hours period.

Market analysts attribute the pullback to profit-taking and a reassessment of the company's fundamentals. Despite the recent surge, Newsmax reported only $171 million in revenue last year, raising concerns about its inflated valuation. The company also faces ongoing litigation related to its 2020 election coverage, which could potentially impact its bottom line.

The extreme volatility in Newsmax's stock price has drawn comparisons to the meme stock phenomenon seen in recent years. However, as reality sets in, investors appear to be reevaluating the long-term prospects of the media company. The current after-hours decline suggests that the market is continuing to adjust Newsmax's valuation to more sustainable levels.