Newsmax Inc. (NMAX) shares continued their downward spiral, plunging 9.03% in pre-market trading on Friday. This latest decline extends the stock's volatile performance since its initial public offering (IPO) earlier this week, as investors grapple with the conservative media outlet's true valuation.

The pre-market plummet follows a tumultuous week for Newsmax. After debuting at $10 per share on Monday, the stock experienced a meteoric rise of 2,230% in its first two days of trading, reaching as high as $233. However, the euphoria was short-lived, with shares plummeting 77.5% during Wednesday's session and falling an additional 5.02% in after-hours trading on Thursday.

Market analysts attribute the ongoing sell-off to multiple factors, including profit-taking, reassessment of the company's fundamentals, and growing skepticism about its long-term prospects. Investors are increasingly questioning Newsmax's brief multi-billion-dollar market capitalization in light of its reported $171 million revenue last year. Additionally, concerns linger about potential financial impacts from ongoing litigation related to the company's 2020 election coverage. As the dust settles from the IPO frenzy, it appears that investors are adopting a more cautious approach, leading to continued downward pressure on the stock price.