IPO activity post-pandemic has fluctuated significantly, primarily driven by economic uncertainty, rising interest rates, and inflation, all of which have impacted investor sentiment.

But the tide has shifted positively over the past year, with 2024’s IPO market recovering from the barren landscape of 2023.  

And this week, Newsmax NMAX has dominated headlines following its IPO, with shares soaring as a result. However, it's not the only notable IPO we’ve seen recently, as CoreWeave CRWV also debuted recently.   

But what exactly do the companies do? Let’s take a closer glance at each.

What is Newsmax?

Newsmax NMAX is a multimedia and broadcasting company that offers independent news with a conservative perspective. Breaking news from around the globe and other platforms, Newsmax reaches more than 40 million Americans on a regular basis.

Newsmax states that it champions a free press, one that provides Americans with balanced coverage, diverse viewpoints, and honest debates on the issues affecting their lives. The company has an app available for download, with viewers also able to tune in through traditional cable and satellite providers, its social media platforms, or simply its website.

Shares have been scorching hot, initially debuting at $14/share before touching an intraday high north of $240/share in today’s session. While the price action has been stellar, investors should be extra cautious due to the volatility.

What About CoreWeave?

CoreWeave shares also debuted last week, though the price action hasn’t been nearly as positive relative to NMAX. CoreWeave provides enterprises and leading AI labs with cloud solutions for accelerated computing.

Given its backing by AI-favorite NVIDIA NVDA, the IPO reflected one of the most exciting we’ve seen in the AI space recently, though concerns about customer concentration have been discussed thoroughly, with Microsoft reflecting 62% of CRWV’s FY24 sales.

It’s worth noting that CRWV announced an $11.9 billion deal to deliver AI infrastructure to OpenAI in early March, aimed at expanding OpenAI's computing capacity for training. Shares overall stand to benefit in a big way from the exponential growth in demand for AI.

Bottom Line

IPO news has dominated headlines this week, a nice breather from other recent economic developments that have weighed heavily on sentiment.

Newsmax NMAX shares have been blistering hot since their debut, with CoreWeave CRWV shares also seeing positive action. 

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This article originally published on Zacks Investment Research (zacks.com).

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