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- 📈 Newsmax's 2-Day 2,050% Surge
📈 Newsmax's 2-Day 2,050% Surge
xAI acquires X for $33 billion, Hims & Hers to sell Lilly's weight-loss drug, CoreWeave shares rip nearly 42% higher, Trump to consider final TikTok proposal, Newsmax stock soars
Evelio Silvera
April 02, 2025
In partnership with
Good morning.
⚡ The Fast Five → xAI acquires X for $33 billion, Hims & Hers to sell Lilly's weight-loss drug, CoreWeave shares rip nearly 42% higher, Trump to consider final TikTok proposal, Newsmax stock soars
🔎 Market Trends → S&P, Nasdaq end higher as stocks gyrate in Trump-tariffs limbo; US Futures Drop as New Tariffs Loom
And now…
⏱️ Your 5-minute briefing for Wednesday, April 2, 2025:
MARKET BRIEF
Before the Open
As of market close 04/1/2025.
Pre-Market
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Fear & Greed
Markets in Review
Tariff Tension Flares—But Markets End on a High Note
The Nasdaq climbed 0.9% to 17,449.9, and the S&P 500 added 0.4% to close at 5,633.1. The Dow stayed flat. Gains in consumer discretionary stocks helped offset pressure from health care and financials.
The Big Picture:
Investors held their breath as Washington neared a new round of reciprocal tariffs, but a late-session bounce suggested resilience under pressure. Traders digested reports of 20–25% levies on autos and broad imports set to kick in this week.
While global counterparts hinted at retaliation, US markets largely shrugged it off—suggesting confidence that corporate America can weather yet another tariff storm. Bond yields dropped, offering some support to equity valuations amid trade jitters and weaker manufacturing data.
Oil drifted lower, down 0.4% to $71.23, while gold hovered just below its all-time highs, reflecting mild risk aversion without full-blown panic.
Market Movers:
Tesla (TSLA) rose 3.6%, continuing its rebound as investors anticipate stronger margins despite tariff headwinds.
PVH (PVH) soared 18.2% after crushing quarterly expectations and guiding higher for the year—proof that brands still matter in retail.
Johnson & Johnson (JNJ) fell 7.6%, hit by a legal setback tied to its talc litigation unit's bankruptcy strategy.
What They’re Saying:
“Prices growth accelerated due to tariffs, causing order backlogs and delivery slowdowns,” said Timothy Fiore, ISM’s manufacturing chair.
WHAT WE’RE WATCHING
Events
Today: Automatic Data Processing, Inc. - ADP Non-Farm Employment Change - 8:15am
Why You Should Care: Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.
Earnings Reports
Today: BlackBerry, RH (Restoration Hardware), Franklin Covey, Bassett Furniture, Novagold Resources, Resources Connection
Tomorrow: ConAgra Brands, Guess?, Lamb Weston, AMMO, MSC Industrial Direct
MARKET BRIEF
Leading News
NMAX's Spectacular Debut: Conservative Media's New Market Darling Skyrockets 900%+
Photo Credit: REUTERS/Brendan McDermid
Why it matters:
Newsmax's extraordinary 900%+ surge since its IPO signals robust investor appetite for conservative media outlets in an increasingly fragmented media landscape, creating both opportunity and heightened risk for momentum-chasing investors.
Zoom Out:
Conservative cable network Newsmax (NMAX) has delivered a jaw-dropping 900%+ return in just two trading days, pushing its market capitalization past $20 billion despite generating only $171 million in revenue last year.
This meteoric rise places NMAX's valuation at 120x revenue — astronomically higher than traditional media peers like Fox (FOX) which trades at roughly 1.5x revenue, suggesting this rally may have more to do with meme-stock dynamics than fundamental business performance.
Key Insights:
Newsmax's $75 million IPO transformed into a $20.8 billion market cap almost overnight, demonstrating the power of retail investor enthusiasm in today's market, reminiscent of 2021's meme stock frenzy.
Despite 26% revenue growth in 2024, the company posted a $72 million loss and disclosed "material weaknesses" in financial controls — red flags that would typically give value-oriented investors serious pause.
Substantial legal liabilities including an ongoing $1.6 billion Dominion lawsuit and a partially-paid $40 million Smartmatic settlement create significant balance sheet risks that appear disconnected from the current valuation.
Market Pulse:
"What we're witnessing with NMAX has all the classic hallmarks of a speculative bubble, but timing the inevitable correction is a fool's errand," notes veteran media analyst Sarah Chen at Blackstone Capital.
Bull’s Take:
Smart investors might consider small, calculated positions with strict risk controls if they want exposure to this momentum trade, but remember: gravity eventually reasserts itself — often with brutal efficiency.
Headlines
Elon Musk’s xAI acquires X for $33 billion (link)
Hims & Hers to sell Lilly's weight-loss drug on its telehealth platform (link)
CoreWeave shares rip nearly 42% higher, rising above IPO price (link)
Visa bids $100 million to replace Mastercard as Apple's new credit card partner (link)
Trump to consider final TikTok proposal on Wednesday (link)
Hooters Files for Bankruptcy, but Its Restaurants Will Stay Open (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to wallstmemes
Apple’s Starlink Update Sparks Huge Earning Opportunity
Apple just secretly added Starlink satellite support to iPhones through iOS 18.3.
One of the biggest potential winners? Mode Mobile.
Mode’s EarnPhone already reaches +45M users that have earned over $325M, and that’s before global satellite coverage. With SpaceX eliminating "dead zones" worldwide, Mode's earning technology can now reach billions more.
Mode is now gearing up for a possible Nasdaq listing (ticker: MODE) but you can still invest in their pre-IPO offering at $0.26/share.