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, a conservative media company, became a meme stock after its IPO skyrocketed by 2,190%, bringing its market valuation to over $20 billion.

Conservative news network Newsmax (NMAX) crashed 77.5% on Wednesday, cutting short its explosive post-IPO run. The stock had soared 2,230% in

Newsmax debuted on the New York Stock Exchange on Monday and surged over 500% in the first few hours of trading, leading to nearly a dozen trading halts following its initial public offering, as its market cap surged to more than $5.5 billion.

Conservative new channel Newsmax's stock surged again on Tuesday after skyrocketing Monday in its first day of trading.

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