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's stock price jumped another 50% higher on Tuesday morning, one day after the right-leaning media company saw its share price run from $10 to $83 during its Wall Street debut. The 50% increase in early-trading on Tuesday pushed Newsmax,