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 stock price crashed 77% on Wednesday after a wild post-IPO rally. Its low share float heightens the stock's volatility.

Investors are glued to Newsmax (NMAX) after shares of the conservative cable TV network rallied an extraordinary 1,00% since their New York Stock Exchange debut on Monday, March 31. The unusual interest in the media outlet’s listing may have been related to its favorable coverage of President Donald Trump and his frequent appearances on Newsmax