Newsmax (NMAX -11.02%) stock got hit with another round of big sell-offs Friday. The media company's share price closed out today's trading down 10% despite the S&P 500 gaining 1.8% and the Nasdaq Composite climbing 2% in the daily session.

Newsmax stock saw another big valuation pullback today despite a seemingly positive development for the business. The company benefited from meme stock momentum in the first days following its initial public offering (IPO) on March 31.

Newsmax stock sinks despite major contract renewal

Outside of an announcement that Newsmax had signed a multiyear program hosting extension with Greta Van Susteren, there wasn't anything in the way of business-specific news for the company today. If anything, the new contract to extend The Record With Greta Van Susteren is probably a positive development for the company -- but that wasn't enough to support the company's share price.

Initially, Newsmax stock actually posted gains in today's trading and had been up as much as 13.4% in the session, but it couldn't hold on to those gains, even though the broader market moved higher as the day progressed. Investors likely saw signs that the stock's meme momentum was fading and opted to sell shares in response.

What's next for Newsmax?

Despite huge sell-offs this week, Newsmax still has a market capitalization of roughly $2.94 billion. With the business posting sales of $171 million last year, the company is now valued at roughly 17.2 times the revenue it recorded last year.

While Newsmax managed to increase sales roughly 26% annually last year, there's a risk that sales growth will be significantly lower this year in the absence of tailwinds connected to the 2024 elections. Given that the business also posted a $72 million net loss last year, it's hard to get excited about the stock, even after recent valuation pullbacks.