FriendFinder Networks, owners of adult dating sites: AdultFriendFinder.com and Penthouse, is getting slammed by the stock market. Listed on the NASDAQ with an IPO price of $10 on May 11, one week later, the stock lost almost 50% of its value ($5.25/share time of this article being written).

Quick Background:

The company owns a total of 38,000 websites and has built a base of more than 445 million registrants and more than 298 million members in more than 200 countries. In December 2010, the company had more than 196 million unique visitors to their network of websites. For the year ended December 31, 2010 the company had net revenue, income from operations and net losses of $346.0 million, $71.7 million and ($43.2) million, respectively.

The key number, they lost 43.2 million dollars in 2010.! So of course, they go public in the hopes to bring down debt. Haven’t we learned anything? When a company is losing money without true proper growth, why in the world would you purchase their stock at an extremely over valued price? If I could have shorted the stock I would have! Lesson learned, when you have a dating site losing money and looking for investors to help them out of their hole, watch out. If the business model isn’t sound, the site will not prosper.

Is this the beginning of the end of adult friend finder? If you ask me, it already started.