Facebook is trading for less than $20 per share. That's a far cry from the $42 per share that it was at when first publicly traded back in May. That loss in value is sending messages to smaller companies heavily dependent on the internet.
Following along with emerging trends and changes in the online world can be like a full-time job. In fact, for Chris Prendergast, an online marketing strategist for Click Rain marketing in Sioux Falls, it is full-time work. He watched carefully as Facebook shares were made available for the first time just three months ago.
"For the first time they were kind of rounding out their growth. A company that has 900 million users is great if it had was at 800 million last week. If it had a billion last week, that's not so great. So the I.P.O. was maybe dangerous for the stock market," Prendergast said.
But Prendergast says for the general public, getting tied up in the stock value of Facebook isn't necessary. That's because signing up for the free account is nothing like making an investment in stocks.
"For users and for businesses too, it’s not so much of a gamble to try out a new service. For investors it is a different story," Prendergast said.
Prendergast adds the fall of Facebook's value shows that the online world is still full of as many question marks as it is potential dollar signs. But despite apparent troubles on Wall Street, Facebook is still a solid source for online marketing for companies across the country.
"That's where the volume is at. So even though you may not want to invest in a share of it, you definitely want to be where the people are and right now that's still at Facebook," Prendergast said.
And perhaps Facebook's launch into public trade will offer lessons for other companies as the tech world continues to evolve.