I met Fred at a municipal golf course in Yonkers this spring.
A retired construction worker, Fred enthusiastically shared with me a plan to invest $100,000 in Facebook stock as soon as the company went public.
“I’ll be driving that red Camaro by September,” he gushed to me pointing at a shiny, new convertible in the parking lot. “I’ll double my money by the end of the year.”
I hope Fred still ends up being right. But the odds aren’t looking good. Facebook’s stock opens trading today at $20.77, less than half of the company’s first NASDAQ trade on May 18.
That decline is impacting more than Facebook’s shareholder value. It’s impacting the perceived value of Facebook, the brand. And that is likely to continue as negative headlines—and negative online commentary—about its stock price snowball.
Fairly or not, Facebook is becoming a social-media victim of the very medium it helped to create.