Transcript for 'STORY STOCK': Stocks Slump for Major Web Domain Manager
Then a couple of new York and as the financial markets close the day. This is story stocks and one stock with a story today. Is Verisign which calls itself the global leader in establishing Internet domain names as well as -- security. Of course not all stories have a great ending and Verisign is showing signs of trouble. Aaron task instrument cannot explain a little bit about what's going out Verisign -- -- up a break it out what exactly does bears signed -- Read what they they managed domain names for the dot com and the dot net domain -- so when you sign up to go to to create a -- -- Or do you go to when he website really the Verisign is on the back -- Making sure that you are directed to the right place and so why is it in trouble at least according to some of those stock watchers. Well the government on Friday -- United States governed as they say it's -- to give up control. Of the whole domain name process. To some yet as yet unknown international body starting -- when he fifteen. This is -- that the US government has managed really since 1990 -- And scum of the birth -- the Internet as a public sphere but really was started as US government and army. -- so you can understand why the us government had control and in recent years an interest in it has become such a big part of our lives other countries have said hey. -- -- open this up and make it more of an international body sort of the UN. For the Internet and said the US government has said okay we're gonna do that and now folks are looking at Verisign saying wait a minute. They have all the contracts currently with the US government for dot com and dot net and this can be a big risk that interest -- -- -- ticket to look at a chart. Provided to us by Yahoo! finance tracking what -- -- -- today and its overall when your out taking a look at here. So Eric -- pretty big dip right there I mean what's the response -- of these jitters over its future. -- it's an ugly chart because especially because the Dow's up about 175 points today. Right if the -- market was selling off and you had a decline like this it would look bad but not so bad it's worse. Because it was a big -- so the stock -- that much is it is a very negative sign obviously if here. Long Verisign in the company's basically saying that change that the government has made will not affect them at all. But there are some analysts out there who worry about when their current contracts expire. And their current contracts are with the US government or the organization -- the government that manages the Internet. They're gonna have to. Try to find a new contract with whatever foreign body or international body is going to be running. Domain names in the future and there's no guarantee that Verisign we'll get that contract so. It's a big risks to their business of -- that's what. The bears are saying it's in the analysts out there Verisign -- saying it doesn't affect us but I think it doesn't affect them today which is factual. Factually true the question is will it affect them in the future what is -- competitive landscape look for them. It's a very good question it they've been so dominant in such a big player I couldn't even name when their competitors right now. And that's really been a great source of of their business over the years as the economy and -- -- facto standard. And the company of the government has gone to you and I would bet. That there are international competitors out there were licking their chops and waiting in the wings to sign on to say we can do that business do. And that is the risk for -- side Verisign going forward with when you hear us. They might that mean that what are the first -- -- -- comes to my mind anyway is Blackberry it would obviously it -- -- -- dominant force in the market about that kind of corporate technological in -- medication back and -- Is -- a -- have a situation where -- Verisign where in fact if you don't if you have a relatively shallow pool of competitors that you're you're that much more vulnerable. It's an interesting analogy -- -- -- -- the -- there are always competitors -- there there was -- before there was the iPhone in the android phones. That the that the Blackberry always seem to -- -- -- -- -- the monopoly if if you will on corporate accounts and they still have a monopoly in the government accounts. But I think it was easier for them to see this change coming as opposed to you. Verisign. They probably knew that the US government was having these discussions with the international bodies to give up control. I don't know if they knew it was going to be on Friday certainly shareholders don't appear as if that they saw this coming so this is -- more of -- -- A shot out of the blue -- -- the Blackberry which was over the course of several years really their core business got eroded. All right Eric -- from Yahoo! finance Eric thank you so much I appreciate that you did time and insight you watching a story stock on Dan -- New York with abcnews.com. -- --
This transcript has been automatically generated and may not be 100% accurate.