An analyst sent initial shockwaves through the social media sphere this week with the claim that Facebook will vanish within the next 5-8 years, but more analysts are reportedly beginning to climb on board with that assertion.
“in five to eight years they are going disappear in the way that Yahoo has disappeared,” announced Ironfire Capital founder Eric Jackson during an appearance on the US stock exchange TV program Squawk on the Street.
“Yahoo is still making money. It’s still profitable, still has 13,000 employees working for it. But it’s 10 per cent of the value that it was at the height of 2000.
“For all intents and purpose, it’s disappeared.”
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According to Computerworld, Mr Jackson outlined three generations of internet companies: online, social media, and now mobile. One of Facebook’s biggest issues is monetising the site via mobile, where ads are not currently viewable by users.
Citing Google’s struggle in its attempts to add the social component to its operations, Mr Jackson said Facebook will face a similar challenge as it moves into the mobile space.
The absence of Facebook would certainly provide other tech start-ups with a massive opportunity, but Facebook CEO Mark Zuckerberg has maintained optimism in the face of challenge, writing in his company’s IPO filing:
“Facebook was not originally created to be a company. It was built to accomplish a social mission - to make the world more open and connected. We believe that we have an opportunity to have an important impact on the world and build a lasting company in the process.”
Since going public last month, Facebook has dropped a quarter of its value.