Posted on June 08 2012 – 10:00 PM – Posted by: Doug Brady
Facebook‘s sliding stock price has at least one hedge fund manager predicting a dismal decade ahead for the social network.
“In five to eight years they are going to disappear in the way that Yahoo has disappeared,” Ironfire Capital founder Eric Jackson told the CNBC show Squawk on the Street on Monday.
“Yahoo is still making money, it’s still profitable, still has 13,000 employees working for it, but it’s 10% of the value that it was at the height of 2000,” Jackson added. “For all intents and purposes, it’s disappeared.”
So how exactly does Jackson see Facebook’s power eroding by decade’s end? He says it will be the continued emergence of the mobile web — and Facebook’s struggle to adapt to that paradigm shift.
“The world is moving faster, it’s getting more competitive, not less,” he said. “I think those who are dominant in their prior generation are really going to have a hard time moving into this newer generation.
“Facebook can buy a bunch of mobile companies, but they are still a big, fat website and that’s different from a mobile app.”