Ironfire Capital founder Eric Jackson recently stated that he believes Facebook may be gone by 2020. He based his analysis on Facebook’s stock price, which has been sliding ever since it went public.
“In five to eight years they are going to disappear in the way that Yahoo has disappeared,” he said on CNBC’s 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% of the value it was at the height of 2000,” he said. “For all intents and purposes, it’s disappeared.”
Jackson sees the same thing happening to Facebook, which he says is failing to keep up with the world as it moves faster and gets more competitive by the day.
“I think those who are dominant in their prior generation are really going to have a hard time moving into this newer generation.”
Jackson says that even though Facebook can spend billions of dollars purchasing mobile apps, they’re going to have a tough time keeping up with other companies. Whether Jackson’s prediction comes to fruition remains to be seen, but what most of us can count on at the moment is that despite their stock’s struggles, Facebook won’t be going anywhere in the near future.