Now its impossible to imagine a world without Facebook, but after the sliding of stocks its hedge manager, Eric Jackson has predicted that Facebook will end soon in a period of 5 to 8 years (around 2020). He said “In five to eight years they are going to disappear in the way that Yahoo has disappeared”.
Yahoo Inc is still profitable and has 13,000 employees, but its 10 percent of the value that it was at the height of 2000. They were at the peak of the market, but now its market is slowly falling. According to him, Facebook’s market will fall similar to Yahoo.
Eric Jackson has predicted that the next generation would be the growth of smartphones and mobile phones, but currently Facebook has 430 million mobile active users which is roughly half the user database of Facebook and its predicted that it will increase in the coming years. Until now Facebook is struggling to make money from these users.
Being aware of this already, Facebook is now trying to buy Opera, and even has its plan to build its own mobile phone, but Eric Jackson said, “Facebook can buy a bunch of mobile companies, but its still a big, fat website and that’s much different from a mobile app”.
“Look at how Google has struggled moving into social, and I think Facebook is going to have the same kind of challenges moving into mobile”, Jackson added.
At the end of today’s market, Facebook’s stock fell to USD 25.87, which is below its initial offering. Hope Facebook finds a solution to its mobile users soon.