NEW YORK (CNET) – Will Facebook suffer the same fate as MySpace in a few years? That’s what one analyst predicts. Speaking on CNBC’s “Squawk on the Street” television program on Monday, Eric Jackson, founder of Ironfire Capital, said that Facebook will lose its dominance as a social network in less than 10 years.
In his forecast, Jackson cited Facebook’s inability to crack the mobile market and the stock’s 27 percent nosedive since the company’s IPO. “In five to eight years, they are going to disappear in the way that Yahoo! has disappeared,” Jackson said. “Yahoo! is still making money, it’s still profitable, still has 13,000 employees working for it, but it’s 10 percent of the value that it was at the height of 2000. For all intents and purposes, it’s disappeared.”
Projecting doom and gloom for Facebook has become a popular hobby, especially since the company went public last month. Faced with a listless stock price, concerns over its online advertising and the usual ongoing privacy worries, the social network seems to be on the brink of disaster, according to some people.
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