The Call: Facebook Is Dead In Five Years (FB, GOOG, YHOO)
June 4, 2012 by Jon C. Ogg
One analyst has a serious call against Facebook, Inc. (NASDAQ: FB) calling for the company to be dead in five years to eight years. Ironfire Capital founder Eric Jackson made the call. Dead does not exactly translate to ‘bankruptcy’ but his take is one which the Facebook nation might want to consider. This is a call that is not exactly breaking news, but it falls right into the ongoing pessimism against this company as CNBC featured Jackson’s call today.
Facebook won’t be able to evolve and this third wave of web companies is likely to fall out the success down the road. Jackson even noted a risk to Google Inc. (NASDAQ: GOOG) over the next five years. He thinks that the world of just typing search into a box on your PC is going away and that Google was very slow into entering social media. His call is not that Facebook is going bankrupt, but that another entrant will be the next big thing.
Jackson was cautious back on May 4 ahead of this key IPO, but he was much less pessimistic and thought it would pop at the IPO. His call now shows that Facebook would be like MySpace or Yahoo! Inc. (NASDAQ: YHOO) down the road which may still be profitable, but as a shell that still exists at only a tiny level from the peak.
Jackson also contributes to TheStreet.com occasionally and he just published on the Real Money section that BuzzFeed shows useful insights into where Facebook is heading as a company.
In short, Jackson said that Facebook is just another big fat website that is different from a mobile app. Here is the full CNBC audio/video.
JON C. OGG
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