With Facebook's share price dropping faster than you can say 'dropping', a hedge fund manager has predicted that Facebook will "disappear" in five to eight years.
Imagining a world without Facebook sounds pretty unbelievable, it stocks are sliding and according to Eric Jackson, the founder of Ironfire Capital, "In five to eight years they are going to disappear in the way that Yahoo has disappeared" he 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."
"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," said Jackson. His prediction of Facebook's demise comes just weeks after the social network's troubled IPO whch has seen its share price fall to $25.87.
Jackson added that so far there have been three generations of "Internet companies".
He says that Yahoo is a great example as an online pioneer whilst Facebook is an example of the second generation with the wave of social media. The third generation is all about mobile, says Jackson. Facebook has started to concentrate on mobile but critics have said that users are not making Facebook any money at this point. With nearly 1 billion users, Facebook has begun to address these issues but are still short of coming up with a way to entice and make money from users.
"Facebook can buy a bunch of mobile companies, but [it is] still a big, fat website, and that's different from a mobile app," Jackson said.