Facebook started at $38.00/share. In 2 weeks, the stock plummeted to $26.90. It seems Facebook will end up like Yahoo, Netscape, AOL, and MySpace. It is only a fad that will fade away.
(CNBC) Facebook will lose dominance as a major web company in less than a decade, Eric Jackson, founder of Ironfire Capital said Monday on CNBC's Squawk on the Street.
"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."
Jackson said there have been three generations of web companies. The first generation was big web portals, such as Yahoo [YHOO 15.01 0.09 (+0.6%) ], where content was aggregated in one place. The second was the social web with Facebook [FB 26.90 -0.82 (-2.96%) ] and the third generation is companies focused entirely on monetizing the mobile platform, something Facebook will continue to struggle with, Jackson said.
Last month Facebook acknowledged its mobile challenge in a regulatory filing. The company stated that the growing number of mobile users using Facebook is hard to monetize and "may negatively affect our revenue and financial results."