Facebook Will Lose Supremacy and Disappear By 2020
The recent decline in Facebook’s stock price and as its IPO received bad press after large drop in price, the company is expected to face a dismal decade ahead.
According to Eric Jackson, founder of Ironfire Capital, Facebook is going to disappear in the coming years just like Yahoo has vanished.
“Yahoo is still making money, it’s still profitable, still has 13,000 employees working for it, but it’s 10% of the value that it was at the height of 2000,” Jackson added. “For all intents and purposes, it’s disappeared.”
He further added that the world is moving at a faster pace and therefore, the big giants have to face more competition in the future, and those who are leading the industry are really going to have a tough time moving into this newer generation.
“Facebook can buy a bunch of mobile companies, but they are still a big, fat website and that’s different from a mobile app.”
Facebook recently acquired Instagram — a mobile photo-sharing app and a big rival — for $1 billion. Still, the company considers mobile as a potential competitor and stumbling block for sustained growth.
From Jackson point of view, Facebook is a part of the second of three generations of the newest internet companies. In the first generation, there are huge businesses like Google and Yahoo whereas the second generation is Facebook, who is considered to be the biggest social giant ever in the history.
However, the third generation is highlighted by companies whose mission is to influence and monetize mobile users.
Jackson says, while analyzing these three generations, you come up with a conclusion that how successful you are in one generation, you will not be able to translate that success in the second generation, no matter how much revenue you have generated and how many competent people you have in your organization.
According to him, Google has really struggled hard moving into social, and Facebook will have to face similar difficulties moving into mobile.