Facebook’s success will be short lived, according to one Wall Street analyst, predicting the site will “disappear” in under a decade a decade.
Ironfire Capital founder Eric Jackson believes Facebook, despite all the hype and user growth, is still a one-and-done company that will fade away -- like AOL and Yahoo before it.
"In five to eight years they are going to disappear in the way that Yahoo has disappeared," Jackson said on CNBC’s Squawk on the Street Monday. "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."
'Those who are dominant in their prior generation are really going to have a hard time moving into this newer generation.'
For Jackson, there have been three distinct generations of web companies. First were the big web portals like Yahoo. Next came Facebook and the rise of social media. The third is mobile, he believes, a bus Facebook may have already missed. Rumors of a Facebook phone, the Instagram purchase, and the company’s new Camera app indicate the company is clearly trying, but it won’t be easy.
"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," Jackson said.
Since its controversial blockbuster IPO, Facebook’s stock has lost over a quarter of its value as investors wonder whether the company can get its act together.
"The world is moving faster, it's getting more competitive, not less, and I think those who are dominant in their prior generation are really going to have a hard time moving into this newer generation," Jackson told CNBC. "Facebook can buy a bunch of mobile companies, but they are still a big, fat website and that's different from a mobile app."