Is Facebook Doomed? Analyst Predicts Site Irrelevant by 2020

Is Facebook doomed? Recent stock activity would indicate that confidence in the company’s longevity is shaky, at best.

Now, one analyst has suggested that Facebook will be no more relevant in 2020 than America Online (AOL) is today.

In a recent interview on the CNBC show “Squawk on the Street,” Ironfire Capital founder Eric Jackson had this to say of the social networking site:

“In five to eight years they are going to disappear in the way that Yahoo has disappered,” adding that “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 believes Facebook’s problem is that it’s gotten too “big” and “fat” and won’t be able to adapt to changing conditions in the tech market. Specifically, he referred to the social network’s recent troubles in branching out to mobile media. Jackson indicated that it’s possible a new social networking company will emerge with mobile devices like tablet PCs and smartphones in mind. That could spell disaster for Facebook, which is still far easier to log in and navigate on a desktop or laptop computer than on an iPhone or Android device.

The real question is whether or not Facebook is capable of adapting to changes in a very fluid market. Clearly, Jackson doesn’t think so, and it appears he’s not alone. After all, Facebook’s stock closed below $26 today, representing a dramatic 32 per cent drop in value since the company first went public a few weeks ago.

But there could be changes on the horizon. Facebook is reportedly in talks to buy out browser firm Opera, giving it a chance to construct its own web navigation tool with social media playing a starring role. If such a rumored product can provide protection and interface options comparable to features offered by Mozilla, Google, and Microsoft, it’s possible Facebook stock could make a substantial turnaround.

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