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Posted by on Jun 7, 2012 in Social Networks |

Why analysts believe that Facebook is in free fall?

Why analysts believe that Facebook is in free fall?

Fear is in the air. Output to stock exchange was not a dream as many believed and this has sown doubts about the future of the service. Here is when you add the voice of Eric Jackson, founder of investment firm Ironfire Capital, who said that within five to eight years Facebook technically go away. It’s that simple.

To “disappear” Jackson refers to something similar happen to Yahoo: they were a big company in 2000 and although now still earn and stay alive in the industry, are not what they were before, so that in practical terms “have disappeared.”

What is the problem? Is that there are three generations of services: that index content and do well, which are defined as Web 1.0 (Yahoo! and Google), social networks based on user-Facebook, Web 2.0-and finally those who manage to monetize traffic on mobile devices. It happens that Internet companies historically have had trouble jumping from one generation to another, so that changing times in the past and are replaced by the company subsequent litter.

Facebook goes out of style? Still time to achieve the generation gap and may be one of the first to do so (behind Twitter), a project that even Google has achieved so far, despite having billions in vault and employees have as large thinking minds. And no, buying companies that succeed in the mobile category seems to be the solution.

A retrospective

But if you were not clear, let’s chronology of events. Facebook has a great success in traffic thanks to more than 900 million users of social network, which led to its creator, Mark Zuckerberg, to boost output to the stock market of the company. He made an initial public offering of $ 100,000 million and the share price was $ 38 , all until they were within hours of the event and things started to go wrong.

The share price fell suddenly , causing it to be the worst out of the bag in ten years , so it took up doubts about the Facebook business model , which apparently is not as strong as previously thought and is major shortcoming of the traffic generated coverage on mobile phones , compared with which the company tries to react quickly to restore investor confidence.

Following the whole situation some even say that the portal was boring , while a small group of angry investors accused Mark Zuckerberg of having inside information to know in advance that his company was overvalued , making all forms of public offering the initial one hundred billion dollars, although this resulted out of the list of 40 millions people on the planet .

Link: Facebook Is ‘Going To Disappear’ Within 8 Years, Analyst Says (VIDEO) (Huffington Post)

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