Even Spiegel, the young CEO of ephemeral messaging app SnapChat thinks that sooner or later, Facebook Inc (NASDAQ:FB) is bound to get doomed just like Yahoo. He didn’t say it publically (of course), but an email leak has depicted Speigel’s secret thoughts about Facebook. Yahoo was once a $128 billion market cap company; it was the web juggernaut and had loads of traffic with investors at its door. Now, its market cap is less than $10 billion. Speigel has the reason for it: Yahoo was living on venture capital based startups and investments; when they dried up, Yahoo died. This is the same case, Spiegel thinks, with Facebook Inc (NASDAQ:FB). Facebook Inc (NASDAQ:FB) is getting massive investments and cash flows from venture capitalists, advertisers and companies hungry for social media fame and likes.
Spiegel analysed it further and explained how Facebook Inc (NASDAQ:FB) will get decline. When the ads dollars will fizzle off from the tech industry, it will give a huge blow back to Facebook Inc (NASDAQ:FB). He thinks that mobile ads install recommendations and ads have been the massive driving force for Facebook Inc (NASDAQ:FB). In future, tech stocks are going to cool down; this will hold back venture capitalists from investing in “unproven businesses’ and as a result, Facebook Inc (NASDAQ:FB) will go in a free fall state, 24 year old CEO wrote in his email which has caused a massive store around the web.
The source said that Spiegel’s concerns are correct partially. Facebook Inc (NASDAQ:FB) is not clear about its app install ads. In a latest investors call, Facebook’s COO was a little confused about what audience actually is targeted in Facebook Inc (NASDAQ:FB) app install ads. This could lead to a disaster in the future.
Ken Griffin holds 4.58 million shares worth $307.87 million of Facebook Inc. (NASDAQ:FB).
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