The latest buzz around Facebook revolves around General Motors dropping their annual Facebook advertising spend of $10mm. This news comes on the heels of weeks of speculation on whether Facebook can improve its weak position with mobile internet users to validate its pre-IPO valuation. Facebook has yet to build a proven mobile revenue strategy while Mary Meeker of Morgan Stanley predicts mobile internet usage to surpass desktop internet usage within five years.
The double whammy of questions around Facebook's mobile revenue strategy and the GM announcement regarding dropping all of their Facebook advertising due to lack of performance looks like a perfect storm brewing before Facebook's initial public offering which could happen as early as this Friday.
As for General Motors, their news is mixed but keeps getting better overall. Along with their remarkable emergence from bankruptcy, and posting a record $9.19 billion profit last year, they are now the first automobile company that Warren Buffet's Berkshire Hathaway has invested in. Even with their shares currently losing value, the investment nod from Berkshire Hathaway should mean even better days for America's top-selling automaker.