GM Defriends Facebook

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The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and technology and media editor/analyst Andrew Tonner discuss topics across the investing world.

In today's edition, Brendan and Andrew discuss GM's recent decision to stop advertising on Facebook. GM will maintain its free Facebook page but will no longer purchase advertising on the site. Brendan thinks this could potentially affect Facebook more than GM, considering that GM is the third largest advertiser in the U.S. While the amount that Facebook is losing from GM is very small -- $10 million -- the bigger risk lies in other companies following GM's lead and taking a harder look at advertising on Facebook. Andrew thinks this might hurt Facebook a bit but won't have a material impact on the company, as there are still a massive amount of people that can be reached on the social networking site.

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At the time this article was published Andrew Tonner has no positions in the stocks mentioned above.Brendan Byrnesowns shares of Ford. The Motley Fool owns shares of Ford.Motley Fool newsletter services recommendFord, General Motors Company, and Procter & Gamble. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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