GM's announcement adds fuel to critics who say that Facebook, and other tech sites, may be overvalued. More than 50 percent of Facebook users say they never click on Facebook's sponsored advertisement, according to a recent Associated Press-CNBC poll.
In addition, only 12 percent of respondents say they feel comfortable making purchases over Facebook, questioning the effectively of monetizing the social network platform. Facebook’s shares are expected to be valued at around $38 (S$48), making the company poised to be worth up to $100 (S$ 127) billion .
GM's move is akin to political party members quitting the party before a major general election. It shakes up public confidence. In 2008, when GM was heading into bankruptcy, the company dropped some of its large one-time ad spends such as the Superbowl and Emmy award night.