Consumer-goods analyst Austin Smith examines conflicting statements from Coca-Cola (KO 0.29%) and General Motors (GM 0.45%) about the efficacy of advertising on Facebook (META 3.04%). General Motors recently pulled its ads on Facebook after finding that the ads weren't boosting sales. While Coca-Cola Marketing Chief Joe Tripodi said advertising on Facebook probably drives sales, Tripodi's comments are less confident than they may seem. With continued questions about advertising on Facebook's mobile platform, the uncertainty makes him wary about Facebook as a viable long-term investment.
If there's one thing we learned from the Facebook IPO, it's that you shouldn't buy the hype. Our top tech analyst, Eric Bleeker, has warned investors to Forget Facebook and told them about the tech IPO they should be buying instead. If you missed his call the first time, it’s not too late: This company has room to soar.
