Did GM announcing they would no longer advertise on Facebook hurt the IPO?

[scobranchi]

I would say probably not or very little. In the long run, it raises the issue with Facebook's long term ability to earn money through advertising since GM found no significant return on their advertising dollars. If other companies follow suit, then Facebook may have some problems. As for the IPO, most early plays are not really about the long term health of a company and are based on momentum. Investors who were in on the initial offering were not concerned about what GM was doing and most will churn the stock fairly early. For individuals buying in the first few days, I would guess they were trying to cash in on an early run on the price (which did not happen) or bought it because they like the product and thought the stock would reflect that without giving much thought to GM or Facebook's ability to earn profits. As for the timing, I'd say it's coincidence since FB moved the IPO several times and GM pulled out at the end of a contract.