Shares of GM received a boost after Warren Buffett’s Berkshire Hathaway (BRK.A) disclosed it bought 10 million shares in the largest U.S. automaker in the first quarter. This is the first time that Buffett has bought stocks in the company since it survived bankruptcy in 2009. Berkshire tweaked a number of positions in its $75.3 billion portfolio during the first three months of 2012 and added a stake of 1.6 million Viacom (VIA).
GM posted a first-quarter net income of $1 billion, fuelled by U.S. vehicle sales. The automaker is benefiting from a recovering U.S. auto market, on pace for its best vehicle sales since 2007, and growth in China that helped reclaim global industry leadership in annual deliveries last year.
Right before Facebook’s IPO, GM announced on Tuesday it will stop its $10 million worth of advertising on the social networking site after it decided paid ads had little impact on consumers’ car purchases. The move by GM, the third largest advertiser in the U.S., puts a spotlight on an issue that many marketers have been raising: Whether ads on Facebook help them sell more products and whether or not the website can sustain the 88% revenue growth it achieved in 2011.
General Motors (GM : NYSE : US$21.95), Net Change: 0.53, % Change: 2.47%, Volume: 12,795,555