The Lesser of Two Evils: Facebook vs. GM

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If you had to buy either Facebook Inc. (Nasdaq: FB) or General Motors Co. (NYSE: GM), which are both down 40% from their recent IPOs, what would you do?

On Wednesday Money Morning's Shah Gilani appeared on Fox Business' "Varney & Co." to tackle that question.

With GM trading around $20 and Facebook stock hovering around $21, the share prices are both at or approaching 52-week lows, but which is the better value?

Gilani's answer may surprise you.

Watch the entire accompanying video to get a full analysis on each company.

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  1. A Parker | August 7, 2012

    Nice interview. I agree with Shah Gilani's closing remarks: I don't like facebook, for the moment, but at least there's a potential there: its basic idea, platform of free speech, will be difficult to squelch in the US, but especially abroad-hence its international potential; GM, by contrast, exists in a box, and despite all kinds of govt subsidies etc past present and future, its viability will always be tethered to the manoeuvres of its box-maker (US govt and unions) as its box-maker responds to the manoeuvres of other box makers internationally (Europe, Korea, etc). When you see, eg in France, how quickly a newly elected national government can change its policies towards its taxation of its individuals and businesses (ie:the box) in order to compensate for its crony corruptionalism ('sovereignty') and subsequent lack of competivity internationally, and the result-that the business (Peugeot for example, or Michelin) moves elsewhere, or 'fails'and has some government entity tell it what terms it can be bought by (the number one chicken producer in France, for ex),any imaginative and clear-thinking individaul investor can quickly extrapolate French events and apply them to GM:enough to drive away any serious individual investor from investing in GM, and to go rather with ANYTHING BUT (ie Facebook). Just a thought from an expat.

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