GERMANY: Facebook investors bound to get disappointed, Frankfurt trader says.

Record ID: 860939

  • Title: GERMANY: Facebook investors bound to get disappointed, Frankfurt trader says.
  • Date: 19th May 2012
  • Summary: FRANKFURT, GERMANY (MAY 18, 2012) (REUTERS) NEON SIGN READING "FRANKFURT STOCK EXCHANGE" HIGH SHOT OF FLOOR DAX BOARD TRADER DAX CURVE TRADER WORKING ON COMPUTER AS FACEBOOK FOUNDER MARK ZUCKERBERG SPEAKS ON TV (SOUNDBITE) (English) CHIEF TRADER WITH CLOSE BROTHERS SEYDLER BANK AG, OLIVER ROTH, SAYING: "It's going to be very difficult for the management to fulfil the expectations of all the investors, simply because Facebook is automatically now so expensive as a stock that the results afterwards have to be more or less, in my point of view, a huge disappointment for the investors. But right now, for the next couple of days, maybe weeks, Facebook will be a hype, the stock price will go up and up." WIDE OF DAX BOARD VARIOUS OF TRADERS WORKING ON COMPUTERS WIDE OF DAX BOARD HIGH SHOT OF FLOOR
  • Embargoed: 3rd June 2012 13:00
  • Keywords:
  • Location: Germany
  • City:
  • Country: Germany
  • Topics: Business,Finance
  • Reuters ID: LVA5OSEC5K3024OV9HBV7DLCDV6C
  • Aspect Ratio:
  • Story Text: While Facebook Inc. shares fizzled on their first day of trade on the Nasdaq, one trader in Frankfurt said on Friday (May 18) that investors in the company were bound to get disappointed.
    Facebook shares erased early gains of as much as 18 percent to trade close to their initial public offering price.
    "It's going to be very difficult for the management to fulfil the expectations of all the investors," said Oliver Roth, chief trader with Close Brothers Seydler bank AG. "Facebook is automatically now so expensive as a stock that the results afterwards have to be more or less, in my point of view, a huge disappointment for the investors. But right now, for the next couple of days, maybe weeks, Facebook will be a hype, the stock price will go up and up."
    The stock opened 11 percent higher and rose to $45 before rapidly heading south in frenzied trade, touching its initial public offering price of $38. The No. 1 online social network raised as much as $18.4 billion in one of the biggest initial public offerings in U.S. history.
    After a delay in the opening print that drove up anxiety levels among traders and onlookers outside the Nasdaq, the company's closely watched stock began trading at $42.05, compared with an IPO price of $38.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2012. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register