"The Federal Reserve Chief Just Poured Cold Water on Social Media Valuations"
Ahead of her appearance before the Senate Banking Committee on Tuesday, Yellen released the Fed's semi-annual Monetary Policy Report. Twenty pages into the report, Yellen spares a few words to address the issue of tech valuations.
"[S]igns of risk-taking have increased in some asset classes," she writes. "Equity valuations of smaller firms as well as social media and biotechnology firms appear to be stretched, with ratios of prices to forward earnings remaining high relative to historical norms."
Several tech stocks, and particularly social media tech stocks, went negative in early trading Tuesday following Yellen's remarks.