Fed Says Social Media Stock Valuations Appear ‘Stretched’
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The Federal Reserve said valuations of social media and biotechnology shares appear to be “stretched,” even as stock valuations overall remain close to historical norms.
“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,” the Fed said in its semi-annual Monetary Policy Report delivered to Congress today.