Is Janet Yellen Wrong on Social Media Stocks?

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July 16 (Bloomberg) -- Eileen Burbidge, partner at Passion Capital, talks with Manus Cranny about comments from Federal Reserve Chair Janet Yellen about social media stock valuations and the teaming of Apple and IBM on business software. She speaks on “The Pulse.”

Passion capital.

Is this shocking the fed decides to send us a memo to tell us that tech is overstretched?

I think it is interesting.

They had to try to assert what their involvement would be and how engaged they could be with the market.

It was a bit of a stretch for them to say is valuations were overstretched.

Do you disagree?

I disagree.

I think it was a sweeping generalization and it was ill guided.

A lot of media coverage, some of the examples people would throw out to validate janet yellen's comments.

The biotech index has a multiple of 500. things like facebook.

Of 20% since the beginning of the year.

Up 136% from a year and a half ago.

In orders of magnitude -- let's leave that aside.

Apple and ibm, ibm has the hardware and apple has the kit.

What a beautiful marriage.

Should apple have a prenup?

I do not know -- strategically, it is a great story.

What you can deliver sounds fantastic.

The question is, the devil in the details, how will the execute on this?

Let take five years, six years -- will it take five years, six years, seven years?

Look at the players in the deal.

Are the executors?

They are good leaders.

I think they're very good at focus and very good at getting their teams to execute.

This will be -- it is going to be a little bit more than frost.

They did go to great pains to make sure the underscore the commitment and the partnership.

Time will tell.

It will take far too long.

A great opportunity for startups.

They feed into this.

An opportunity.

There is an opportunity to deliver security and solutions and applications for ios devices.

How they are working out -- while they are working out how they do that, it is a great opportunity for startups.

Do you think the innovation

This text has been automatically generated. It may not be 100% accurate.

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