Tech Bubble Talk Is Overblown: Brian Blair

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April 10 (Bloomberg) -- Rosenblatt Securities Analyst Brian Blair,'s Jim Ramelli, and Bloomberg’s Michael Regan examine the technology stock sell off. They speak with Trish Regan on Bloomberg Television's “Street Smart.” (Source: Bloomberg)


If this was a panic selloff, we would see a move higher in the vick and in gold.

We are seeing muted reactions in those indices.

We have been watching this move out of momentum plays.

What is behind this?

To investors not think the economy and therefore earnings will support if valuations?

That's part of it.

In 2013 we had a 36% increase in the nasdaq.

A lot of the big cap names were up 50% to 100%. as we end the first quarter and head into earnings, there is concern about growth rate and the back half of the year.

I think investors will not want to wait and see what company management teams are saying about what the back half of the year looks like.

Across the tech area, pc's are still weak.

There are areas that are question marks.

Investors are waiting to see what management teams are saying about the outlook.

Does it last, this nervousness?

It's very alarming when you have a selloff like this without a single news catalyst.

You had disappointing chinese trade data.

There are about three different stories on ukraine and russia.

No one is pointing to any single news event trade it's a continuation of this rotation we have seen.

Maybe it's a good thing.

It's not like there is an actual event you can hang your hat on.

We have had four quarters of solid growth for these tech names.

Not just 3-d printing names, but if you look at yelp -- yelp went up 300% last year.

It makes sense to give a little bit of a pullback.

Three percent decline is not substantial when you look at the overall performance.

You look at the overall performance in the nasdaq.

We are 20% off the highs we set back in 2000. we had seen quite a run up, up 30% plus just last year.

Were those kinds of returns unrealistic.

I don't know if they were unrealistic.

These names trade at high valuations.

Everything is trading at high valuation right now.

We are still relatively close to all-time highs.

If this was a panic mode here, if we were going to a bear market, we would see a bigger reaction in the vix.

We were up 20 handles yesterday through relatively thin volume.

It's easy to take those traders out.

Today's move might be exaggerated because of that.

There was no news catalyst today that could have sparked this.

One of the things we talked about, our rosenblatt securities customers today, was to take a look at the companies that are in the best position to benefit from the back half of the year.

We will see a significant product cycle across smartphones and wearable products.

There's a number of areas doing well in china.

We're trying to get investors to line up a basket and look at important names that are doing well.

Names like yelp, that have pulled back 30%, solid business models, and have great

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


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