Wall Street Analyst Payne: Tech Bubble Not Ready to Burst

Friday, 15 Nov 2013 08:21 PM

By Cynthia Fagen and David A. Patten

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The tech bubble may be inflated, but it's not about to burst, Fox Business Network contributor Charles Payne told Newsmax TV on Friday.

"Certainly you can hear the B word, the bubble word, popping up everywhere, but we're not at that point," said Payne, who also heads a Wall Street research firm.

"Where Pets.com went public [and] …people were putting together business plans on a napkin on a Wednesday and going IPO by Friday… we're not at that level."

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Payne said there's no doubt that new social media apps, like Snapchat, which recently turned down a $3 billion offer from Facebook, are crowding out older technology, because "the technology is moving so quickly," Payne said in an interview at the Restoration Weekend gathering in Palm Beach, Fla.

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Instagram, the online photo sharing app, "is probably going to be as valuable as the Facebook play, particularly in terms of valuation as younger people get off Facebook, they go to Instagram," he said.

"These guys are trying to stay a step ahead of the game. And by the same token, this week alone, we saw Cisco [Systems] come out of terrible earnings and the stock took a punishing price. So the older-school technology is giving way to some of the newer things. We've got cloud computing, we've got a whole lot of things that really are starting to come to fruition," he added.

"I don't see where there are a whole lot of companies out there that we can't connect the dots. Either they are profitable now or we can see them being profitable."

Payne also weighed in on Obamacare debacle.

"The president is making people buy health insurance plans that they didn't want, they can't afford, and it's going to wreck them. We're going to have fewer people with health insurance, certainly over the next several months. And the people who are taking the plans are going to Medicaid.

"The whole thing is being driven by ego and ideology and if one of the sycophants in the inner circle doesn't say, Mr. President, you have to scratch this; even if you just scrap it for a year, keep your dream alive, it's an unmitigated disaster.

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"It was dead on arrival, it was not put together right in the first place, it wasn't a bipartisan thing. It was all about doing something historic and it is going to be historic, but for all of the wrong reasons," said Payne.

"This will be his [Obama's] Waterloo."

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