The Tech Stock Meltdown Justified? Ask This CEO of a Key Silicon Valley Bank

Investors who are dumping tech stocks may be right to lighten the load. Here's what one key Silicon Valley Bank is seeing on the ground in the Bay Area.
Stocks quotes in this article: FB, TWTR, SF, BMRC

Maybe there is a good reason for the earnings related stock meltdowns for tech darlings (former) Facebook (FB) , Twitter (TWTR) and others. 

The businesses are exhibiting all the signs of a tech cycle nearing a top. Besides slowing second quarter growth rates in users signaling a top, trends in commercial real estate in Silicon Valley look frothy. 

"We haven't seen it [tech stock weakness spilling over] yet, but you are starting to see signs that there are a lot of commercial real estate being taken up by big companies," Bank of Marin (BMRC) CEO Russell Colombo told TheStreet. "But the problem is, if their businesses are starting to soften then they are going to take that space they leased and sublet it and the rates will come down." Bank of Marin is a key bank in tech land, boasting 22 branches in San Francisco, Marin, Alameda, Napa and Sonoma counties.

Colombo spoke to TheStreet on Tuesday at the 2018 KBW Community Bank Investor Conference, held by parent company Stifel Financial (SF) .

Here's what one community bank CEO based in Indiana told TheStreet about farmers and the Trump tariffs.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

TAGS: Fundamental Analysis | Investing | Technical Analysis | Trading | Banking | Financial Services | Community Banks | Video | Executive Interview |

More from Video

One Tweet Pulls the Rug Out From Under the Indexes

James "Rev Shark" DePorre

Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.

A Technical Look at the New Dow Jones Industrial Average

Bruce Kamich

Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.

Conagra Brands Looks Tastier After Its Upgrade to Buy

Bruce Kamich

CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.

Biogen Bulls Get a Lift From Quant Upgrade and Strengthening Charts

Bruce Kamich

Breaking down an approach to the long side of this biotech stock.

Is Renewable Energy the Defensive Stock Opportunity You're Missing

Kevin Curran

AMSC CEO discusses that and China challenges.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight