Paypal founder and venture capitalist Peter Thiel said there is no bubble in the tech sector when he was interviewed by CNBC. “I don’t think we have a bubble in technology. This is nothing like the 90s. The great tech companies have learned to stay private, and there is no bubble, because bubbles only happen with the public is involved.” This is ironic given Ebay’s recent decision to spin-off Paypal, founded by Thiel, into a publicly traded company. The reason many tech companies prefer to stay private is that they don’t need to be held accountable by Wall Street for short term metrics in quarterly earnings report. It is in this spirit he defends Amazon chief, Jeff Bezos.
Thiel said, “On the long term, I would not bet against Bezos. He is one of the great entrepreneurs of our time. I think great companies should not be profitable right away. They should have ideas. They should always have ways they can invest money in the future.”
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Concerning Uber and Airbnb, Thiel thinks Airbnb is more proprietary and is worth more than Uber, which has had a “phenomenal” run, because Uber is in a very competitive space.