Silicon Valley venture capitalist Peter Thiel told CNBC on Monday that we are in a government bubble of massive size, and that the bond market is the most distorted of all the markets. "Tech investors always overrate growth and always underrate durability," he added in an interview on CNBC." "You can measure growth but you can't measure durability."
On the PayPal-eBay split, Thiel said the companies have naturally diverged. "It makes sense for them to naturally spin it out again and for PayPal to focus 100 percent on payments," he said. On Alibaba, he said investing in the giant Chinese online retailer is just a bet on Chinese politics.
He said cybersecurity is going to be an ongoing problem. "So much commerce is happening on the Internet and we often have no good intuition of how poor the security is," he said, but added that defense companies cannot provide a solution. "They're not software companies." he said. "I think it's mostly a software challenge, it's not something you'd want a quasi-government contract."He said he thinks Airbnb is undervalued.
"If I had to bet on one that would be the next hundred-billion- dollar company it would be Airbnb," Thiel said. "It's a giant market and it keeps growing very fast. Investors are very biased towards things that they understand." He said that since investors tend to drive around in black cars and stay in five-star hotels, they are more comfortable with Uber than with a couch or house-sharing service.
For that reason, he said, "Uber is overvalued, Airbnb is undervalued."
He had praise for Tesla and Space-X founder Elon Musk, saying "I would not even want to try to compete with Elon. He's in a class of his own." Silicon Valley venture capitalist Peter Thiel told CNBC on Monday that we are in a government bubble of massive size, and that the bond market is the most distorted of all the markets. "Tech investors always overrate growth and always underrate durability," he added in an interview on CNBC's "Squawk on the Street." "You can measure growth but you can't measure durability."
On the PayPal-eBay split, Thiel said the companies have naturally diverged. "It makes sense for them to naturally spin it out again and for PayPal to focus 100 percent on payments," he said.
On Alibaba, he said investing in the giant Chinese online retailer is just a bet on Chinese politics.He said cybersecurity is going to be an ongoing problem. "So much commerce is happening on the Internet and we often have no good intuition of how poor the security is," he said, but added that defense companies cannot provide a solution.
"They're not software companies." he said. "I think it's mostly a software challenge, it's not something you'd want a quasi-government contract."
He said he thinks Airbnb is undervalued."If I had to bet on one that would be the next hundred-billion- dollar company it would be Airbnb," Thiel said. "It's a giant market and it keeps growing very fast. Investors are very biased towards things that they understand."
He said that since investors tend to drive around in black cars and stay in five-star hotels, they are more comfortable with Uber than with a couch or house-sharing service.
For that reason, he said, "Uber is overvalued, Airbnb is undervalued." He had praise for Tesla and Space-X founder Elon Musk, saying "I would not even want to try to compete with Elon. He's in a class of his own."
source: CNBC
On the PayPal-eBay split, Thiel said the companies have naturally diverged. "It makes sense for them to naturally spin it out again and for PayPal to focus 100 percent on payments," he said. On Alibaba, he said investing in the giant Chinese online retailer is just a bet on Chinese politics.
He said cybersecurity is going to be an ongoing problem. "So much commerce is happening on the Internet and we often have no good intuition of how poor the security is," he said, but added that defense companies cannot provide a solution. "They're not software companies." he said. "I think it's mostly a software challenge, it's not something you'd want a quasi-government contract."He said he thinks Airbnb is undervalued.
"If I had to bet on one that would be the next hundred-billion- dollar company it would be Airbnb," Thiel said. "It's a giant market and it keeps growing very fast. Investors are very biased towards things that they understand." He said that since investors tend to drive around in black cars and stay in five-star hotels, they are more comfortable with Uber than with a couch or house-sharing service.
For that reason, he said, "Uber is overvalued, Airbnb is undervalued."
He had praise for Tesla and Space-X founder Elon Musk, saying "I would not even want to try to compete with Elon. He's in a class of his own." Silicon Valley venture capitalist Peter Thiel told CNBC on Monday that we are in a government bubble of massive size, and that the bond market is the most distorted of all the markets. "Tech investors always overrate growth and always underrate durability," he added in an interview on CNBC's "Squawk on the Street." "You can measure growth but you can't measure durability."
On the PayPal-eBay split, Thiel said the companies have naturally diverged. "It makes sense for them to naturally spin it out again and for PayPal to focus 100 percent on payments," he said.
On Alibaba, he said investing in the giant Chinese online retailer is just a bet on Chinese politics.He said cybersecurity is going to be an ongoing problem. "So much commerce is happening on the Internet and we often have no good intuition of how poor the security is," he said, but added that defense companies cannot provide a solution.
"They're not software companies." he said. "I think it's mostly a software challenge, it's not something you'd want a quasi-government contract."
He said he thinks Airbnb is undervalued."If I had to bet on one that would be the next hundred-billion- dollar company it would be Airbnb," Thiel said. "It's a giant market and it keeps growing very fast. Investors are very biased towards things that they understand."
He said that since investors tend to drive around in black cars and stay in five-star hotels, they are more comfortable with Uber than with a couch or house-sharing service.
For that reason, he said, "Uber is overvalued, Airbnb is undervalued." He had praise for Tesla and Space-X founder Elon Musk, saying "I would not even want to try to compete with Elon. He's in a class of his own."
source: CNBC