Amazon most ‘ferocious’ company in US: Peter Thiel


Amazon effect? Why U.S. companies shouldn’t try to compete with Bezos’ empire

Billionaire Peter Thiel warns that U.S. companies should not try to compete with e-commerce giant Amazon.

Billionaire investor and activist Peter Thiel has advice for U.S. companies: Don’t try to compete with Jeff Bezos’ sprawling e-commerce giant Amazon.

Continue Reading Below

“Amazon is the most ferocious company in the U.S. at this point,” he told FOX Business’ Maria Bartiromo during an interview at The Economic Club of New York on Thursday. “It is probably the company that you don’t want to be competing against.”

AMZNAMAZON.COM INC.1,984.40+19.88+1.01%

Since Bezos founded the company in 1994, Amazon has extended its reach. Last year, the company acquired Whole Foods for $13.7 billion. In early February, Bezos joined with JPMorgan Chase’s Jamie Dimon and Berkshire Hathaway’s Warren Buffett to announce a venture that aims to reduce healthcare costs for employees. Bezos is also reportedly thinking about entering the banking sector.

More from FOX Business 

While Facebook, Microsoft, Apple and Google enjoy high margins, Amazon’s online retail business has low margins.

“Therefore almost everything looks like it’s a better-margin business,” Thiel said. “And therefore Amazon is ferociously expansionary. So I think, yes, it’s from the point of view from U.S. corporations, that’s the business you’d have to be most concerned about competitively.”

What do you think?

Click the button below to comment on this article.