NEW YORK (TheStreet) -- A recession in Europe following the Brexit can weigh heavily on Internet giants such as Facebook (FB) - Get Report and Netflix (NFLX), CNBC's Julia Boorstin reported on "Squawk Alley" Monday.

"It's not that people will stop using Facebook or Netflix. It's that recession in Europe could really hurt the growth and consumer and advertising spending, as well as currency exchange, for these companies," Boorstin said.

Facebook generated about 24% of its revenues in Europe last year, according to Needham & Company's Laura Martin.

Slowing European advertising demand or currency translation issues could hurt Facebook's valuation, Martin explained.

Also, "all of (Netflix's) growth story and capital investment is offshore, and if either demand or currency translation slow their growth, their multiple is price for protection," Martin told Boorstin.

Jefferies estimated that 50% of Netflix's international revenues come from Europe and a third of that from the U.K. alone.

Additionally, privacy issues come into play when considering the consequences of the Brexit.

"The U.K. has pushed the E.U. to take a lighter touch on regulating Google (GOOGL) and other companies on concerns that the likes of France and Germany might push for a crackdown on these tech companies," Boorstin noted.

Salesforce.com (CRM) may be the "safe haven" stock due to the cloud computing solutions provider's long-term sales contracts, she concluded.

The U.K.'s vote in favor of leaving the European Union (E.U.) last week has led to falling markets across the world including the U.S.

Facebook stock is down by 2.87% to $108.86 early Monday afternoon, while shares of Netflix are slipping by 3.06% to $85.73, and Salesforce stock is lower by 3.11% to $75.98

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Separately, TheStreet Ratings rated Facebook as a "buy" with a score of A-.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

This is based on the convergence of positive investment measures, which can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

You can view the full analysis from the report here: FB

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