NEW YORK (TheStreet) -- Lead tech analyst at RBC Capital Markets Mark Mahaney appeared on CNBC's "Squawk Alley" on Wednesday afternoon to talk about his top tech stock picks: Expedia (EXPE), Alphabet's (GOOGL) Google and Netflix (NFLX).
RBC Capital likes Expedia because they like the travel space as a whole, Mahaney said, noting that the whole sector is consolidated into two names - Priceline (PCLN) and Expedia."
While Expedia has been underperforming this year, it's now trading at a reasonable discount to Priceline and its integration with vacation rental site HomeAway, which it acquired last year,appears to be going well, Mahaney explained.
The firm has an "outperform" rating and $1,000 price target on search engine Google after its new CFO Ruth Porat provided greater disclosure, bought back stock, and has been better at managing expenses than past CFOs, Mahaney explained.
While pessimists on Facebook (FB) and Google say there's "almost a certainty in the market that growth rates have to decelerate sharply" in the second half of 2016, RBC Capital doesn't think that's the case.
"We think there's a lot of initiatives [Google] has laid out like enhanced text ads and a fourth link on mobile search," he explained.
In addition, mobile cost per clicks (CPCs) are gaining and Google's video-sharing website YouTube is becoming "more and more material," he said.
The firm favors Google over Facebook partly because of sentiment, but mainly because the social networking site isn't "set up as well" for the second half of 2016, Mahaney explained.
Third, RBC Capital views Netflix favorably even though the video-streaming service reported higher churn, or percentage of customers canceling the service, he said. That's because the firm attributes the churn to a pricing push back that can be fixed by increasing the value proposition of the service, Mahaney said.
As Netflix rolls out more and more original content that is successful, like its latest eight-part drama series "Stranger Things," its value will catch up to its higher price and subscriber growth will strengthen again, he explained.
"Our surveys over time have always said that original content is kind of an anticipatory anti-churn factor," he concluded.
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