NEW YORK (TheStreet) --RBC Capital Markets lead tech analyst Mark Mahaney broke down the tech sector as it relates to the incoming Presidency of Donald Trump. Despite the Dow Jones rallying to close at an all-time high on Wednesday, several tech stocks failed to keep pace.
"The backdrop here is that they are dramatically out-performing last year. Surprisingly, they are outperforming again this year except for [Alphabet (GOOGL) ] but that's right in-line with the market," Mahaney said on CNBC's "Squawk Box" this morning.
Trump has called out Amazon.com (AMZN) regarding antitrust issues, "so maybe that's why that traded off," he ascertained.
Citing discussions with Priceline (PCLN) and Expedia (EXPE), Mahaney thinks the impact of a Trump presidency on tech companies might not be so negative.
"Their responses were; we probably see no impact in terms of our core business demand, probably a more benevolent corporate tax environment and regulatory environment from a Republican Congress and President," Mahaney stated.
Another beneficiary will be cash repatriation.
"You look at Facebook (FB), Google, and Priceline these companies have $60 to $80 billion cash overseas. To the extent that they can bring it back efficiently, tax efficiently, it's a benefit for the companies and shareholders," Mahaney explained.
A "particularly positive" change resulting from Tuesday's election results, he added.
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