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RBC's Mark Mahaney reveals his top tech stocks for 2017

Looking to invest in the tech sector? Consider Netflix, Facebook and Amazon, says analyst Mark Mahaney.

"I wouldn't say Netflix is obvious," Mahaney, a tech analyst with RBC Capital Markets, said in an interview on CNBC's 'Squawk Box' Friday. "I think it's still one of the most controversial names in large-cap tech."

Why is Wall Street still hesitant when it comes to Netflix? Competitive risk, the rising cost of content and the ability or lack thereof of CEO Reed Hastings to handle those added expenses.

Although it's not in Mahaney's top three list, Google is an obvious crowd favorite. Mahaney said that Google has reported 28 consecutive quarters of 20 percent year-over-year revenue growth. "That's almost unheard of, especially for a company of that scale."

In 2017, Mahaney says tech companies — such as Google, Facebook and Amazon — are focused on investing. "That's the new wrinkle for investors," Mahaney explained, should tech companies experience a shrink in margins as a result of those additional investments and cash burn.

Link many other analysts in the industry, Mahaney is waiting anxiously to see how Snap is priced in its upcoming March IPO because this could impact social media companies, he says. But he isn't too concerned about Zuckerberg's Facebook conglomerate. "They already have two of the largest messaging platforms in the world. That's good enough."