Tech

Top internet analyst Mark Mahaney doesn't see a 'sustained sell-off' in tech

Key Points
  • Some of the tech sectors' highest quality names are off 4 or 5 percent from their all-time highs, Mark Mahaney says.
  • "I don't view that as a major change," he says.
RBC Capital's Mark Mahaney: Underlying fundamentals in tech will continue to be consistent
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RBC Capital's Mark Mahaney: Underlying fundamentals in tech will continue to be consistent

RBC Capital Markets' lead internet analyst, Mark Mahaney, said Friday he doesn't see a "sustained sell-off" in the technology sector, at least for fundamental reasons.

"I look at these stocks and I'll look at them differently — off their all-time highs. And the highest-quality names, at least that we look at in consumer internet, are off 4 or 5 percent off of all-time highs, so I don't view that as a major change," Mahaney said on "Squawk Alley."

He spoke as tech stocks were down and the Nasdaq composite was heading heads for its first monthly loss since October, dropping more than 2 percent over the past month. Tech has been the best-performing sector for most of 2017, rising more than 15 percent in the period.

Regarding Alphabet — whose Class A shares are down about 5 percent this week, according to FactSet — Mahaney said he can understand its recent dip considering the news that European Union regulators hit the company's Google unit with a record antitrust fine.

"We'll see in the next 90 days how they have to change their search algorithm or however they do it in Europe. They may need to apply to other markets too. That's the one new fundamental term that could serve as an overhang on that stock," he said.

"(But) the underlying fundamentals for these names are very consistent. Have been and will continue to be," he said. "I don't think we'll have a sustained sell-off in tech."

— CNBC's Fred Imbert contributed to this report.