Choice Techs For Stock Investors
It's one of Wall Street's favorite themes now: Technology stocks will lead the market back from the depths. Citi's Mark Mahaney points out that investors should be careful about selecting tech stocks; technology is not immune to the downturn.
"You've seen across almost all technology companies, with maybe the exception of Amazon.com and Netflix, you've seen people cutting jobs," he told CNBC.
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Among individual stocks, Mahaney likes Google, whose growth continues, although it has slowed.
"Overall, advertising is going to decline dramatically in the U.S. this year, but search is one category that is going to give you mid, high single-digit growth," he said. "This tells you that there is a market-share shift."
What about areas away from Internet advertising?
"In the Internet connectivity space, there's Akamai," he said. "It's a company that's still going to do decent double-digit growth."
Disclosures:
Mahaney's firm owns shares of Google, and has received compensation from Google over the last 12 months for products and services other than investment banking. His firm also makes a market in the securities of Akamai.
