Mahaney has buy recommendations on Amazon and Alphabet, and doesn't cover Microsoft. Amazon shares have dropped 7.4 percent this year, after more than doubling in 2015, while Alphabet has gained 0.3 percent to start the year, as of Friday's close.
Apple has gained 4.36 percent, after falling 3 percent in 2015. With two-thirds of its revenue coming from iPhones and with analysts expecting a decline in sales of its flagship devices, Apple is out to prove it can expand in software and services.
Credit Suisse analyst Kulbinder Garcha wrote in a recent report that subscriptions for iTunes, iCloud and eventually a TV service should be substantial enough to drive the stock, because investors will appreciate the profitability of software and the recurring monthly revenue.
Apple is far from a one-hit wonder, of course. The company still generates more than $20 billion a year in Mac sales and revived itself 15 years ago with the iPod music player. But software has always been an afterthought.
"The growing iPhone installed base could enable Apple to grow its higher-margin services business through additional iTunes, apps and software sales as well as through services such as Apple Pay and Apple streaming music service," Canaccord Genuity analyst Michael Walkley wrote in an April 13 report. Services present "long-term opportunities to drive further top-line growth."