When it comes to the technology sector, companies are increasingly either "have" or "have nots," a top analyst said.
Mark Mahaney of RBC Capital Markets recently updated his top stock picks, and one major theme was the "quality bifurcation" of the sector spilling over from 2015, he said in a research note.
"Since the bottom, we've seen stocks with strong and/or accelerating fundamental trends outperform, while those with business model, product, execution and/or integration risk have materially underperformed," Mahaney wrote.
Facebook and Google, for instance, seem to be suffocating Yahoo and Twitter when it comes to advertising dollars, he wrote.
His top large-capitalization picks — Netflix, Expedia and Google — join Priceline, Amazon, Facebook, Alibaba and Zillow as advertising, retail and travel become the consistently dominant business models in the tech industry, snuffing out more and more competitors.
Facebook, Netflix, Amazon and Alibaba all benefit from the "video-ification" of the Internet, another trend that seems to be providing steady revenue to the top players, according to Mahaney. Meanwhile, more and more shoppers are destined to move online, he told CNBC.
"I think these secular winds are so well locked in for the next five, 10 years," Mahaney told CNBC's "Closing Bell."
Disclosure: RBC Capital Markets has provided these companies with non-securities services in the past 12 months.