"If they continue to do that kind of thing, and they need to do it, they'll escape the kind of the death star that is Google and Facebook," RBC Capital Markets' lead internet analyst said on "Squawk Box."
The feature, released on the iPhone late last month, lets users see their friends' location on a map. With Facebook's cloning of some of the Snapchat's most popular themes, Snap has had to come up with fresh features as its stock price falls.
Snap will also have to compete with the Facebook-Google dominance in the mobile advertising space, he said.
On Friday, Mahaney told CNBC he doesn't see a "sustained sell-off" in the tech sector, despite last week's dip.