RBC's Mark Mahaney Talks FANG Trade And Other Tech Stocks

RBC Capital Market's lead internet analyst Mark Mahaney was a guest on CNBC's "Squawk Box" segment on Friday to talk about the "FANG" stocks and their performance over the past few weeks.

Oh, What's In A FANG?

The "FANG" group is an acronym that groups together some of the hottest tech stocks of 2015, including Facebook Inc (NASDAQ: FB), Amazon.com, Inc. (NASDAQ: AMZN), Netflix, Inc. (NASDAQ: NFLX) and Google/Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL). Mahaney noted that the group outperformed the overall technology sector throughout 2015 and for the most part continued to do so this year.

Recent Underperformance

However, Mahaney noted that the group underperformed since President-elect Donald Trump won the presidential race. All four stocks saw losses of 5 to 10 percent. The analyst attributed the declines to a shift away from technology stocks and into sectors that are expected to outperform under a Trump administration such as healthcare, industrials and financials.

Politics And The Market

The analyst continued that the Trump administration will bring in new policy changes that will be incrementally beneficial to sectors like healthcare, industrials and financial services. As such, fund managers and investors will look toward these sectors, and it is only logical that some of the top performers will see some profit taking and outflows.

Mahaney's top picks in the technology sector include Netflix, Facebook and Priceline Group Inc (NASDAQ: PCLN). All three of these stocks have had a good run as of late, so the analyst isn't necessarily "pounding the table" on these names.