Amazon, Netflix & Facebook: RBC's Top Picks For 2015

When it comes to internet and technology stocks as a whole, RBC’s Mark Mahaney is considered an authority on the topic due to the formidable reputation he has built on the Street by being correct most of the times.

Mahaney was recently on CNBC to discuss the internet stocks he expects to do well in 2015.

“Top of the list for us is Amazon.com, Inc. (NASDAQ: AMZN), then Netflix, Inc. (NASDAQ: NFLX), then Facebook Inc (NASDAQ: FB). I consider those first two something of a contrarian call, they both underperformed this year, particularly Amazon, but we like them, we think there is a better setup both in terms of valuation and fundamentals on Amazon, that’s why it’s our top pick,” Mahaney said.

Isn’t Netflix A Risky Bet?

“Well, near-term it obviously is. The market is reacting negatively to the negative reviews that ‘Marco Polo’, but this company is hedging itself, hedging its content, its giving itself something differentiated. People always compare Netflix with HBO, but it has never been HBO, it has always offered a lot of it family oriented content, rarely ever exclusive content.”

Mahaney continued, “So, what they are trying to do is build their own retail model, if you will, for content and on top of that putting in exclusive, unusual content and by the way Netflix with the size of its subscriber base, they are going to be 50 million subscribers, they don’t need every show o be a hit, what they are going to try to do is to appeal to a bunch of different demographics and they have got a broader range of demographics than anybody else out there.”