Market Overview

RBC's Mark Mahaney Feels Google Is A Better Pick Than Facebook Right Now

RBC's Mark Mahaney Feels Google Is A Better Pick Than Facebook Right Now
Related AMZN
The Customer Is Always Right: This ETF Is Tailored To Customer Satisfaction
10 Most Innovative States In America
The View From The Top (Seeking Alpha)
Related GOOGL
Julian Assange's 'Sonic Screwdriver': Latest WikiLeaks Disclosure Says CIA Injected Spy Software Into Mac Chips
A 22-Year-Old College Student In India Figured Out How To Make Quantitative Investing Models By Googling It
The View From The Top (Seeking Alpha)

With the second-quarter tech earnings season almost over, RBC Capital Markets' Mark Mahaney came out with his quarterly review of technology stock.

Mahaney was on CNBC recently to discuss his current favorite picks in the sector, which still includes, Inc. (NASDAQ: AMZN) on the top.

He also discussed why he is more bullish on Google Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) than Facebook Inc (NASDAQ: FB) going forward.

Amazon Still The Leader

"I think, actually, fundamentals were very much intact if you look at the year-over-year growth rates for the leading online advertising, travel, retail names," Mahaney said. "There were a few inflection points' stories. At the top, that list has to be Amazon, revenue growth acceleration and margin expansion."

Related Link: Why Alphabet Is A "Terrific" Move For Google

Google Over Facebook

Mahaney was asked if he is picking Google over Facebook solely because of the relative valuation of both companies. He replied, "It's mostly that. The risk-reward here looks just incrementally better for Google than it does for Facebook; we still like both names.

"If you look back over the 12 months, we have had a really nice rally in Facebook's stocks twice, last year and then going into the June quarter print."

Mahaney continued, "Facebook continues to be a good long, the upside though for us is kind of 10–15 percent. Google has a couple of catalysts and some of them are going to be negative, by the way – the European issue and maybe Apple. But it got one major catalyst in terms of cash returns to the shareholders, which means you can get 20 to 25 percent return. So, it's really the relative risk-rewards on the stock," Mahaney concluded.

Image Credit: Public Domain

Posted-In: Mark Mahaney RBC Capital VetrAnalyst Color CNBC Top Stories Media Trading Ideas Best of Benzinga


Related Articles (AMZN + FB)

View Comments and Join the Discussion!