Mark Mahaney's Top Small- And Large-Cap Picks For 2017

RBC Capital Markets' Mark Mahaney is considered to be one of the top internet analysts and was a guest on CNBC to share his top picks for 2017.

Top Small-Cap Pick

Mahaney's top pick among small-caps is Yelp Inc YELP. The analyst noted that he upgraded the stock last December and has a $55 price target.

Mahaney believes Wall Street's consensus estimates on the stock is 10 percent too low and the stock can gain as the Street catches on and revises their estimates higher.

The analyst noted there are few companies within the small and large-cap space that boast a similar revenue and margin expansion story for 2017 other than Yelp.

Mahaney believes Yelp will see this growth from its new feature called 'Request a Quote' which allows companies the opportunity to give consumers an exact quote for a requested service.

Large-Cap Picks

Moving on to the large-cap picks, Mahaney pointed out that many of the companies under his coverage are trading near their respective 52-week or all time-highs. Nevertheless, Netflix, Inc. NFLX is his top pick as the streaming video provider is also considered to be a growth story during 2017.

Specifically, Netflix is expected to add more subscribers in 2017 compared to 2016. The company will also introduce a lot of new content as well as new international launches.

Facebook Inc FB is Mahaney's second pick among large-caps as Wall Street analysts are also under-estimating the social media company's earnings for the coming year. In addition, Facebook has two messaging platforms with one billion users, WhatsApp and Messenger, which it hasn't even begun to monetize and even the "slightest signs" of monetization initiatives for the platform will provide a boost in the stock.