3 Tech Picks To Watch, According To RBC's Mark Mahaney

The COVID-19 pandemic ushered in permanent changes to the workplace environment and consumer behavior and this should benefit a small handful of stocks, RBC Capital Markets internet analyst Mark Mahaney said on CNBC.

Looking Beyond Monster Stocks: Several "monster stocks" like Shopify Inc SHOP generated superior returns versus the broader market and now may be the time to look at "recovery stocks," Mahaney said. Investors should pay attention to tech stocks that have lagged their peers' year-to-date basis and are only now starting to recover.

The top three picks include ride-hailing company Uber Technologies Inc UBER, online travel company Booking Holdings Inc BKNG and Facebook, Inc. FB as a play on the ongoing recovery in the online advertising market.

TikTok Talk: TikTok is benefiting from massive adoption and represents an attractive asset as part of a potential acquisition, Mahaney said. TikTok is a one-of-its-kind mobile-first app with an excellent algorithm that makes it highly addictive.

Facebook's new TikTok-like service called Reels isn't necessarily better than TikTok but it's just as compelling, the analyst said. As such, if TikTok is ultimately banned, users will "very quickly" get used to living with Reels as it is a great product right out of the gate.

Meanwhile, the odds of TikTok getting banned is "much greater than I would have thought" to be even just a few weeks ago, Mahaney said.

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