Don't believe the Facebook, Alphabet slowdown fears, analyst says

Big technology companies like Alphabet (GOOGL) and Facebook (FB) should enjoy steady growth despite concerns about a slowdown, one analyst said Wednesday.

"We've seen very consistent growth, at least from the leaders in the Internet space," Mark Mahaney, RBC Capital Markets' lead internet analyst, said on CNBC's "Squawk Alley."

Analysts at RBC are calling Google parent Alphabet a good buy, although the market is pessimistic about the company's performance in the back half of the year.

"There's a deceleration debate on Google, as there is on Facebook, and almost a certainty in the markets that growth rates have to decelerate sharply," Mahaney said Wednesday. "We don't think that's the case."

Mahaney said that assets like video platform YouTube are becoming more material for Google.

"This sustains as a 20 percent revenue grower with expanding margins in the core Google business for their foreseeable future," Mahaney said. "We like the stock."

Mahaney said that Facebook is a reasonable buy, but does not set up as well as Google for the end of the year.

He also mentioned that what's good for larger tech companies isn't necessarily good for those that haven't enjoyed as much success.

"What's good for Google and Facebook has not been good for the Yahoos and the Twitters of the world," Mahaney said.

He said that Netflix (NFLX) is one of the smaller companies struggling. The video streaming service announced earlier this year that it will increase pricing. Mahaney said that Netflix's problem can be fixed by increasing the value proposition of the service.

"As they roll out more original content, they build up their value proposition. We think that will get them back to strong [subscriber] growth," Mahaney said.