After their stocks have taken a beating, four high-quality tech companies are worth buying, Internet analyst Jordan Rohan said Tuesday.
"It's not just about their price in the market, which of course can swing based on the market's appetite for risk," he said. "Rather, I'm also pointing to earnings-related outperformance, or in the case of Yahoo (YHOO), a really easy-to-identify catalyst in the Alibaba IPO, which I still think will happen without a hitch in the third quarter.
"Therefore, I think investors are going to be forced to recalculate how cheap these companies are. They're essentially cheaper than they were a year ago."
On CNBC's " Halftime Report ," Rohan, who is a managing director at Stifel Nicolaus, shared his top picks: Facebook (FB), Netflix (NFLX), RetailMeNot (SALE) and Yahoo. (Disclosure:Stifel Nicolaus makes a market in all four stocks.)
Yahoo, he added, was a "sum-of-the-parts story," largely based on the company's share of Alibaba, China's giant e-commerce site.
"I believe Alibaba eventually is worth over $200 billion with a fairly modest 20-times earnings multiple that supports that claim," he said. "There's a lot of upside here."
Rohan said he was "disappointed" by Facebook's "experimental acquisitions." Rohan didn't specify the deals, but Facebook acquired instant-messaging service WhatsApp in February for $19 billion and virtual-reality developer Oculus Rift for $2 billion last month.
"I couldn't even come close to explaining what they paid there," he said. "But that said, I don't think they would have done this if they weren't about their core business, and I expect the upside to be another inflection-point quarter, where you see acceleration on a year-over-year basis."
Netflix, too, was in a good position, according to Rohan.
"I think there are a lot of me-too stories trying to climb into Netflix's core business, but at the end of the day, the real story remains Netflix," he said. "And I think the subscriber growth number that you'll hear both in the fundamentals and the guidance will be very, very strong."
Rohan said that he wasn't scared off by recent selloffs in tech.
"By the time the broader media tells me that they're going to continue to go down forever and you should hide and buy gold and never buy anything that grows, right before an earnings season, usually some of that's dialed in," he said.
"I'm not a believer that markets go straight up or straight down. I've been in this business long enough, covered Internet stocks for 15 years, and believe that high-quality growth stories, trading at less than one times their growth with earnings outperformance, that's a pretty good recipe for stocks that want to go up."
- By CNBC's Bruno J. Navarro .