Are tech giants facing pressure to wind down? Strategists caution of big tech's potential decline.

• According to Viktor Shvets, head of global and Asian strategy at Macquarie, large consumer tech platforms such as Facebook and Amazon are in the "sunsetting" phase.
• According to Shvets, the world is moving from second-generation to third-generation technologies, and the question arises: which tech companies will endure this significant transition.
• Roderick Snell, an investment manager at Edinburgh-based Baillie Gifford, notes that while China's big tech firms are facing intense regulatory pressure, they are also facing stiff competition.

Strategists advised investors to exercise caution when investing in U.S. and Chinese internet giants, as these companies are facing numerous challenges.

Macquarie, an investment bank, stated that large consumer tech companies such as and are in the "sunsetting" phase.

According to Viktor Shvets, head of global and Asian strategy at Macquarie Capital, companies like Meta (Facebook-parent) and Alibaba are facing numerous issues and may be sunsetting. He also mentioned other companies such as Apple and JD.com.

On Thursday, CNBC's "Street Signs Asia" reported that headwinds can include major economies of scale, as well as significant political and social pressure, according to Shvets.

Be cautious of large digital platforms, but there are numerous profitable opportunities in the tech universe, as he stated.

In recent years, both American and Chinese tech companies have faced regulatory oversight.

Chinese authorities enacted legislation targeting various areas, including anti-monopoly and data protection, in the past year.

The Hang Seng Tech index has fallen more than 40% since its Feb. 11 close, as shares of and were sold off last year due to regulatory scrutiny.

In the US, President Biden issued an executive order last year to combat anti-competitive practices in various sectors, including Big Tech.

Next generation tech bets

Shvets stated that the world is moving from second-generation to third-generation technologies and the question arises: Which tech companies will endure this significant shift?

"Only one or two companies typically survive transitions, and among major technology companies, only one, such as Apple, has moved from first to second generation," he stated.

Which of the large digital platforms has the greatest potential to transition, Meta, Google, or Alibaba? It is currently unclear, and it is uncertain which company to bet on.

Late last year, the buzz around Web 3.0, or the next generation of the internet, started growing, although Shvets did not specify what the third-generation tech transition will entail.

A virtual world known as the metaverse exists where humans interact through three-dimensional avatars. In this space, individuals can participate in various virtual activities such as gaming, concerts, or live sports, which can be controlled using virtual reality headsets or augmented reality gear.

The metaverse is set to receive new hardware products and software services from Facebook-parent and other companies.

Meta, the social networking giant, changed its name to reflect its ambition to lead the future of the internet in a virtual world. However, its stock plummeted in early February following the company's forecast of weaker-than-expected revenue growth in the next quarter.

In the fourth quarter, Meta's Reality Labs segment generated $877 million in revenue, despite an operating loss of $3.3 billion.

‘Ferociously competitive’ markets in China

Roderick Snell, an investment manager at Edinburgh-based Baillie Gifford, states that while China's big tech companies are facing intense regulatory pressure, they are also facing significant competition.

An analyst stated that his firm has been underweight on big tech companies such as Alibaba and Tencent for the past two years, indicating that he believes their stock will not perform as well compared to their peers in the market.

The most challenging issue for companies like Alibaba and Tencent in China, according to him, is the highly competitive market in emerging markets.

Tencent's 40% market share in social media advertising has been taken over by other players in the past three or four years, according to Snell. My biggest concern is the increasing competition, so we have been underweight and keeping our opportunities elsewhere.

He stated that there were no plans to alter it in the future.

— CNBC’s Laura Feiner contributed to this report.