Canaccord raises PT on U.S. streamers, says bullish on AI and ad tech

Life360

02/07/2025 11:41

** Shares of streaming companies Netflix NFLX.O and Spotify SPOT.N are up ~1% and~1.03%, respectively, in premarket trading

** Canaccord Genuity raises PT on NFLX to $1,525 from $1,380, SPOT to $850 from $775, and Life360 LIF.O to $75 from $70

** Brokerage continues to like several mega-cap companies making significant investments in AI, alongside select large- and SMID-cap stocks that stand out either for their strong growth potential or attractive valuations

** Brokerage also says SPOT and NFLX continue to lead with strong pricing power and growing ad tech capabilities, though Spotify is currently facing near-term pressure from a weakening dollar

** "While some investors may question returns justifying elevated AI-related spend, we believe underinvestment poses a greater risk, given past tech cycles (Internet, mobile, cloud), where early infrastructure leaders gained lasting advantages" says Canaccord

** Up to last close, stock of NFLX, SPOT, and LIF rose ~45%, ~61.5, and ~56% YTD, respectively

 (Reporting by Akriti Shah in Bengaluru)

 ((akriti.shah@thomsonreuters.com))