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

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