Why is the Life360 (ASX:360) share price rocketing 16% higher?

This tech share is rocketing higher on Wednesday…

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Key points

  • Life360 shares are rocketing higher on Wednesday
  • This follows a rebound in the tech sector today
  • Bell Potter believes Life360's shares can keep rising from here

It has been a very good day for the Life360 Inc (ASX: 360) share price.

At one stage today, the location technology company’s shares were up as much as 16% to $6.28.

The Life360 share price has given back some of these gains but remains up 12% at $6.07 at the time of writing.

Why is the Life360 share price shooting higher?

The catalyst for the rise in the Life360 share price on Wednesday has been a rebound in the tech sector. For example, in early afternoon trade, the S&P ASX All Technology Index (ASX: XTX) is up a sizeable 3.2%.

The gains have been strongest among loss-making tech shares, which were hit the hardest following the tech selloff earlier this year.

One leading broker that would approve of the Life360 buying frenzy today is Bell Potter. Earlier this month, the broker named the company as one of its top three picks in the tech sector.

It commented: “Life360 (360): Also remains a key pick and we believe has been oversold as, despite currently being loss making, has ample cash to fund it through to cash flow breakeven or positive in 2023 or 2024 while maintaining strong top line revenue growth and realising the synergy benefits from the recent Tile acquisition.”

Bell Potter has a buy rating and $10.00 price target on its shares.

Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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