The S&P/ASX 200 Index (ASX: XJO) is down a painful 6.1% in morning trade today, but that could present a timely buying opportunity for this quality ASX 200 stock.
The company in question is Life360 Inc (ASX: 360).
The tech stock develops family-oriented software for location sharing. And it's been growing its user base and revenue amid strong adoption of its platform, particularly in US markets.
In 2024, the Life360 share price surged 198%.
But with Trump tariffs roiling global stock markets, the ASX 200 stock has plunged 27% in 2025.
"Escalating geopolitical tensions, trade wars, and the moving feast that is US tariff policies have cast a shadow over the outlook [of equities], raising concerns about a recession," said Kelli Meagher, portfolio manager at Sage Capital (courtesy of The Australian Financial Review).
"The market had been looking very expensive, particularly in sectors such as technology. The sell-off has taken some of the froth out of the market," she added.
According to Meagher:
We believe there may be more downside to come in the short term as markets adjust to the new order, but we are actively watching for buying opportunities.
Our focus remains on companies with a clear growth trajectory, strong control over their own destiny, and not overly exposed to tariffs or shifts in consumer sentiment.
One stock we think fits this description is Life360.
Why this ASX 200 stock could keep delivering strong growth
"The Life360 app is the most-used social networking app daily in the US after Facebook and WhatsApp, with a rapidly growing user base of 80 million worldwide," Meagher said.
"Its key competitive advantage lies in its leading location tracking technology, which is well ahead of its competitors, including Apple's Find My Friends."
As for the growth outlook for the ASX 200 stock, Meagher noted:
Life360 has grown revenue by 35% per annum over the past five years as more and more users see value in the increasing functionality of the app and switch from the free version to a paid subscription or move to higher tier plans.
The company is expected to continue growing at 20% or more for the foreseeable future as it continues to penetrate the US, its biggest market, as well as rolling out globally and introducing new products that can monitor the safety of pets and elderly relatives.
And that growth won't come with an eyewatering price tag.
"Its scalable technology allows the company to grow revenue at minimal extra cost, positioning it well for continued success," Meagher said.
"It is also harnessing artificial intelligence, not only for innovating the core app but also to enable targeted advertising that provides an additional revenue stream."
The ASX 200 stock also looks to tick one of Warren Buffett's key criteria for investing in a company.
"A great manager is as important as a great business," Buffett famously advised.
As for Life360, Meagher said, "With a quality management team including an enthusiastic founder, we believe Life360 can continue to deliver strong earnings growth for many years to come."
