Life360 Inc (ASX: 360) shares crashed 18% on Tuesday and remained relatively flat, rising just 0.1% over the course of the day on Wednesday.
On Wednesday, the stock closed at $20.38 a piece. This means Life360 shares are now down 24.35% over the past month, have dived 37.22% for the year-to-date, and have shed 63.24% since soaring to an all-time high of $55.87 in October last year.
Life360 shares are currently sitting 9.1% below where they were last year.
The latest price crash is significant and some investors are shaken.
The question is, is there more to come? Or has this week's nosedive created a once-in-a-lifetime buying opportunity to get the stock at an incredibly cheap price.
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What happened to Life360 shares?
The US-based software development company posted its FY25 financial results on Tuesday morning, ahead of the market open. Life360 delivered record growth in both its subscription and international segments, by 33% and 26% year-on-year respectively.
Operating expenses increased by 26%, but fell as a percentage of revenue, highlighting management's focus on efficiency as the business grows.
Life360 also said that it expects strong growth to continue in FY26, guiding for global MAU growth of 20%, revenue between US$640 million and US$680 million (up 31–39%) and a 25% increase in subscription revenue.
Management also flagged that earnings will be weighted more heavily to the second half of the year due to investment and seasonality.
The news saw investors flock to the stock, with the share price spiking 15% in early morning trade. But then the share price took a significant u-turn.
The S&P/ASX All Technology Index (ASX: XTX) has also been in a sea of red this week after conflict in the Middle East smashed Australian shares across multiple sectors.
Is this a once-in-a-lifetime buying opportunity for investors?
Analysts seem to think so.
TradingView data shows that most analysts are incredibly bullish on the outlook for Life360 shares over the next 12 months.
Out of 15 analysts, 12 have a buy or strong buy rating and two have a hold rating on the stock. But they are unanimous in that all of them expect attractive upside ahead.
The average target price for Life360 shares is $39.79, which implies a huge potential 95.24% upside at the time of writing.
But some are even more bullish, expecting the stock to rocket nearly 150% to $50.73 apiece over the next 12 months.
The team at Bell Potter recently confirmed its buy rating on Life360's shares with a slightly trimmed price target of $40.00 (from $41.50). The broker said it couldn't explain this week's share price weakness but added that it appears to be an opportunity for investors to load up on the company's shares.
If these potential upsides are anything to go by, at their current share price, Life360 shares are a one-of-a-kind opportunity for investors who want to strap into the growth stock for cheap, ahead of the next rocket launch.
