Life360 Inc (ASX: 360) shares are flying higher in early afternoon trade on Tuesday. At the time of writing, the ASX tech stock is up 10.49% to $22.54 a piece.
Today's rally means the US-based software development company's shares are now 30.56% lower year to date and just 2% below where they were this time last year.
The tech stock has been caught up amid the tech-sector-wide sell-off over the past 6 months. This was driven by a growing fear that companies' core services could be replaced by AI. At the same time, there was concern that tech sector share prices had become overinflated.
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Why are Life360 shares flying higher today?
Today's share price reversal is great news for investors after the stock crashed 18% this time last week, off the back of its FY25 financial results.
Life360 delivered record growth in both its subscription and international segments, by 33% and 26% year-on-year, respectively. The company also said that it expects strong growth to continue in FY26. The news saw investors flock to the stock, with the share price spiking 15% in early morning trade on the same day. But then the share price took a significant U-turn, potentially due to investors taking their gains off the table.
Now that the dust has settled, it seems as if many are buying back into the growth stock.
There has been no price-sensitive news from the company today to explain the share price spike.
The rebound in tech stocks is evident across many stocks in the S&P/ASX 200 Information Technology Index (ASX: XIJ) today, raising questions about whether ASX technology shares have finally hit the bottom.
At the time of writing, the index is 1.75% higher for the day.
Are Life360 shares a buy, sell or hold for the remainder of 2026?
TradingView data shows that most analysts are extremely optimistic about Life360's outlook over the next 12 months.
Out of 15 analysts, 12 have a buy or strong buy rating. Another three have a hold rating on the stock.
The average target price is $39.82, implying a huge potential 77.13% upside at the time of writing. But some are even more bullish, expecting the stock to rocket 126.50% to $50.94 apiece over the next 12 months.
The team at Bell Potter recently confirmed its buy rating on Life360's shares with a price target of $40. The broker said it is pleased with the company's guidance for FY26 and sees now as a good time for investors to pick up shares in this rapidly growing company.
Morgan Stanley has an overweight rating and $50 target price on the stock. The team said it believes Life360 is well-positioned for strong long-term growth. They added that its defensive qualities and large user base make it difficult for AI to disrupt or replace the company's business model.
