Both Life360 Inc (ASX: 360) and Pro Medicus Ltd (ASX: PME) shares have taken a heavy hit, with each down around 60% from their 52-week highs.
That sort of decline can sound the alarm bells. But when I step back, I still see two companies with strong growth engines, large addressable markets, and business models that still appear intact.
So, if I had $2,500 to invest today, I would be comfortable splitting it between these two.
Life360 shares
Life360 is easy to underestimate because of what it looks like on the surface. It is often seen as just a location-sharing app.
But the reality is much broader. The company now has a global network of nearly 100 million monthly active users and operates across more than 180 countries, with strong engagement and retention across its user base.
What I like is how this platform is evolving. Life360 is building a full ecosystem around family safety and coordination. That includes subscription services, hardware like Tile devices, and an expanding advertising and data platform.
This creates multiple ways to monetise the same user base over time.
Importantly, penetration is still relatively low in many markets. The company is still in the growing or scaling phase across much of its global footprint, which suggests there is meaningful runway ahead.
I also think the freemium model is a major advantage. A large free user base feeds into paid subscriptions, advertising, and partnerships. That creates a flywheel effect that can strengthen over time.
When I combine that with strong engagement, network effects, and new monetisation layers, I think the long-term opportunity remains compelling.
The recent share price weakness looks more like a reset in sentiment than a breakdown in the underlying business.
Pro Medicus shares
Pro Medicus sits in a very different space, but the appeal is just as clear to me.
This is a global healthcare imaging software company with a highly specialised product in Visage 7. It has been built over decades and incorporates deep domain expertise that is not easy to replicate.
What I find particularly interesting is the strength of its pipeline and contract momentum.
The company recently secured multiple new deals across major hospital systems, with total contracted volumes now exceeding $1 billion over the next five years.
That gives it strong revenue visibility. At the same time, Pro Medicus continues to expand its footprint across the US and Europe, with high-profile institutions helping to reinforce its position in the market.
Another key point is the scalability of the model. This is a capital-light, software-only business with very high margins and strong operating leverage. As more clients are added and existing ones expand usage, profits can grow faster than revenue.
I also think concerns around AI disruption have been overdone in this case.
Management has been clear that its platform is highly specialised and deeply integrated into hospital workflows, making it difficult to replicate. In fact, AI may end up enhancing productivity rather than replacing the need for its systems.
To me, that reinforces the durability of its competitive position.
Foolish takeaway
Both Life360 and Pro Medicus shares have seen sharp pullbacks despite continuing to deliver strong results.
Life360 is building a global platform with multiple monetisation levers and significant runway still ahead. Pro Medicus continues to execute in a specialised, high-margin niche with strong demand and long-term contracts.
They are very different businesses, but they share one key trait. Both are still growing into large opportunities. That is why I would be comfortable putting $2,500 to work across them today.
