Life360 Inc (ASX: 360) shares are climbing higher in lunchtime trade on Wednesday.
At the time of writing, the shares are up 4.46% to $18.72 a piece.
It's welcome news for investors after the US-based software development company's shares crashed 11% yesterday following another tech sell-off at the same time as the company released its first-quarter FY26 results announcement.
Despite today's uptick, the shares are still 42% lower for the year-to-date and are now trading 66% below an all-time high of $55.87 recorded in October last year. The tech shares are also 31% below trading levels seen this time last year.
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What sent the shares tumbling?
The tech stock has been caught up amid the tech-sector-wide sell-off over the past 8 months.
Investors ditched their tech shares amid a growing fear that companies' core services could be replaced by AI. At the same time, there was concern that tech sector share prices, including Life360, had become overpriced.
The shares crashed another 18% following its FY25 results announcement in March.
It looks like the tech sector suffered another sector-wide sell off yesterday, with tech shares down across the board.
The sentiment shift overshadowed Life360's latest financial results announcement, which it posted ahead of the market open on Tuesday morning.
Life360 reported a 38% increase in its total revenue for the quarter, primarily driven by a 32% increase in subscription revenue and 36% increase in core subscription revenue.
The company also upgraded its FY26 guidance. It now expects consolidated revenue in the range of US$650 million to US$685 million, up from previous guidance of US$640 million to US$680 million. This implies year-on-year growth of 33% to 40%.
Life360 also lifted its adjusted EBITDA guidance to a range of US$130 million to US$140 million, up from US$128 million to US$138 million previously. This implies an expected margin of around 20%.
Why are Life360 shares climbing higher again today?
There has been no price-sensitive news out of the company today to explain the turnaround.
The rebounding share price is most likely due to investors buying back into the stock after yesterday's crash.
Are the shares a buy, sell or hold now?
Analysts are very bullish about the outlook for Life360 shares over the next 12 months, with consensus of a strong upside ahead.
TradingView data shows that 13 out of 14 analysts have a buy or strong buy rating on the shares. The average $31.83 target price implies a potential 71% upside at the time of writing. But some think the shares could rocket another 119% to $40.71.
Bell Potter has confirmed its buy rating on the family safety and location technology company's shares, although the broker trimmed its target price to $32.59.
The broker noted that its first quarter FY26 revenue and adjusted EBITDA were 4% and 18% ahead of its forecasts and 4% and 14% ahead of market consensus.
