Life360 Inc (ASX: 360) shares are tumbling today.
Shares in the S&P/ASX 200 Index (ASX: XJO) location sharing software developer closed yesterday trading for $23.19. During the Tuesday lunch hour, shares are changing hands for $22.49 apiece, down 3%.
For some context, the ASX 200 is up 0.1% at this same time.
Taking a step back, Life360 shares have slumped 29.7% over the past 12 months.
The company has faced a few headwinds, including the broader selling pressure that hit many Aussie and global Software as a Service (SaaS) stocks. That pressure followed growing investor concerns that artificial intelligence could replace a lot of the services these companies offer.
More recently, the ASX 200 tech stock has been enjoying a strong rebound. Indeed, shares are up 18.6% over the past month, smashing the 1.4% gains delivered by the benchmark index over this same period.
And looking ahead, Bell Potter Securities' Christopher Watt believes Life360 is well-placed to keep outperforming in the months ahead (courtesy of The Bull).
Here's why.
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Why Life360 shares could keep marching higher
"This information technology company provides a mobile networking safety app for families," Watt said.
Citing the first reason he's bullish on the ASX 200 stock, he noted, "Active user growth is rebounding following a technical issue, while paying circle growth, which drives revenue, recently exceeded expectations."
As for the second reason you might want to buy Life360 shares today, Watt added, "Guidance has been upgraded. Once focus returns to paying circles, I expect a re-rating to follow."
Then there's the recent share price rebound and the company's pending half-year (H1 2026) results.
According to Watt:
The upcoming August result is a catalyst. The company has been enjoying strong price momentum, with the shares rising from $17.91 on May 20 to trade at $22.54 on June 18.
What's the latest from the ASX 200 tech stock?
The last release deemed price-sensitive to Life360 shares was the company's Q1 2026 update on 12 May.
Among the highlights, the company reported quarterly revenue of US$143.1 million, up 38% from Q1 2025. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$17.1 million were up 7%.
As for the guidance upgrade Watt mentioned above, Life360 raised its full-year 2026 revenue guidance to between US$650 million and US$685 million. That was up from prior revenue guidance of US$640 million to US$680 million.
Management also expects to deliver improved earnings, boosting Life360's full-year adjusted EBITDA guidance to US$130 million to US$140 million, up from the prior guidance of US$128 million to US$138 million.
