After tanking 26% in a month should you buy Life360 shares now?

Life360 Inc (ASX: 360) shares are sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) tech stock closed yesterday trading for $38.31. In early afternoon trade on Wednesday, shares are swapping hands for $37.54 apiece, down 2%.

For some context, the ASX 200 is up 0.1% at this same time.

Life360 shares have come under selling pressure since notching new all-time closing highs of $55.44 on 3 October. Over the past month, shares have fallen 26%.

Still, investors who bought the ASX share 12 months ago will be sitting on gains of 42% today. And early investors who bought the ASX tech share five years ago will have enjoyed an 871.8% share price rise, despite the recent sell-down.

Which brings us back to our headline question…

Are Life360 shares a good buy today?

Medallion Financial Group’s Stuart Bromley recently ran his slide rule over the ASX 200 tech share (courtesy of The Bull).

“Life360 is the leading family safety and location sharing platform across the US, UK and Australia,” Bromley said. “It operates a capital-light, highly scalable subscription model with growing ad partnerships.”

According to Bromley:

Despite recent share price weakness tied to investor concerns about its US$120 million acquisition of Nativo amid a rotation out of technology stocks into defensive companies, the business fundamentals of Life360 remain strong.

Revenue is growing at an impressive pace, subscriber numbers continue to accelerate, and management has upgraded full year guidance.

Indeed, at its third-quarter results (Q3 2025), the company reported a 34% year-on-year increase in revenue for the three months to US$124.5 million. On the bottom line, net profit of US$9.8 million was up more than 27% from Q3 2024.

Despite these strong metrics, Bromley isn’t quite ready to pull the buy trigger on Life360 shares just yet, issuing a hold recommendation.

“We view current share price levels as an attractive opportunity to at least hold or accumulate a quality growth business with a long runway ahead,” he concluded.

What’s happening with the ASX 200 tech share’s Nativo acquisition?

Life360 shares closed down 5.2% on 11 November, and tumbled another 13.1% the following day, with some investors selling the ASX share following news that the company had inked an agreement to acquire advertising technology company Nativo for US$120 million.

However, Life360 CEO Lauren Antonoff expects the acquisition to boost the company’s performance over time.

Commenting on the Nativo acquisition on the day, Antonoff said:

Acquiring Nativo is an exciting step forward as we build a durable, mission-aligned advertising business. This acquisition accelerates our roadmap, adding capabilities that typically take platforms years to develop.

It allows us to scale faster and bring high-quality, contextual advertising to market sooner, all while enhancing, not disrupting, the Life360 member experience.

The post After tanking 26% in a month should you buy Life360 shares now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.