Stock Pick

Buy this ASX tech share now and hold it for 10 years

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If there’s one S&P/ASX 200 Index (ASX: XJO) share that has captured the imagination of growth investors in recent years, it’s Life360 Inc (ASX:360).

But after a period of sharp losses for the ASX tech share, investors are asking the obvious question: can the growth story keep running?

True tech script

Once known primarily as a family-tracking app, the ASX tech share has evolved into a global digital safety platform built on subscriptions, data insights, and advertising. Life360 now positions itself as a broader ecosystem play, connecting families through location sharing, crash detection, identity protection, and emergency assistance services.

True to the tech script, Life360’s share price has delivered big moves in both directions. Over the past 6 months, the ASX tech share stock has fallen 44%, pulling its market capitalisation back to roughly $6 billion. The start of 2026 has also been shaky, with the shares down close to 23% year to date at $24.72 at the time of writing.

Share price explosion

That said, context matters. Over the past five years, the ASX 200 tech share has surged more than 450%, rewarding long-term holders who backed the platform’s global expansion and subscription push early on. The recent pullback reflects valuation compression and shifting risk appetite rather than a collapse in the underlying business.

Operationally, the company continues to execute. Monthly active users have climbed toward 100 million globally, providing a vast funnel for subscription upgrades. Paid circles — its core subscription product — continues to grow, driving higher recurring revenue and improving operating leverage.

Layering ads to subscriptions

Management has also sharpened its focus on monetising free users through advertising and data partnerships. That monetisation strategy has accelerated through acquisitions and integrations. The Nativo deal, in particular, expands Life360’s higher-margin advertising capability.

By layering ads on top of subscriptions, the company aims to diversify revenue and lift average revenue per user without relying solely on subscriber growth.

Still, risks remain. Life360 pays no dividend, reflecting its growth-first strategy. Profitability has improved, but the model depends on sustained subscription growth and effective monetisation of non-paying users.

Advertising and data initiatives offer upside, yet they also invite privacy scrutiny and competition from larger technology players.

What next for the ASX tech share?

Analyst sentiment remains broadly constructive despite the share price weakness. Consensus forecasts compiled by TradingView lean toward a buy rating for the ASX tech share, with average 12-month price targets of $42.80, implying significant upside from current levels.

Some forecasts point to potential upside of 70% to nearly 100% if the company delivers on its growth plans.

Bell Potter recently reiterated a buy rating and set a $45 price target. This points to an 82% upside at current price levels.

The broker highlighted strong growth in paying circles and expects further conversion of monthly active users into subscribers. It also sees expansion into adjacent safety and advertising markets as a meaningful long-term driver.

The post Buy this ASX tech share now and hold it for 10 years appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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.

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