Down 40% in 2026, should you buy the big dip in Life360 shares?

Life360 Inc (ASX: 360) shares are charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) location-sharing software developer closed yesterday at $18.94. In early afternoon trade on Wednesday, shares are changing hands for $19.55 apiece, up 3.2%.

For some context, the ASX 200 is up 0.2% at this same time.

Despite today’s welcome outperformance, the ASX tech stock remains down a sharp 39.8% since the opening bell sounded on 2 January.

Among the headwinds, Life360 shares have been caught up in the broader tech stock sell-off amid investor concerns that artificial intelligence (AI) could replace many of the services these companies currently offer.

Which brings us back to our headline question.

Should you buy Life360 shares today?

Baker Young’s Toby Grimm recently ran his slide rule over Life360 shares (courtesy of The Bull).

“Life360 is a leading family safety and location sharing platform operating across the US, UK and Australia,” he said.

Life360 released its results for the full 2025 calendar year on 3 March. Commenting on those results, Grimm noted:

The company delivered better-than-expected full year results in 2025, highlighted by subscription revenue increasing 33%. Hardware remains an important long term growth option, as it helps lock users into paid subscriptions.

Despite reporting solid growth metrics for 2025, Life360 shares crashed 17.6% on 3 March.

But Grimm doesn’t believe investors should sell their shares. Explaining his hold recommendation, he concluded:

We believe the magnitude of the recent share price decline has been excessive given the strength across most of Life360’s core subscription business. Accordingly, we remain comfortable holding this high quality, fast growing and profitable company at current levels.

What’s the latest from the ASX 200 tech stock?

As mentioned, Life360 shares plunged a sharp 17.6% on the day the company reported its full-year results.

On top of the 33% year on year lift in revenue to US$489.5 million that Grimm pointed out above, sales came despite the company achieving 105% growth in its adjusted earnings before interest, taxes, depreciation and amortisation EBITDA to US$93.2 million.

Commenting on the results on the day, Life360 CEO Lauren Antonoff said, “For the first time in company history, we achieved annual net income, reflecting both the fundamental strength of our freemium model and the operating discipline we’ve built over the past several years.”

As for the rapid advancement of AI, Antonoff added:

We are deep into the transition to become an AI-first company. Organization-wide active AI adoption has grown to over 95%, accelerating our execution and expanding what’s possible for families on our platform.

We see AI as an opportunity to accelerate our path and deepen our moat. Our core use case is durable because it is anchored in real people moving through the physical world, generating data that further deepens our advantage.

The post Down 40% in 2026, should you buy the big dip in Life360 shares? 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.