Can Life360 shares recover from the AI fuelled sell-off?

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

Shares in the S&P/ASX 200 Index (ASX: XJO) location sharing software developer closed on Friday trading for $20.85. In early afternoon trade on Monday, shares are swapping hands for $21.17 apiece, up 1.5%.

For some context, the ASX 200 is down 0.3% at this same time.

Taking a step back, Life360 shares have underperformed the benchmark over the past 12 months, up 2.5% compared to the 9.6% one-year gains delivered by the benchmark index.

If you’ve been following along with the ASX tech company, you’ll know the stock was on tear right up until early October.

Indeed, on 3 October, Life360 notched a record closing high of $55.44 a share.

But not long after recording this all-time high, the stock got caught up in the broader global selling pressure that hit a lot of Software as a Service (SaaS) stocks.

Commonly referred to as the SaaSpocalypse, Life360 and many other SaaS stocks tumbled amid investors concerns that artificial intelligence, or AI, could replace a lot of the services these companies offer.

Which brings us back to our headline question.

With the ASX 200 tech stock down 61.8% from its October closing highs, is a recovery on the horizon?

Can life360 shares shake the AI blues?

MPC Markets’ Jonathan Tacadena recently ran his slide rule over Life360 shares (courtesy of The Bull).

“This information technology company provides a mobile networking safety app for families,” he noted.

Addressing the stock’s rebound potential from the past months’ AI-driven selldown, Tacadena said:

In our view, fears of artificial intelligence severely impacting software-as a-service companies are fading, and a lot of our preferred names have rebounded strongly. We expect Life360’s share price to recover further moving forward.

Connecting the dots, Tacadena issued a hold recommendation on Life360 shares.

He concluded:

Full year revenue in 2025 was up 32% on the prior corresponding period. It expects revenue growth in full year 2026 to be driven by its core subscription business and the scaling of its advertising platform.

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

Life360 reported its fourth quarter (Q4 2025) results on 2 March.

Highlights for the quarter included a 26% year-on-year increase in revenue to US$146.0 million.

The company also achieved strong earnings growth, with adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$32.4 million up 53% from Q4 2024.

Turning to the balance sheet, the ASX 200 tech stock ended the quarter with cash, cash equivalents and restricted cash of US$495.8 million.

Life360 shares closed up 0.6% on the day of the results release.

The post Can Life360 shares recover from the AI fuelled sell-off? 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.