Why are Life360 shares soaring 10% higher today?

Life360 Inc (ASX: 360) shares are storming higher on Tuesday.

At the time of writing, the shares are up just over 10% to $22.42 a piece.

Today’s uptick follows on from a 5.5% share price increase on Monday. 

The latest update is great news for investors, following Life360 shares’ tumble of just over 4% in May. 

At the time of writing, the US-based software development company’s shares are around 59% below an all-time high recorded in October last year and 31% lower year to date.

For context, the S&P/ASX 200 Index (ASX: XJO) is down around 1% at the time of writing.

What happened to the beaten-down tech stock?

The tech stock has been caught up in an ongoing tech-sector-wide sell-off earlier this year. Investors have shied away from ASX tech shares amid a growing fear that companies’ core services could be replaced by AI. 

At the same time, there has been some concern that tech sector share prices, including Life360, could be overpriced.

Why are Life360 shares jumping higher today?

There isn’t any price-sensitive news out of the ASX 200 tech stock this week to explain the latest share price increase.

It’s likely the uptick is due to several factors shifting investor sentiment.

The stock has fallen heavily since late 2025, and many now view the shares as oversold and attractive at current levels. It’s likely that today’s rise is driven by bargain-hunting investors who are buying into the shares for cheap.

It looks like positive broker updates over the past few weeks are also helping a turnaround in investor confidence for Life360 shares. Analysts note that Life360’s fundamentals are strong, with solid subscription growth, robust revenue, and profitability. 

Meanwhile, there has also been a turnaround in sentiment for the tech sector as a whole today. The S&P/ASX All Technology Index (ASX: XTX) is one of the few sectors climbing higher today, up just over 2.5% at the time of writing. 

How much higher can Life360 shares go?

TradingView data shows that brokers are very bullish on Life360’s outlook.

Out of 14 analysts, 13 have a buy or strong buy rating on the shares. The average $31.71 target price implies an upside of around 42% at the time of writing. Whereas some think the shares could rocket another 75% to $39.10 within the next 12 months.

Late last month, Bell Potter said it has retained its buy rating and improved its price target to $33 on Life360 shares. The broker said it thinks the market focused on the wrong metric in the company’s quarterly update. 

Instead of negatively reacting to softer monthly active user (MAU) growth, Bell Potter thinks investors should have responded positively to its strong growth in paying circles (paid subscribers). The broker also notes that the company is strategically implementing AI into its model. 

Citi also has a buy rating and $32.10 price target on Life360 shares. The broker said it thinks that recent product improvements will help to boost the company’s engagement and monetisation. 

The post Why are Life360 shares soaring 10% higher today? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Samantha Menzies 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.