It has been a very good day for the Life360 Inc (ASX: 360) share price.
At one stage today, the location technology company’s shares were up as much as 16% to $6.28.
The Life360 share price has given back some of these gains but remains up 12% at $6.07 at the time of writing.
Why is the Life360 share price shooting higher?
The catalyst for the rise in the Life360 share price on Wednesday has been a rebound in the tech sector. For example, in early afternoon trade, the S&P ASX All Technology index is up a sizeable 3.2%.
The gains have been strongest among loss-making tech shares, which were hit the hardest following the tech selloff earlier this year.
One leading broker that would approve of the Life360 buying frenzy today is Bell Potter. Earlier this month, the broker named the company as one of its top three picks in the tech sector.
It commented: “Life360 (360): Also remains a key pick and we believe has been oversold as, despite currently being loss making, has ample cash to fund it through to cash flow breakeven or positive in 2023 or 2024 while maintaining strong top line revenue growth and realising the synergy benefits from the recent Tile acquisition.”
Bell Potter has a buy rating and $10.00 price target on its shares.
The post Why is the Life360 (ASX:360) share price rocketing 16% higher? appeared first on The Motley Fool Australia.
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More reading
- 2 beaten down ASX growth shares analysts believe are great value
- Life360 (ASX:360) share price gives back 14% gain, but this broker remains bullish
- ASX 200 (ASX:XJO) midday update: Block and Zip shoot higher, Ampol’s acquisition boost
- 3 ASX growth shares brokers rate as buys
- Tech-tonic shift? ASX tech shares rally following Nasdaq’s lead
Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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