Xero Ltd (ASX: XRO) shares are having another tough session on Tuesday as selling pressure continues to build on the ASX 200 tech stock.

At the time of writing, the Xero share price is down 3.19% to $66.43. By comparison, the S&P/ASX All Technology Index (ASX: XTX) is 1.14% lower to 2,891 points.

Earlier in the session, Xero shares fell as low as $66.30. That puts the stock around levels last seen during the early stages of the COVID market sell-off in March 2020.

It has been a brutal run for shareholders. Xero shares are now down more than 40% since the start of 2026 and around 65% lower than this time last year.

Why Xero shares are being sold off

There hasn’t been any new price-sensitive announcement from Xero today.

Instead, the latest fall looks to be part of the wider sell-off in tech shares, with growth stocks still out of favour.

Xero is still one of the biggest software names on the ASX, but the market is clearly not willing to pay the same price it once did.

That comes as investors focus more closely on earnings, margins, and how much companies are spending to grow.

Xero’s latest result showed another year of strong revenue growth. However, lower statutory profit, acquisition costs, and the Melio deal have given the market more to think about.

The business is still growing

Keep in mind, the sell-off doesn’t mean Xero has stopped growing.

In its FY26 result, Xero reported operating revenue of NZ$2.8 billion, up 31% on the prior year. Excluding Melio, organic revenue growth was 21%.

Its customer base also increased 11% to 4.92 million, with the company adding 506,000 net customers during the year.

Adjusted EBITDA rose 18% to NZ$757.4 million, while free cash flow came in at NZ$554 million.

Xero is also putting more focus on artificial intelligence (AI) and automation. This includes adding AI features to its platform and partnering with Anthropic to bring Claude into Xero.

Can the Xero share price recover from here?

The biggest question now is whether the share price fall has gone too far.

Xero is still growing revenue, adding customers, and producing free cash flow. The company has also guided to adjusted EBITDA of NZ$860 million to NZ$920 million in FY27.

However, the market still has a few reasons to be cautious.

The Melio deal still needs time, and the market may not be ready to pay up for software stocks just yet.

The post Xero shares just crashed to COVID-era lows. Is this ASX 200 tech stock broken? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Life360 Inc (ASX: 360) shares are tumbling today.

Shares in the S&P/ASX 200 Index (ASX: XJO) location sharing software developer closed yesterday trading for $23.19. During the Tuesday lunch hour, shares are changing hands for $22.49 apiece, down 3.0%.

For some context, the ASX 200 is up 0.1% at this same time.

Taking a step back, Life360 shares have slumped 29.7% over the past 12 months.

The company has faced a few headwinds, including the broader selling pressure that hit many Aussie and global Software as a Service (SaaS) stocks. That pressure followed growing investor concerns that artificial intelligence could replace a lot of the services these companies offer.

More recently, the ASX 200 tech stock has been enjoying a strong rebound. Indeed, shares are up 18.6% over the past month, smashing the 1.4% gains delivered by the benchmark index over this same period.

And looking ahead, Bell Potter Securities’ Christopher Watt believes Life360 is well-placed to keep outperforming in the months ahead (courtesy of The Bull).

Here’s why.

Why Life360 shares could keep marching higher

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

Citing the first reason he’s bullish on the ASX 200 stock he noted, “Active user growth is rebounding following a technical issue, while paying circle growth, which drives revenue, recently exceeded expectations.”

As for the second reason you might want to buy Life360 shares today, Watt added, “Guidance has been upgraded. Once focus returns to paying circles, I expect a re-rating to follow.”

Then there’s the recent share price rebound and the company’s pending half year (H1 2026) results.

According to Watt:

The upcoming August result is a catalyst. The company has been enjoying strong price momentum, with the shares rising from $17.91 on May 20 to trade at $22.54 on June 18.

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

The last release deemed price sensitive to Life360 shares was the company’s Q1 2026 update on 12 May.

Among the highlights, the company reported quarterly revenue of US$143.1 million, up 38% from Q1 2025. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$17.1 million were up 7%.

As for the guidance upgrade Watt mentioned above, Life360 raised its full-year 2026 revenue guidance to between US$650 and US$685 million. That was up from prior revenue guidance of US$640 million to US$680 million.

Management also expects to deliver improved earnings, boosting Life360’s full-year adjusted EBITDA guidance to US$130 to US$140 million, up from the prior guidance of US$128 million to US$138 million.

The post 3 reasons to buy the dip on Life360 shares today 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.

The S&P/ASX 200 Index (ASX: XJO) is having a mildly positive session on Tuesday. In afternoon trade, the benchmark index is up slightly to 8,822.7 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are climbing:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up 3% to $6.97. Investors have been buying this infant formula company’s shares this week after it received approval from the State Administration for Market Regulation (SAMR) to transition two China label infant milk formula (IMF) product registrations. A2 Milk’s CEO, David Bortolussi, said: “SAMR approval marks a significant milestone in our China growth strategy and Supply Chain transformation. It supports long-term growth in our core IMF business through market access and innovation, accelerates the development of advanced nutritional manufacturing capability, and captures attractive financial returns through incremental brand contribution and vertical margin capture.”

Calix Ltd (ASX: CXL)

The Calix share price is up 9.5% to 40 cents. This morning, this industrial technology company announced a joint development agreement (JDA) with Ambuja Cements Limited (Ambuja Cements). It is a subsidiary of the Adani Group. The two parties will work together on a commercial scale project at the Sanghi cement plant in Gujarat, India. Ambuja Cements’ director, Karan Adani, said: “The cement industry’s transition to a lower-carbon future will require bold thinking, technological innovation and collaboration across the value chain. Our partnership with [Calix subsidiary] Leilac reflects our commitment to evaluating next-generation technologies that can reduce process emissions while improving energy efficiency and supporting long-term sustainable growth. This initiative aligns with our vision of building world-class manufacturing operations for the future.”

CSL Ltd (ASX: CSL)

The CSL share price is up 2.5% to $115.66. This is despite there being no news out of the biotechnology giant on Tuesday. However, it is worth noting that CSL’s shares have been rebounding from their multi-year low this month. So much so, CSL shares have risen by 22% since the start of the month.

Ioneer Ltd (ASX: INR)

The Ioneer share price is up 18% to 16.5 cents. This morning, the lithium developer announced strategic non-binding letters of intent (LOIs) with the Korea Overseas Infrastructure & Urban Development Corporation and Hyundai Engineering Co. These will see the parties work together to advance the development of the Rhyolite Ridge Lithium-Boron Project. Ioneer’s managing director, Bernard Rowe, said: “Rhyolite Ridge has been a decade in the making — through ongoing partnerships, permitting, and financing. Working with trusted Korean partners with a track record of on-time and on-budget delivery brings us closer to breaking ground and delivering urgently needed lithium and boron. We’re delighted to work with KIND and Hyundai Engineering and look forward to what we’ll accomplish together.”

The post Why A2 Milk, Calix, CSL, and Ioneer shares are charging higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.