Investors bet Life360 is still an ‘underappreciated opportunity’ after rally
Life360 is one of a handful of ASX tech stocks on a tear, driven by strong earnings and a recent capital raise that points to upcoming M&A activity.
It was May 2021 when Ausbil bought its first position in Life360, with the location-tracking company’s stock trading just above $5. After a few years in the doldrums, that is now looking like a shrewd investment.
Following a 17-month rally that began last March, when Life360 announced it would introduce advertising into the free tier of its app, the stock now sits at $32. Yet Ausbil head of equities research Chris Smith believes it still has much further to go.
“The market underappreciates the opportunity for Life360,” Smith said. “Just as Microsoft transformed the licence-based Office suite into the subscription-based Office 365 ecosystem, we see an opportunity for Life360 to evolve into an ecosystem… spanning family safety, item tracking, pet tracking, elder care, and beyond.”
Ausbil’s timing has been fortuitous of late. Its stake in Life360 exceeded 5% in April after it doubled down — just in time for Life360 to surge 51% in May, following a quarterly result that shocked the market with strong metrics on subscription growth and ad revenue.
