Life360 (NASDAQ:LIF) Shares Gap Up – Should You Buy?

Life360, Inc. (NASDAQ:LIF) gapped up before the market opened on Friday . The stock had previously closed at $54.81, but opened at $67.90. Life360 shares last traded at $69.0150, with a volume of 981,907 shares changing hands.

Key Headlines Impacting Life360

Here are the key news stories impacting Life360 this week:

• Positive Sentiment: Company operational update: Life360 reported record Q4 MAUs of 95.8 million, 2025 net adds of 16.2 million (20% YoY), Paying Circles reached 2.8 million and full‑year 2025 revenue and AEBITDA are expected to exceed prior guidance; company expects ~20% MAU growth in 2026. Life360 To Report Record Q4 2025 Operational Performance
• Positive Sentiment: Guidance upgrade: Life360 raised full‑year profit/revenue guidance (revenue range roughly $486–$489M vs. prior consensus ~ $480M), a key catalyst cited by press for the rally. Life360 upgrades full-year profit guidance, shares surge by one-third
• Positive Sentiment: Preliminary revenue beat: Early figures showed revenue ahead of forecasts, supporting the guidance raise and triggering buying interest. Life360 Shares Rally After Preliminary Revenue Beats Forecast
• Positive Sentiment: Monetization momentum: Coverage highlights that Life360 is successfully converting free users into paying customers (Paying Circles growth) and management says the trend should persist — a structural driver for higher revenue per user. Why Life360 Stock Soared Today
• Neutral Sentiment: Analyst/media explanation: Video and market commentary attribute the >20% intraday rally to boosted guidance and stronger US/international traction — helpful context for momentum but not new fundamentals. Overlooked Stock: LIF 20% Rally on Boosted Guidance
• Neutral Sentiment: Market coverage: Life360 was listed among premarket big movers and several outlets noted the surge, amplifying visibility to traders. Stocks making the biggest moves premarket
• Negative Sentiment: Volatility and valuation concerns: Other articles flag that shares have fallen sharply from prior highs (large drawdowns in recent months) and ask whether LIF remains a buy — highlighting continued downside risk if monetization or growth slows. Down 40% in 3 months: Are Life360 shares still a buy?

Analyst Upgrades and Downgrades

Several research firms have commented on LIF. UBS Group dropped their price objective on shares of Life360 from $120.00 to $110.00 and set a “buy” rating for the company in a research note on Tuesday, November 11th. Citigroup lowered their target price on shares of Life360 from $96.80 to $79.50 and set a “buy” rating for the company in a report on Friday, January 9th. Zacks Research cut shares of Life360 from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, November 5th. Wall Street Zen downgraded shares of Life360 from a “buy” rating to a “hold” rating in a report on Saturday, December 13th. Finally, Citizens Jmp downgraded shares of Life360 from a “market outperform” rating to a “market perform” rating in a research note on Monday, January 5th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $92.31.

Life360 Stock Up 24.2%

The company has a market cap of $5.34 billion, a P/E ratio of 200.29 and a beta of 3.79. The company has a debt-to-equity ratio of 0.79, a quick ratio of 6.62 and a current ratio of 6.80. The business’s fifty day moving average is $67.22 and its two-hundred day moving average is $81.52.

Life360 (NASDAQ:LIF) last issued its earnings results on Monday, November 10th. The company reported $0.11 EPS for the quarter, topping analysts’ consensus estimates of $0.03 by $0.08. The business had revenue of $124.50 million for the quarter, compared to the consensus estimate of $119.26 million. Life360 had a net margin of 6.46% and a return on equity of 7.95%. Equities analysts predict that Life360, Inc. will post -0.17 EPS for the current year.

Insider Buying and Selling

In other Life360 news, Director Chris Hulls sold 311,749 shares of the firm’s stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $77.10, for a total transaction of $24,035,847.90. Following the transaction, the director directly owned 469,749 shares in the company, valued at $36,217,647.90. This trade represents a 39.89% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Mark Goines sold 15,000 shares of the company’s stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $74.19, for a total value of $1,112,850.00. Following the completion of the sale, the director owned 56,809 shares of the company’s stock, valued at $4,214,659.71. This represents a 20.89% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 608,476 shares of company stock valued at $46,751,979 over the last 90 days. 8.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. SBI Securities Co. Ltd. raised its holdings in Life360 by 824.1% in the third quarter. SBI Securities Co. Ltd. now owns 268 shares of the company’s stock worth $28,000 after purchasing an additional 239 shares in the last quarter. NewEdge Advisors LLC bought a new stake in shares of Life360 in the 3rd quarter valued at about $32,000. CWM LLC grew its position in shares of Life360 by 71.4% in the 3rd quarter. CWM LLC now owns 384 shares of the company’s stock worth $41,000 after buying an additional 160 shares during the last quarter. IFP Advisors Inc purchased a new position in shares of Life360 in the 3rd quarter worth approximately $47,000. Finally, Jones Financial Companies Lllp raised its stake in shares of Life360 by 1,663.3% during the 3rd quarter. Jones Financial Companies Lllp now owns 529 shares of the company’s stock worth $55,000 after acquiring an additional 499 shares in the last quarter. 20.00% of the stock is currently owned by hedge funds and other institutional investors.

About Life360

Life360, Inc (NASDAQ: LIF) operates a location-based safety and communication platform designed to help families stay connected and secure. Through its flagship mobile application, Life360 offers real-time location sharing, check-in alerts and geofencing tools that enable users to monitor the whereabouts of family members or other trusted circles. The company’s services extend to emergency response features, including SOS alerts, 24/7 roadside assistance and crash detection capabilities powered by machine-learning algorithms, all aimed at enhancing user safety on the road and at home.

The Life360 platform is offered under a freemium model, with a basic no-cost tier providing essential location sharing and alerts.