Two weeks ago, my wife and I finally gave in and bought our twin boys iPhones. My wife’s sister has three older daughters in high school and college and she insisted that we look into the app Life360 . She proclaimed that the app is a must have for pre-teens and teens and many parents use it. So, we signed up. One week in, I cannot remember a time when software so quickly integrated into our lives. I started studying the company and found that it was publicly traded, and the technicals and fundamentals look great. I added the position to my Active Opps portfolio yesterday. This company is the world’s largest family-focused social network that allows users to track each other’s precise location, personal belongings, even pets. Life360 also offers features to track driving speed, crash alerts, roadside assistance and has even partnered with Uber for airport arrival ride booking. The app regularly ranks in the top 10 most popular social-networking apps and is in the top-25 of daily active users for all applications. Looking at the daily chart you can see the stock came to “life” in April, rallying 100% into June. The stock is consolidating, but the best sellers could do was force the stock into a consolidation that still trended higher. That’s a rare technical pattern indicative of continued buying interest. The stock popped over 6% on Monday and is now pulling back to support. In May, June and now July — you can see several blue volume bars above the 50-day moving average of volume uncovering institutional demand. As I first started researching this company, I thought with Apple’s location sharing and Air Tag device finder, why wouldn’t this company become obsolete with Apple’s features? I’ve found the software is so incredibly feature rich and is targeting a market that Apple is not really focused on and benefits from cross-platform appeal due to its availability on Android. Non-GAAP EPS totaled 62 cents per share in 2024 and is expected to go to $1.03 per share in 2026. The company’s operating revenue turned positive in the fourth quarter of 2024 and runs a high 80% gross margin (benefit of fixed cost SaaS companies). The stock has a pretty high forward valuation, so I’m going to keep this breakout on a short leash while above the $66 pivot point. In our Active Opps portfolio (linked below) we hold a 3.58% allocation and looking to increase my position size with evidence that support is being held. We offer active portfolio management and regular subscriber updates like the idea presented above . -Todd Gordon, Founder of Inside Edge Capital, LLC DISCLOSURES: Gordon owns LIF personally and in his wealth management company Inside Edge Capital. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
