Life 360Even if is at an historical high, this stock is probably worth watching for several reasons :
- main one is probably that they have a high level of sticky users that they can better monetise (they are introducing advertising, which has probably a significant potential for them),
- most of their business is done in the US, so they are a large beneficiary of the USD strength (90 % of revenues from North America),
- the expected change of regulation for social media companies (cf what's happening in Australia) may also be in favour of a company like Life 360, which has no particular problem regarding its content,
- other interesting elements : they were able to largely increase their prices in 2022 (without impacting their number of customers), while they also have now a large operating leverage (cf operating cost growth vs revenue growth),
The stock is expensive based on last published results.
But, based on their potential revenues and margins* in 3 to 5 years, it may be an interesting stock.
* margin on ad is high for social media companies.
Expand
