Life360 shares rebound 9% on Wednesday. What on earth is going on with the ASX tech stock this week?

Detailed summary

The shares are storming higher again today. The post Life360 shares rebound 9% on Wednesday. What on earth is going on with the ASX tech stock this week? appeared first on The…

Life360 Inc (ASX: 360) shares have jumped back into the green in Wednesday morning trade.

At the time of writing, the technology shares are up around 9% and changing hands at $20.52. That's a sharp rebound from a share price crash yesterday, where Life360 shares ended the day down around 15%.

Even despite today's increase, the shares are still down around 37% for the year to date and are 55% lower than a year ago.

It's made me question, what on earth is going on? And why is the share price so volatile?

The global location-services provider released its quarterly results ahead of the ASX open on Tuesday.

The result showed strong headline revenue growth and came in ahead of analyst expectations, but it also included a cautious outlook that clearly spooked investors.

Life360's total revenue grew 40% year on year, net income increased 130% year on year, adjusted EBITDA climbed 41%, and the company ended the quarter with US$465 million in cash.

The company also saw a 17% increase in its monthly active users, to just shy of 108 million active users globally.

But it looks like growth momentum is slowing and higher prices have seen some customers exit subscriptions.

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