Life360 Inc. (ASX: 360) and Zip Co Ltd (ASX: ZIP) have been growing strongly for many years.
But I think the bigger opportunity is still ahead. Life360 is building a family safety and connection platform with a huge user base, while Zip is becoming a more profitable digital payments business with a particularly exciting opportunity in the United States.
Because of this, I think both ASX shares are strong buys for investors willing to accept some volatility.
Life360 shares
Life360 has become one of the more interesting consumer technology shares on the ASX.
The company's app helps families stay connected through location sharing, driving safety features, alerts, and related services. I think that gives Life360 a useful emotional layer that many apps do not have. It is not just entertainment or convenience. For many families, the product is about reassurance.
That can be powerful if the company keeps building around that relationship.
Life360's recent quarterly update showed how quickly the business is still growing. In the first quarter of 2026, total revenue grew 38% year over year to US$143.1 million. Monthly active users reached approximately 97.8 million, up 17% year-over-year, while total Paying Circles rose 27% to 3.0 million.
The advertising opportunity is also becoming more meaningful. Advertising revenue reached US$19.7 million in the quarter, up 329% year-over-year.
That is partly what makes Life360 exciting to me. The company has a large free user base, a growing paid subscriber base, and a developing advertising business. If it can keep improving the product without damaging user trust, there could be several ways to grow revenue over time.
There are risks. Consumer apps can be competitive, privacy is crucial, and valuation can move around quickly. But I think Life360 has the ingredients of a much larger business.
Zip shares
Zip is another ASX growth share I think is worth buying.
The buy-now-pay-later company has been through a major reset in recent years, and I think that makes the investment opportunity more attractive. It is not just chasing growth. It is showing better profitability, tighter execution, and momentum in the right markets.
The US business is what I value most. Zip recently said its US operations had 4.6 million active customers and annual transaction volume of around A$12 billion as at 31 March 2026. The company also pointed to a high-growth US business executing strongly in what it sees as an attractive early-stage market.
That is a big opportunity if Zip can keep underwriting customers profitably. The company says it serves Americans who are often overlooked by traditional financial services providers. I think that is an important point. Many customers still want flexible, transparent payment options, particularly when managing everyday expenses.
Zip's update also showed group momentum. For the third quarter of FY26, total transaction volume rose 22.4% year over year, total income increased 20.2%, and cash EBTDA jumped 41.5%.
That combination of growth and improving profitability is what I want to see.
Foolish takeaway
Life360 and Zip are not low-risk blue-chip ASX shares, but I think both have attractive long-term upside.
Life360 is building a large consumer platform around family safety and connection, with subscriptions and advertising both contributing to growth. Zip is showing that a digital payments business can grow while becoming more profitable, with the US market offering a large runway.
Both companies still need to execute well. But based on their recent momentum, I think Life360 and Zip shares are strong buys today.
The post Why I think Life360 and Zip shares are strong buys appeared first on The Motley Fool Australia.
Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2026