EOS electro optic systems, and Life 360 inc
would like your thoughts on EOS and where you see the company in a few years and your take on 360 results. Thankyou.
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Answer
Hi Phil,
Electro Optic Systems (EOS) has tripled since June. We could not be a buyer here and if we held, we’d be trimming or selling. There is now a lot of hot money in the defence sector, which will make it prone to deep pullbacks. We do like their trajectory over the medium term, but it’s now a $1.2bn company trading on ~9x revenue and is not expected to be profitable until FY27. We wouldn’t be surprised if they used this strength to raise from fresh $$.
Life360 (360) delivered a record result in terms of revenue and earnings, and their platform continues to scale beautifully. 2Q25 monthly active users (MAU) saw net additions of 4.3 million, which lifted total monthly active users (MAU) to approximately 88 million, up 25% year-on-year. The recipe is simple and very powerful – get more people to use the ap more often, then target them with highly personalised advertising underpinned by the huge amount of data that 360 collects on its users.
They know where you go, when you go, how fast you drive to get there, what your routine is, what your interests are, what your family’s interests are, how connected (or not) you are as a family and so on – the value is in the data and the looming roll-out of advertising will be both a huge test, and great opportunity for them to monetise their rusted-on user base. It’s hard to fault it, other than highlighting that it trades at more than twice the multiple of some global consumer app peers – though we do see reasons for that.
Two very hot stocks, that have already rallied by a lot.
