We've stood back and watched the rocket ride that Life360 shares have been on over the last 12 months. But can that ride continue, or have they found their apex?

The company's August earnings report saw Life360 deliver an impressive quarter, posting adjusted earnings of 8 cents per share. A remarkable turnaround from the 15-cent loss in the same quarter last year. Even more impressive, they beat analyst expectations, who had predicted a 1-cent loss.

Revenue growth was equally strong, jumping 36% to $115.38 million, comfortably exceeding the $109.75 million analysts had forecast. The company turned a quarterly net profit of $7.01 million, demonstrating that Life360 has a handle on how it's monetising its user base.

Almost 30 days post that earnings report and the stock has once again pulled off a massive jump, up 19% month-on-month. It's currently trading at $US90.45 as of Friday close (technically Saturday, as it trades on the Nasdaq, after all). That puts its 12 month performance up by a whopping 133%. If you'd invested $10,000 in Life360 on this day last year, you'd have doubled your money and then some, up to almost $23,000.

Time to take some profits?

The shine isn't necessarily off the apple for the stock, but investors seem to have spent the last week of August taking some value off the table and back into their pockets.

At least, that's what it looks like when you see the candles for the last week that show a slightly higher than average amount of selling action. Plus, there's selling happening at the top end of Life360 just last week, with SEC filings showing CEO Lauren Antonoff parting with around 4,500 of her own Life360 shares at a tidy price of $90, picking up a hair over $400,000 as a result. She wasn't alone in making her sell orders, either: Antonoff is one of three Life360 directors who sold chunks of their stock in the last few weeks.

What do the analysts say?

Analysts also seem to agree on the stock's current valuation ceiling. Seven analysts currently track Life360, with all maintaining "buy" ratings - a unanimous vote of confidence. The breakdown shows 7 "strong buy" or "buy" recommendations, with zero "hold" or "sell" ratings.

But while all keep it in the buy column, they all seem to agree that between $US85 and $US100 is where the stock should be priced right now.

Is Life360 up to the challenge?

I've opined before that Life360 is a business that - candidly - I don't really get. It's a product people are really enjoying, but for me, it's nothing that isn't already done for free by first-party manufacturers like Apple and Google. And when they're your competition, typically your future isn't as bright as Life360's seems to be! 

Now its constant challenge is to monetise a product that already competes against these huge loss leaders that are constantly innovating while still maintaining a price of $0. Apple's Find My network continues to expand, Google's family safety features become more sophisticated, and both offer these services bundled with their ecosystem products. 

Life360's success has been built on being first to market with a comprehensive family tracking solution, but maintaining pricing power against free alternatives from tech giants requires a lot of moxy. Its revenue growth is impressive, but sustaining that pace becomes increasingly difficult when the competition is free.

It's easy to look at a stock that has gained massive amounts of positive ground and say that it can't possibly continue. Past performance is never a guarantee of future returns, and this is by no means financial advice, but a few factors are starting to come together that show Life360 may have found itself pretty happy at this $90 number. At least until its next earnings in November when prices will no doubt ignite the rocket ship all over again.

Whether that rocket ship launches toward new highs or finds itself constrained by competitive pressures and valuation reality remains the key question for Life360 investors in the months ahead.