Stock of the Day

February 9, 2021

Atlassian (TEAM)

$218.60
+$7.68 (+3.6%)
Market Cap: $57.38B

About Atlassian

Atlassian Corporation, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. Its product portfolio includes Jira Software and Jira Work Management, a project management system that connects technical and business teams so they can better plan, organize, track and manage their work and projects; Confluence, a connected workspace that organizes knowledge across all teams to move work forward; and Trello, a collaboration and organization product that captures and adds structure to fluid and fast-forming work for teams. The company also offers Jira Service Management, an intuitive and flexible service desk product for creating and managing service experiences for various service team providers, such as IT, legal, and HR teams; and Jira Align, an Atlassian's enterprise agility solution designed to help businesses to adapt and respond dynamic business conditions with a focus on value-creation. In addition, it provides Bitbucket, an enterprise-ready Git solution that enables professional dev teams to manage, collaborate, and deploy quality code; Atlassian Access, an enterprise-wide product for enhanced security and centralized administration that works across every Atlassian cloud product; and Jira Product, a prioritization and road mapping tool. Further, the company's portfolio includes Atlas, a teamwork directory; Bamboo, a continuous delivery pipeline; Crowd, a single sign-on; Crucible, a collaborative code review; Fisheye, a search, track, and visualize code change software; and Compass, a developer experience platform. Additionally, it offers Opsgenie, an on-call and alert management software; Sourcetree, a free git client for windows and mac; Statuspage that communicates real-time status to users; Beacon, an intelligent threat detection software; and Atlassian Access that enhance data security and governance for Atlassian Cloud products. The company was founded in 2002 and is headquartered in Sydney, Australia.

Atlassian Bull Case

Here are some ways that investors could benefit from investing in Atlassian Co.:

  • The current stock price is around $206, which may present a buying opportunity for investors looking for growth in the technology sector.
  • Atlassian Co. has shown strong revenue growth, with a reported increase of 14.1% year-over-year, indicating a robust demand for its software products.
  • Institutional investors own a significant portion of the company, with 94.45% of the stock held by these entities, suggesting confidence in Atlassian's long-term prospects.
  • Recent analyst ratings have been predominantly positive, with many firms issuing "buy" or "overweight" ratings, reflecting optimism about the company's future performance.
  • The company has a diverse range of software products that cater to various business needs, enhancing its market position and potential for continued growth.

Atlassian Bear Case

Investors should be bearish about investing in Atlassian Co. for these reasons:

  • The company has a negative price-to-earnings (P/E) ratio, indicating that it is currently not profitable, which can be a red flag for potential investors.
  • Insider selling has been notable, with significant shares sold recently, which may signal a lack of confidence from those within the company.
  • Atlassian's stock has experienced volatility, with a 1-year high of $326 and a low of $135, suggesting potential instability in its market performance.
  • Analysts have adjusted their price targets downward, which could indicate a more cautious outlook on the company's future earnings potential.
  • The company has a negative net margin, which means it is currently spending more than it earns, raising concerns about its financial health.
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