Stock of the Day

February 9, 2021

Atlassian (TEAM)

$285.99
-$12.50 (-4.2%)
Market Cap: $78.20B

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.:

  • Atlassian Co. has recently seen significant institutional investment, with hedge funds and institutional investors owning 94.45% of the stock, indicating strong confidence in the company's future performance.
  • The stock price is currently at $313.10, reflecting a robust market position and potential for growth, especially considering its 1-year high of $326.00.
  • Analysts have a consensus rating of "Moderate Buy" for Atlassian Co., with a price target of $319.71, suggesting that there is room for price appreciation based on future performance expectations.
  • Recent upgrades from analysts, including target price increases from firms like Mizuho and Morgan Stanley, indicate positive sentiment and expectations for the company's growth trajectory.
  • Atlassian Co. continues to innovate and expand its software offerings, which positions it well in the competitive technology market, potentially leading to increased revenue and market share.

Atlassian Bear Case

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

  • The company reported a loss of ($0.12) earnings per share, significantly missing the consensus estimate of $0.73, which raises concerns about its profitability and operational efficiency.
  • Atlassian Co. has a negative net margin of 7.22% and a negative return on equity of 17.37%, indicating that the company is currently not generating profits relative to its revenue and equity, which could deter potential investors.
  • Analysts forecast a negative earnings per share of -0.34 for the current fiscal year, suggesting ongoing challenges in achieving profitability in the near term.
  • Despite recent upgrades, the stock has experienced volatility, with a significant drop from its 1-year high, which may indicate underlying market concerns or investor sentiment shifts.
  • 38.55% of the stock is owned by company insiders, which could lead to potential conflicts of interest or decisions that may not align with shareholder interests.

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