Atlassian's Cloud Bet: Short-Term Loss, Big Upside
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Motti Sapir1.19K FollowersFollow5ShareSavePlay(9min)CommentsSummaryAtlassian is rated a Buy at $162, with the stock down 26% despite strong cloud and AI-driven growth.TEAM posted 21% revenue growth, 26% cloud revenue growth, and beat EPS estimates by $0.20, yet market skepticism persists over losses and R&D intensity.Gross margins are robust at 83.5%, with over 300,000 customers and a highly recurring subscription base driving future profitability potential.Valuation upside is significant if R&D spending moderates and cloud/AI features drive upgrades; downside risk is limited by cash reserves and customer stickiness. Sundry Photography/iStock Editorial via Getty Images At $220, I rated Atlassian (TEAM) a Buy. Now the stock’s dropped over 26% to $162. The last month saw a low of $139.70. A lot has happened. Q1 FY26 showed 21% total revenue growth and a 26% jumpThis article was written byMotti Sapir1.19K FollowersFollowWith over 15 years of experience in the markets and a degree in economics, I focus on breaking down companies with clarity and discipline. My goal is to give individual investors a straightforward, honest view—what’s working, what isn’t, and where the risks and opportunities actually are. I don’t chase narratives. I follow the numbers and the business underneath.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.