Atlassian Slides to $69 Ahead of Team Stock Earnings
Team stock fell to $69.25 before Atlassian’s April 30 earnings, its weakest level since November 2018. The drop leaves a company once valued at more than $110 billion now worth about $18 billion, with the report set to test whether growth can support a much smaller valuation.
Atlassian’s $69.25 reset
$69.25 is the price investors are now using to judge Atlassian ahead of its results. That is down from a record high of $483, and the gap between those two figures is now the main reference point for anyone holding TEAM stock.
$18 billion is the market value left after the selloff, and that compares with more than $110 billion at the top. Mike Cannon-Brookes, the co-founder and insider seller, has continued dumping the shares while the stock has slumped in the past few years, adding another layer of pressure to a name already trading far below its peak.
April 30 earnings test
25% is the revenue growth analysts expect for the last quarter, to more than $1.7 billion, with forward guidance expected to show another 20% increase to $1.64 billion for this quarter. Analysts also expect annual revenue of $6.3 billion, so the April 30 release will show whether Atlassian can still produce the kind of growth that supported its higher valuation before the selloff.
23% was the growth in Atlassian’s most recent revenue, which topped $1.6 billion, while cloud revenue rose 26% and RPO jumped 44% to $3.8 billion. GAAP net loss widened to $42 million from $38 million, even as non-GAAP net income rose to more than $320 million, a split that shows operating strength and accounting loss can move in opposite directions.
Wall Street’s $153 target
$153 is the average analyst estimate for Atlassian stock, about 120% above the current level. That gap leaves room for a sharp move if the earnings print or guidance changes the market’s view, especially after TEAM stock slipped below $113, its prior November 2022 support level.
80 is the reading tied to the weekly chart’s sharp slide in recent months, while the Relative Strength Index is moving up from oversold levels. The stock’s latest drop accelerated this week as investors dumped software companies on fears that artificial intelligence tools could disrupt their businesses, so the April 30 numbers now carry more weight than the recent chart pattern alone.
