TEAM Should I Buy
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Atlassian Corp (TEAM) is currently not a strong buy for a beginner investor with a long-term strategy. While the company has solid fundamentals and growth potential, the technical indicators suggest a bearish trend, and the stock appears oversold. Additionally, sentiment around AI disruption and recent price target cuts by analysts indicate potential headwinds. It is advisable to monitor the stock for a better entry point.
The stock is in a bearish trend with the MACD histogram at -1.143 (below 0), RSI_6 at 14.344 indicating oversold conditions, and bearish moving averages (SMA_200 > SMA_20 > SMA_5). Key support levels are at 81.543 and 75.23, with resistance at 91.761. The stock is trading below its pivot level, suggesting further downside risk.
Revenue growth of 23.31% YoY in Q2 2026, with gross margin improving to 85.02%.
Appointment of James Chuong as CFO, bringing extensive financial expertise.
Analysts maintain Buy or Outperform ratings despite price target reductions, citing strong fundamentals and long-term growth potential.
Concerns over AI disruption impacting the software sector, including Atlassian.
Recent sell-off in software stocks and bearish technical indicators.
Analysts have significantly reduced price targets, reflecting sector-wide valuation compression and near-term uncertainties.
In Q2 2026, Atlassian reported revenue growth of 23.31% YoY to $1.586 billion. Net income improved by 11.61% YoY but remains negative at -$42.645 million. EPS increased by 6.67% YoY to -$0.16. Gross margin improved to 85.02%, up 2.86% YoY, indicating operational efficiency.
Analysts remain broadly positive on Atlassian's long-term prospects, with most maintaining Buy or Outperform ratings. However, price targets have been reduced significantly due to sector turmoil and valuation compression. Analysts highlight strong Q2 results but caution about AI-related headwinds and the need for consistent performance over multiple quarters.
