Atlassian Shares Drop 21% Amid AI Feature Launch by Anthropic
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Source: Fool
- Stock Volatility: Atlassian's shares have dropped 21% so far in 2026, primarily due to the impact of Anthropic's newly launched Cowork feature, although Wall Street analysts believe the market reaction is overblown, with a projected 76% upside potential.
- AI Integration Progress: As of the end of October, Atlassian's AI capabilities are utilized by 3.5 million users, and the introduction of third-party AI tools has significantly boosted the usage of Jira project management software, indicating strong engagement growth.
- Cloud Transition: Atlassian aims to complete its transition to cloud services by early 2029, which will reduce overall software maintenance costs and accelerate the rollout of new features, further solidifying its market position.
- Analyst Expectations: Despite Mizuho and Citigroup lowering their price targets to $225 and $210 respectively, analysts generally see significant upside potential for the stock, reflecting confidence in the company's future growth prospects.
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Analyst Views on TEAM
Wall Street analysts forecast TEAM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TEAM is 235.57 USD with a low forecast of 185.00 USD and a high forecast of 320.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
23 Analyst Rating
19 Buy
4 Hold
0 Sell
Strong Buy
Current: 120.380
Low
185.00
Averages
235.57
High
320.00
Current: 120.380
Low
185.00
Averages
235.57
High
320.00
About TEAM
Atlassian Corporation is a provider of team collaboration and productivity software. The Company specializes in software development, work management, and enterprise service management software, which enables enterprises to connect their business and technology teams with an artificial intelligence (AI)-powered system of work. Its interconnected portfolio of apps, AI agents, and Collections, each with discrete value propositions, delivers solutions for software teams, IT operations and support teams, leadership, and business teams. Its apps, agents, and Collections are all built on the Atlassian Cloud Platform and data model: a common technology foundation that connects teams, information, and workflows throughout an organization. Its apps include Jira, Confluence, Loom, Jira Service Management, Rovo, Bitbucket, Compass, Jira Product Discovery, Jira Align, Focus and Talent. It offers team collaboration products on its Data Center deployment option. It operates the Dia and Arc browsers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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