Long Trade Idea
Enter your long position between $83.17 (last week’s intra-day low) and $88.25 (Friday’s intra-day high).
Market Index Analysis
- Atlassian (TEAM) is a member of the NASDAQ 100 Index.
- This index trades inside a bearish chart pattern with rising bearish trading volumes.
- The Bull Bear Power Indicator for the NASDAQ 100 Indexis bearish with a descending trendline.
Market Sentiment Analysis
Equity futures are pointing to a lower opening as broader economic concerns and AI’s impact on everything from software to financial services, and from real estate to transportation, weigh on markets. Friday’s PCE and consumer confidence data will provide crucial economic data. Fed minutes from the latest meeting are scheduled for release on Wednesday, and questions about nominated Fed Chief Warsh and his loyalty pledge are raising concerns about Fed independence. This week will feature earnings from Walmart, DoorDash, Molson Coors, Constellation Energy, Energy Transfer, and Southern Company.
Atlassian Fundamental Analysis
Atlassian is a proprietary software company specializing in collaboration tools for software development and project management. It employs over 12,000 people in 14 countries and serves more than 300,000 customers across 200 countries.
So, why am I bullish on TEAM despite its massive 75% correction?
The Atlassian sell-off amid fears of how AI will disrupt software companies is overdone, as evidenced by its recent earnings beat, which included an upbeat 2026 outlook and increased revenue and margin guidance. Jira and Confluence, the two core products, benefit from the in-house AI platform Rovo, and the launch of new AI features like Collections is resonating well with customers. I am equally bullish about its cloud migration program, partnership with Google, and its impressive 120% net revenue retention (NRR) rate for cloud subscriptions.
Metric | Value | Verdict |
P/E Ratio | 17.92 (Forward P/E) | Bullish |
P/B Ratio | 13.99 | Bearish |
PEG Ratio | 0.90 | Bullish |
Current Ratio | 0.89 | Bearish |
ROIC-WACC Ratio | Negative | Bearish |
The price-to-earnings (P/E) ratio of 17.92 makes TEAM an inexpensive stock. By comparison, the P/E ratio for the NASDAQ 100 is 33.15.
The average analyst price target for TEAM is $177.85. This suggests excellent upside potential with manageable downside risks.
Atlassian Technical Analysis
Today’s TEAM Signal
- The TEAM D1 chart shows price action forming a new horizontal support zone.
- It also shows price action between its descending 0.0% and 38.2% Fibonacci Retracement Fan levels.
- The Bull Bear Power Indicator is bearish with a positive divergence.
- The average bearish trading volumes are higher than the average bullish trading volumes but are nearing downside exhaustion.
- TEAM corrected more than the NASDAQ 100 Index, a bearish confirmation, but bullish catalysts are accumulating.
My TEAM Long Stock Trade
- TEAM Entry Level: Between $83.17 and $88.25
- TEAM Take Profit: Between $110.24 and $115.53
- TEAM Stop Loss: Between $75.06 and $79.01
- Risk/Reward Ratio: 3.34