Atlassian Corporation (TEAM) Declined Despite Solid Results And Guidance

In its third-quarter 2025 investor letter, Baron Technology Fund highlighted stocks such as Atlassian Corporation (NASDAQ:TEAM). Atlassian Corporation (NASDAQ:TEAM) is a leading collaboration software provider that enables organizations to connect all teams through a system of work that unlocks productivity at scale. The one-month return of Atlassian Corporation (NASDAQ:TEAM) was 5.65%, and its shares lost 35.80% of their value over the last 52 weeks. On November 7, 2025, Atlassian Corporation (NASDAQ:TEAM) stock closed at $157.83 per share, with a market capitalization of $41.527 billion.

Baron Technology Fund stated the following regarding Atlassian Corporation (NASDAQ:TEAM) in its third quarter 2025 investor letter:

"Atlassian Corporation (NASDAQ:TEAM) is a leading team collaboration and productivity software vendor. The company initially focused on serving software engineers (over 20 million worldwide), but its newer products, features, and use cases address a much larger set of users, including business teams engaged in product development (over 100 million worldwide) and the much broader group of knowledge workers (over 1 billion globally). Despite solid results and guidance, shares declined on continued fears that AI software code development tools would pressure the number of software developers and Atlassian’s own growth from this segment. Our research indicates that AI will spark more software code to be written and applications to be adopted, resulting in more—not less—demand for Atlassian’s portfolio of products. We believe these products will be monetized through a combination of both seats and consumption elements. We are carefully monitoring all risks related to AI but have yet to see any impact on the company’s business."

Atlassian Corporation (NASDAQ:TEAM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 64 hedge fund portfolios held Atlassian Corporation (NASDAQ:TEAM) at the end of the second quarter, compared to 82 in the previous quarter. In the first quarter of fiscal 2026, Atlassian Corporation's (NASDAQ:TEAM) revenue grew 21% year-over-year to $1.4 billion. While we acknowledge the potential of Atlassian Corporation (NASDAQ:TEAM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.