The Atlassian stock price continued its strong downward spiral this week, reaching its lowest level since August 2024. TEAM has plunged by 72% from its highest level in 2021 and by 57% from its 2025 highs. This crash has brought its market capitalization down from over $124 billion to $36 billion today.
Atlassian stock has crashed amid growth concerns
TEAM stock price has crashed as concerns about its growth trajectory continued amid the ongoing AI boom.
The average estimate is that the company’s revenue for the year will be $6.31 billion, up by 20% on an annual basis. This growth trajectory is expected to fade in the next financial year to 18%.
There are also significant concerns about the ongoing dumping by its insiders, which has been going on for years. Data compiled by Barchart shows that insiders have executed 533 sell trades, dumping nearly 4 million shares. At the current price, these stocks are worth over $538 million.
The insiders selling the shares are Michael Cannon-Brookes, the CEO, and Scott Farquhar, the founder. While these sales are part of the routine financial management, they raise concerns about their confidence in the company.
Additionally, there are concerns about the rising competition in its industry. Some of its most notable competitors are companies are Microsoft, GitLab, Salesforce, and Asana.
Atlassian’s business is growing
The most recent financial results showed that the company’s business was doing well, and the management expects the trend to continue. Its revenue rose by 21% to over $1.4 billion, with its cloud business continuing its growth.
The company’s business has confirmed adding customers, with its customer count hitting over 300,000 and monthly active customers hitting over 3.5 million. Most importantly, its net loss narrowed from over $123 million in the first quarter to over $54 million.
The company’s margins continued growing, with the gross margin moving to 82% from the previous 81.7% as the company continued cutting costs.
Its management believes that the company has more room to grow, with the gross margin in the second quarter of ‘26 coming in at 85% and the operating margin being minus 5%.
Data compiled by Yahoo Finance shows that the average estimate is that the company’s revenue rose by 20% to $1.54 billion. The next quarter’s revenue is also expected to be 21.6% to $1.65 billion.
There are also signs that the company has become undervalued, with its non-GAAP price-to-earnings ratio being at 30, much lower than the five-year average of 113. Its Rule-of-40 multiple based on the levered free cash flow stands at 43%.
TEAM stock price technical analysis
The weekly timeframe chart shows that the Atlassian stock price has come under pressure in the past few months, moving from a high of $326 in 2025 to the current $137. It is now attempting to move below the important support level at $135, its lowest level in August 2024.
The stock has continued to remain below the 50-week and 100-week Exponential Moving Averages (EMA). Also, the Supertrend indicator has remained in the red.
Also, the MACD indicator has remained below the zero line, while the Relative Strength Index (RSI) is nearing the oversold level.
Therefore, the stock will likely continue falling in the near term, with the next key support level to watch being at $100. However, the stock will likely rebound later this year as investors buy the dip.
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