10 Best Advertising Stocks to Buy According to Short Sellers

6. Atlassian Corporation (NASDAQ:TEAM)

Short Interest as % of  Shares Outstanding: 1.19%

Number of Hedge Fund Investors In Q2 2024: 47

Atlassian Corporation (NASDAQ:TEAM) is an enterprise software company that is known for its Jira software which also enables customers to manage marketing requests, create templates, and run market projects. A sizeable company with $4.4 billion in revenue, Atlassian Corporation (NASDAQ:TEAM)’s narrative depends on its ability to further drive growth, control margins, and target customers of all sizes. Any weakness on this front, which means that Atlassian Corporation (NASDAQ:TEAM) has to meet revenue growth expectations and not just simply grow introduces weakness in the share price. This has also translated into weak share price performance in 2024, as Atlassian Corporation (NASDAQ:TEAM)’s stock is down by 31% year to date. The firm has to also perform on all fronts, namely its Data Center and Cloud divisions especially since they are placed in the highest growing segments of the software industry. Atlassian Corporation (NASDAQ:TEAM) is also currently migrating its customers from the Server business to the two aforementioned businesses, and its performance could improve after things stability.

Artisan Partners mentioned Atlassian Corporation (NASDAQ:TEAM) in its Q1 2024 investor letter. Here is what the firm said:

“Among our top detractors were Atlassian, ON Semiconductor and Exact Sciences. Atlassian’s earnings results met expectations for cloud revenue growth. However, this was insufficient for investors to support the stock’s momentum after strong recent performance. While parts of its cloud business, such as enterprise, are exceeding expectations, there are signs of weakness among small- and medium- sized companies, where pressures persist in paid seat expansions. We trimmed the position due to valuation concerns; however, we remain bullish in the longer term and are building conviction around its ability to leverage generative AI to drive accelerated cloud revenue growth.”