Jim Cramer Discusses These 10 Stocks & DeepSeek’s Limitations

8. Atlassian Corporation (NASDAQ:TEAM)

Number of Hedge Fund Holders In Q3 2024: 44

Atlassian Corporation (NASDAQ:TEAM) is a software company that enables collaboration within and outside a business. It is a classic SaaS stock with high multiples despite the fact that the firm does not generate profit. Atlassian Corporation (NASDAQ:TEAM)’s Rovo platform is its answer to the industry’s AI demand, and the firm has introduced AI into business analytics with the platform. The stock has gained 22.8% over the past year, with a notable jump of 14.9% in January after Atlassian Corporation (NASDAQ:TEAM) raised its annual growth forecast to 18.75%. Growth is the primary narrative drive for SaaS stocks and it was also on Cramer’s mind:

“Symbol TEAM. I think that people look to enterprise software . .you’re thinking about . . . . this is collaboration software, it makes it so that you can collaborate better with your customers. Collaborate better with your teammates. It really does work.  I had them on a bunch of times. But I will tell you this David, it’s the beacon. The growth hounds in the market always want to have the high multiple, the rule of 40, kind of stocks. . . . But Atlassian’s a really good company and everybody I know who’s on it. Young people tend to be on it and they’re putting the older people at the office to shame because they work much faster with it. But it works. It’s terrific and it’s going to allow people to buy enterprise software again which had been down in the dumps after ServiceNow.”

“It’s loved in the office and they’re great guys by the way. I’ve had them on a bunch of times. And I will say this David, their enterprise software is the lifeblood of so many different people versus say Apple. They’ll pay thirty times cash flow for these, fifty times sales, you know all that stuff. Instead of what you were saying about Apple, there’s no discipline when it comes to these companies. Because people want high growth. And those mangers now have been given the green light to go back and buy aaalll that stuff because of Atlassian. They thought they had the green light from SericeNow, they didn’t get it.”