We recently published a list of Top 10 AI News Everyone is Talking About. In this article, we are going to take a look at where Atlassian Corporation (NASDAQ:TEAM) stands against other top AI news everyone is talking about.
Jim Cramer in a latest program on CNBC talked about the ongoing “rebellion” against the data center and the impact of tariffs on the broader market. Cramer said that data centers have been a key story in the stock market for months but now it’s losing steam due to a variety of factors. He also mentioned the weakening economic indicators.
“I know these tariffs have people on edge. Consumer confidence indicators have just plummeted. Interest rates are sinking for fear of an economy gone soft. The key 10-year Treasury yield is back to where it was in mid-December when many thought we were looking at many more rate cuts than we’ve gotten. We have had to put rate cuts talk on hold. Now it’s right back because there’s a newfound paralysis—too many things happening at once, scaring people.”
Cramer said that the “seeds of doubt” about data center chip demand were sown following the launch of DeepSeek and the market is still reeling from its effects.
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For this article we picked 10 AI stocks the market is buzzing about these days. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A group of executives in a board room discussing the latest software innovation.
Atlassian Corporation (NASDAQ:TEAM)
Number of Hedge Fund Investors: 44
Jim Cramer in a latest program discussed Atlassian Corporation (NASDAQ:TEAM) results and said the company is “loved” in offices because of its software. He also talked about how enterprise software companies like TEAM defy conventional valuation patterns:
“Enterprise software is the lifeblood of so many different people versus, say, Apple. They want to pay, they’ll pay 30 times cash flow for these 50 times sales, you know, all that stuff. Instead of what you’re saying about Apple, there’s no discipline when it comes to these companies because people want high growth. And those managers now have been given a green light to go back and buy all that stuff because of that last year.”
Atlassian Corp. (NASDAQ:TEAM) is famous for Jira, a software project management software widely used in the industry. In the latest quarter, the company posted impressive results, with 21% year-over-year revenue growth. For the full year, the company raised its revenue growth guidance to 19%, up from the earlier 17%. The updated full-year outlook suggests fourth-quarter revenue of $1.359 billion, which would mark a 20% year-over-year growth acceleration.
Hardman Johnston Global Equity stated the following regarding Atlassian Corporation (NASDAQ:TEAM) in its Q3 2024 investor letter:
“The top sector detractors from relative performance during the quarter were Information Technology and Financials. Shares of Atlassian Corporation (NASDAQ:TEAM) declined following its earnings release in early August as the company laid out a 16% revenue growth target for the upcoming fiscal year. The guide missed investor expectations and implies a meaningful acceleration in revenue growth beyond FY25 to meet the company’s recently presented 3-year growth CAGR target of +20%. The near-term deceleration is driven mostly by an upcoming period of tough comparables due to the end of maintenance for its server product, which had been an event-driven tailwind for cloud and data center growth. Management has also demonstrated conservatism in its near-term guidance as it considers a worsening macro environment and some disruption as it evolves its go-to-market approach to scale with large enterprises. Atlassian has also been a victim of a challenging software industry, driven by a few top-down headwinds like digestion of software spend following very strong procurement during and exiting the pandemic, a shift of IT budgets from traditional software to AI initiatives, and the current lack of monetization observed by application software companies’ AI offerings.”
Overall, TEAM ranks 9th on our list of top AI news everyone is talking about. While we acknowledge the potential of TEAM as investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TEAM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.