Jim Cramer Talked About These 11 Stocks Recently

3. Atlassian Corporation (NASDAQ:TEAM)

Cramer mentioned that Atlassian Corporation’s (NASDAQ:TEAM) high price-to-earnings ratio is giving him vertigo.

“Let’s start with love: This market [is] once again enamored with those enterprise software stocks that are so expensive… Now these have all had parabolic moves, up double digits this month, even if they all pulled back a little bit today. If you’re selling software to big businesses, you can do no wrong in this market… I think Atlassian, symbol TEAM, which makes worker collaboration software kicked off this whole move at the beginning of the month when it reported a fantastic quarter, but now it sells for 77 times earnings. It’s giving me vertigo. Now, enterprise software does tend to not have much Chinese exposure, which is a positive heading into Trump’s second term. How much is that worth? Not clear. At the CNBC Investing Club meeting, Jeff Marks and I talked about which companies could be helped or hurt by Trump 2.0. Enterprise software, it came out unscathed. I think that should put a premium on enterprise software stocks. But at this point, enough is enough. I say let ’em come down and then you can buy.”

Atlassian (NASDAQ:TEAM) designs and develops a range of software products aimed at improving project management, collaboration, communication, and enterprise agility for businesses and teams across various functions. Its products continue to be in high demand, which is reflected in its growing customer base and increasing revenue.

For Q1 of fiscal 2025, the company reported revenue of nearly $1.2 billion, marking a 21% increase from the same period the previous year. This result surpassed analyst expectations, and the company’s cloud revenue showed a notable 31% year-over-year growth, which is a positive sign given the company’s efforts to transition customers to its cloud-based offerings.

As of Q1, the company has a base of over 300,000 customers. Despite the revenue growth, Atlassian (NASDAQ:TEAM) reported a GAAP operating loss of $32 million, a larger loss than the $18.9 million recorded in the prior year. Net losses also widened to $123.8 million, compared to $31.9 million the year before.