Why Atlassian Stock Got Hammered Today
Shares of work-collaboration software company (NASDAQ: TEAM) got hammered on Friday after the company reported financial results for the fiscal second quarter of 2024. Even though the stock is down, the company may have more analysts than not defending its financial results, which is an interesting wrinkle to this story. As of 11:15 a.m. ET, Atlassian stock was down 12%, but was bouncing back from being 17% down earlier in the session.
Revenue for Atlassian's fiscal Q2, ended in December, topped $1 billion for the first time. The company's total revenue was up 21% year over year, which was its slowest top-line quarterly growth rate since it went public 2015. Guidance for the upcoming third quarter implies further deceleration, with Q3 revenue expected to be up by 20.8% at most.
While it seems many investors are negatively reacting to Atlassian's decelerating growth, Wall Street doesn't believe this is a time to sell. For example, JMP Securities analyst Patrick Walravens recommends holding Atlassian stock, according to TipRanks, because there's still plenty of strength in the business. However, Walravens did point out that Atlassian's organic revenue growth for cloud isn't quite what investors expect.
Source Fool.com
