What Happened?
Shares of collaboration software company Atlassian (NASDAQ:TEAM) fell 4.1% in the afternoon session after the company's CEO and Co-Founder Michael Cannon-Brookes sold $1.3 million worth of shares, alongside news of job cuts.
The sale, which occurred on September 8, involved 7,665 shares. This insider selling activity followed reports on September 9 that the Australian software provider cut 200 customer support jobs in Europe as part of a strategic shift toward using AI-powered assistance tools. The negative sentiment may have been amplified by broader weakness in the software sector, as peer Synopsys saw its shares plunge after missing earnings expectations and lowering its outlook. This downturn for Atlassian represents a sharp reversal from the previous day, when the stock had gained over 4% following an acquisition announcement.
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What Is The Market Telling Us
Atlassian’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 4.4% on the news that the stock extended its positive momentum as the company announced a major acquisition to enter the AI browser space and a strategic plan to accelerate its transition to the cloud.
Atlassian is set to acquire The Browser Company, creator of the Dia AI-browser, in a $610 million deal aimed at transforming how work is done in the AI era. Separately, the software maker announced it will phase out its on-premise Data Center products over the next six years, a move expected to drive customer adoption of its cloud offerings. Analysts reacted positively to the news, with Raymond James noting the decision should support long-term revenue growth above 20%. Adding to the positive sentiment, Cantor Fitzgerald reiterated its "Overweight" rating and $240 price target on the stock. This combination of a significant AI-focused acquisition and a strategic push toward higher-growth cloud services fueled investor optimism.
Atlassian is down 28.2% since the beginning of the year, and at $174.19 per share, it is trading 46.1% below its 52-week high of $322.94 from February 2025. Investors who bought $1,000 worth of Atlassian’s shares 5 years ago would now be looking at an investment worth $1,026.
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