Why Atlassian Stock Just Popped

Is the Great Software Stock Slump of 2026 finally over?

IT specialist **Atlassian **(TEAM +4.17%) stock has been on a pronounced downturn, losing 73% of its value over the last 52 weeks. This morning, however, shares of Atlassian bounced back brightly, surging 4.1% through 12:05 p.m. ET.

You can thank the friendly analysts at **Jefferies **for that.

Image source: Getty Images.

What Jefferies says about Atlassian

Analyst Brent Thill led a team of Jefferies analysts into the software sector wreckage this morning, “taking a fresh look at current levels considering both our new AI Risk Matrix and idiosyncratic fundamentals/catalysts,” as StreetInsider.com reports. And what did Thill discover?

“Software will survive,” because “business IP is embedded inside,” is the analyst’s conclusion. And one of the biggest winners from a rebound in software stocks will be Atlassian.

Although Thill admits that artificial intelligence is increasingly being used to generate software these days, he argues that “more AI-generated code = more need for IT collab,” and that Atlassian is perfectly positioned to benefit from this. As the “fastest growing app name” that Jefferies covers, the analyst sees Atlassian growing 20% annually once things start shaking out in the IT sector – and declares the stock a buy.

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NASDAQ: TEAM

Atlassian

Today’s Change

(4.17%) $2.87

Current Price

$71.68

Key Data Points

Market Cap

$18B

Day’s Range

$67.85 - $73.10

52wk Range

$67.85 - $295.91

Volume

398K

Avg Vol

4.5M

Gross Margin

83.80%

Is Atlassian stock a buy?

It’s hard to argue with the numbers.

Priced at $18.9 billion in market capitalization, and with more cash than debt on its balance sheet, Atlassian generated just under $1.3 billion in positive free cash flow over the last 12 months. This works out to a price-to-free cash flow ratio of roughly 14.5x – on a stock that most analysts predict will grow its profits better than 20% annually over the next five years.

Unless AI eats software entirely, that’s a steal of a deal, folks. And it makes Atlassian stock a “buy.”