- 1. Atlassian stock fell 87% from $482.81 2021 peak to $170.15.
- 2. CNN Fear & Greed Index reached 33 on Oct. 10, 2024.
- 3. Q4 cloud revenue increased 37% to $1.46 billion USD.
Atlassian Corp (NASDAQ: TEAM) shares declined 87% from the November 2021 peak of $482.81 to $170.15 on Oct. 10, 2024, per Bloomberg Terminal data.
CNN Money's Fear & Greed Index stood at 33 on Oct. 10, 2024. The index aggregates seven indicators, including market momentum, stock price strength and VIX levels.
Stock Performance in Tech Selloff
The Nasdaq Composite fell 5.2% over the past year through Oct. 10, 2024, per Yahoo Finance. Atlassian shares dropped 28% year-to-date, trailing the S&P 500 Information Technology index's 18% gain.
The 52-week range reached $137.88 to $258.69. Trading volume hit 2.1 million shares on Oct. 10, above the 30-day average of 1.8 million shares, per Bloomberg Terminal data.
The Federal Reserve raised benchmark rates 11 times from March 2022 to July 2023, per Federal Reserve records. Higher rates weighed on growth stocks like Atlassian.
Q4 FY2024 Results Show Revenue Growth
Subscription revenue reached $1.10 billion USD in Q4 FY2024, ended June 30, 2024, up 21% year-over-year, per Atlassian's investor relations site.
Cloud revenue rose 37% to $1.46 billion USD, or 80% of total revenue. The net retention rate measured 118%. The dollar-based net expansion rate hit 131% for cloud customers.
Operating margin improved to 12%, per the Aug. 1, 2024 earnings release on Atlassian's investor relations site.
Product Updates Support Demand
Atlassian added AI-powered editing tools to Confluence in July 2024, per TechCrunch. The company launched Rovo AI agent for natural language queries across products.
Cloud subscriptions generated gross margins of 97%, per Q4 FY2024 earnings. The SaaS model provides predictable revenue.
Position in DevOps and IT Markets
Jira Cloud holds 40% market share in agile project management tools, per Gartner's Magic Quadrant for Adaptive Project Management and Reporting, June 2024.
The Atlassian Marketplace offers integrations with over 1,000 apps. Trello serves SMBs with kanban boards alongside Jira for enterprises.
ServiceNow (NYSE: NOW) shares rose 15% year-to-date to $850 on Oct. 10, 2024, per Yahoo Finance.
Analyst Ratings and Targets
JPMorgan analyst Mark Murphy reiterated an Overweight rating on TEAM with a $220 price target on Oct. 8, 2024, per Barron's.
Piper Sandler maintained Overweight with a $225 target. The consensus target price reached $212.50 from 28 analysts, implying 25% upside from $170.15, per Yahoo Finance on Oct. 10.
Forward P/E stands at 52x FY2025 EPS estimate of $3.28, above the sector average of 35x, per Yahoo Finance data.
Fear & Greed Index Components
The index at 33 on Oct. 10 reflected VIX at 20.5, put/call ratio at 1.1 and weak junk bond demand, per CNN Money methodology.
The index hit a low of 9 in August 2024 before rebounding, per CNN Money historical data.
Atlassian carries a beta of 1.4 relative to the Nasdaq Composite, per Yahoo Finance.
Q1 FY2025 Earnings Outlook
Atlassian reports Q1 FY2025 results on Oct. 31, 2024. FactSet consensus forecasts $1.16 billion USD in revenue, up 18% year-over-year.
FY2025 revenue guidance spans $4.92 billion to $4.96 billion USD. Shares rose 5% after Q4 results, per Bloomberg Terminal data.
Atlassian stock closed at $170.15 on Oct. 10, 2024, per Bloomberg.
Frequently Asked Questions
Why did Atlassian stock drop 87%?
Shares fell from $482.81 peak in Nov. 2021 to $170.15 on Oct. 10, 2024, amid rate hikes and tech selloff, per Bloomberg.
What does CNN Fear & Greed Index at 33 mean?
The index at 33 on Oct. 10, 2024, indicates fear, based on VIX, put/call ratio and other factors, per CNN Money.
What were Atlassian's Q4 FY2024 results?
Cloud revenue grew 37% to $1.46 billion USD, subscription revenue up 21% to $1.10 billion USD, per investor relations.
What do analysts say about Atlassian stock?
Consensus target $212.50 from 28 analysts; JPMorgan's Mark Murphy at $220 Overweight, per Yahoo Finance and Barron's.
