Atlassian / $TEAM: -20% in 2 weeks, why?

Hi, bonsoir, hallo,

I bought a few TEAM stocks in 2016 (200x TEAM $23.30 = $4660). I just kept it in my portfolio watching it grow (about 1400% increase since, value on 01.01.2022: $76’000).

Since the beginning of 2022, it’s losing value day after day: (date / stock value / total value)

  • 01.01.2022 $381 $76’000
  • 04.01.2022 $350 $70’000 -8.8%
  • 05.01.2022 $334 $67’000 -4.4%
  • 06.01.2022 $311 $62’000 -7%
  • 13.01.2022 $298 $59’500 -7%

Normally I just hold, but here after losing potential gain of about $16’500 in 2 weeks, I’m wondering why it keeps crashing.

Nothing new nor relevant under https://investors.atlassian.com/financials/quarterly-results/default.aspx, https://investors.atlassian.com/financials/sec-filings/default.aspx , https://investors.atlassian.com/news/default.aspx or the financial news pages.

Is there anything I missed or any hints about what is happening ? Maybe a lot of internal stock sales from board ? I’m just an hobby investor, with more or less luck, and this is bugging me a bit :slight_smile:

Thanks.

Do you still plan on holding? If not, what would make this situation abnormal? Individual stocks come down 20% on a regular enough basis, especially after a good run up.

The Nasdaq has been going down more than the S&P500 since the start of the year, I guess market participants consider that something in what they expect to be the future would be bad for tech stocks. Atlassian could be caught in that wave, or there could be something specific to the company.

2 Likes

Thanks for your reply @Wolverine, yes of course fluctuations are normal, I was just wondering about the reasons for the ones of the last 2 weeks.

But I think I should have checked the graphs over a longer time before posting : now it seems clear the trend started on 01.11.2021 (stock price $450 then, today at close: $298), just after the fiscal year results publication (Atlassian - Atlassian Announces First Quarter Fiscal Year 2022 Results). So I guess it’s just some more investors/funds noticing the results and reacting.

Not sure about what to do, the company and the products are (still) good. I’ll probably still hold some more time and forget about it, as I have no use for the money there right now. Maybe Microsoft or another big one will want to take them over…

Best regards & nice evening to you.

Maybe.

Then again, the company hasn’t turned a profit since you bought your stock in 2016.

5 Likes

Would you buy it today for that price?

4 Likes

Can you explain where/how do you see that in their financial statement? I’m learning how to read those, still a beginner and it’s not that clear when I look at their data (but not sure I look at the right place)

One of the reasons might be that supply > demand

The stock has outperformed the market since 2016, no reason to worry

Could just be caught up in general market adjustment?
Article is from Dec 8 2021. I could not find an up to date chart.

image

1 Like

Can you explain where/how do you see that in their financial statement?

Atlassian - Financials - Annual reports → page 6 for example.

Or for 2021 and 2022: https://investors.atlassian.com/news/news-details/2021/Atlassian-Announces-First-Quarter-Fiscal-Year-2022-Results/default.aspx: " Net Loss and Net Loss Per Diluted Share: Net loss was $400.1 million for the first quarter of fiscal year 2022, compared with a net loss of $21.6 million for the first quarter of fiscal year 2021."

That is a very good question of course…

As a user of JIRA for 15 years, I hope Atlassian dies in the most painful way.
Ok not relevant to the discussion but it is one of my pet peeves :slight_smile:

9 Likes

The resident accounting gurus on the forum surely explain it better than I.

But for starters look at operating income and net income. Keep in mind that these figures can be manipulated by accounting and that these figures in the income statement aren’t the only important ones (-> debt & cash flow).

LOL :rofl: I feel you.
But what would you use as an (corporately accepted) alternative?

1 Like

Growth stocks are being slaughtered because there was a bit of euphoria - the multiples were ridiculous, see graph below.

Also, now we are seeing the Fed stoping the money printing + raising rates to fight inflation. In this scenario, discounted future cash flows to the present value, are worth less. Also, these companies typically are still burning cash to keep expanding, so it will also be more costly to borrow more money / pay the current debt.

$TEAM is probably in the Mid Growth in the graph, getting closer to pre-covid multiples, however from a technical perspective, the next resistance is at $260-270.

Looks like $TEAM is a big part of your portfolio, so maybe you should think of diversifying.

image

1 Like

Personally, I’m happy with GitLab.

3 Likes

I don’t have an alternative, unfortunately. We use extensively the customization options.

Yet, I feel that Atlassian does not give any consideration to its users. There are bugs reports and basic feature requests that are 18 years old.

1 Like

I use Microsoft Azure DevOps and happy with it.

1 Like
By reading and partipating to this forum, you confirm you have read and agree with the disclaimer presented on http://www.mustachianpost.com/
En lisant et participant à ce forum, vous confirmez avoir lu et être d'accord avec l'avis de dégagement de responsabilité présenté sur http://www.mustachianpost.com/fr/