Can Atlassian Stock Recover If Markets Fall?

TEAM: Atlassian logo
TEAM
Atlassian

Atlassian (TEAM) stock is down 14.9% in 21 trading days. The recent slide reflects renewed concerns around slowing growth in its collaboration software and AI competition, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?

Before judging its downturn reslience, let’s look at where Atlassian stands today.

  • Size: Atlassian is a $36 Bil company with $5.5 Bil in revenue currently trading at $137.89.
  • Fundamentals: Last 12 month revenue growth of 19.5% and operating margin of -3.6%.
  • Liquidity: Has Debt to Equity ratio of 0.03 and Cash to Assets ratio of 0.49
  • Valuation: Atlassian stock is currently trading at P/E multiple of -196.2 and P/EBIT multiple of -389.2
  • Has returned (median) 2.1% within a year following sharp dips since 2010. See TEAM Dip Buy Analysis.

These metrics point to a Strong operational performance, alongside Moderate valuation – making the stock Attractive. For details, see Buy or Sell TEAM Stock

That brings us to the key consideration for investors worried about this fall: how resilient is TEAM stock if markets turn south? This is where our downturn resilience framework comes in. Suppose TEAM stock falls another 20-30% to $97 – can investors comfortably hold on? Turns out, the stock saw an impact slightly better than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.

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2022 Inflation Shock

  • TEAM stock fell 74.6% from a high of $458.13 on 29 October 2021 to $116.34 on 22 November 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
  • The stock is yet to recover to its pre-Crisis high
  • The highest the stock has reached since then is $322.94 on 10 February 2025 , and currently trades at $137.89

  TEAM S&P 500
% Change from Pre-Recession Peak -74.6% -25.4%
Time to Full Recovery Not Fully Recovered 464 days

 
2020 Covid Pandemic

  • TEAM stock fell 21.9% from a high of $154.42 on 14 February 2020 to $120.57 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
  • However, the stock fully recovered to its pre-Crisis peak by 30 April 2020

  TEAM S&P 500
% Change from Pre-Recession Peak -21.9% -33.9%
Time to Full Recovery 45 days 148 days

 
2018 Correction

  • TEAM stock fell 30.2% from a high of $96.14 on 28 September 2018 to $67.12 on 24 October 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
  • However, the stock fully recovered to its pre-Crisis peak by 31 January 2019

  TEAM S&P 500
% Change from Pre-Recession Peak -30.2% -19.8%
Time to Full Recovery 99 days 120 days

 
Feeling jittery about TEAM stock? Consider portfolio approach.

Smart Investing Begins With Portfolios

Individual stocks are unpredictable. A smart portfolio keeps you invested, limits downside shocks, and provides upside exposure

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.