What matters to most investors is how much a stock’s price changes over time. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, especially with tech giants and popular consumer-oriented stocks.
What if you had invested in Atlassian (TEAM) ten years ago? It may not have been easy to stick with TEAM all this time, but if you did, how much would your investment be worth today?
With that in mind, let’s take a look at Atlassian’s key business drivers.
Atlassian is a global leader and innovator in business collaboration and workflow software. The company offers a range of cloud-based software solutions that help organizations collaborate and manage their workforce, helping teams work better together.
Initially, Atlassian products were designed to help software development teams communicate, collaborate, and manage the software design and delivery cycle. However, over the years, the use of Atlassian solutions has expanded virally to teams across industries. With its continued focus on developing new collaboration tools, the company now meets the needs of various business functions, including financial, legal, human resources and IT support.
The company has more than 300,000 customers in 200 countries and virtually every industry sector. More than 80% of Fortune 500 companies, including General Motors, Bank of America, Merrill Lynch and Verizon, currently use at least one Atlassian solution.
The company has 13 sets of solutions, divided into four product categories: Plan, Track and Support; To collaborate; Code, build and ship; and Security & Identity. Of these 13 products, Atlassian’s JIRA, Confluence, Bitbucket, and Trello are the most notable.
The company’s JIRA team collaboration software is a leader in the software development community. Atlassian’s continued focus on adding new features to JIRA software according to customer requirements has given the company an edge over competitor offerings, including Broadcom’s Rally Software, Microsoft’s Azure DevOps Server and IBM’s Rational.
The Confluence solution allows teams to create, share, and collaborate on content. Atlassian’s Bitbucket is used by professionals for code sharing. The Trello software adds a visual component that allows organizations to keep track of who is working on which project and how far they have come.
Atlassian generates revenue primarily through subscriptions, maintenance, perpetual licenses, and other sources. Subscriptions and maintenance together contributed approximately 94% of fiscal 2025 revenues of $5.2 billion.
Anyone can invest, but building a successful investment portfolio requires a combination of a few things: research, patience, and a little bit of risk. So if you invested in Atlassian ten years ago, you probably feel good about your investment today.
According to our calculations, a $1,000 investment in December 2015 would be worth $5,783.41, or a 478.34% gain, on December 29, 2025, and this return excludes dividends but includes price appreciation.
The S&P 500 rose 236.24% over the same period and gold prices rose 307.77% in comparison.
Going forward, analysts expect more upside potential for TEAM.
Atlassian is benefiting from rising demand for remote working tools amid the hybrid working trend and accelerated digital transformation. An improvement in product quality and performance, multiple product launches, transparent pricing and a unique sales strategy are the benefits. Expanding the product portfolio through acquisitions is expected to drive growth momentum. The company’s focus on adding generative AI features to some of its collaboration software will likely drive revenue. However, slowing customer growth makes us somewhat cautious about the near-term prospects. Reducing IT spending amid macroeconomic headwinds could hurt growth in the short term. Increasing competition in the team collaboration and workflow software market is putting pressure on margins. The stock has underperformed the sector so far.
Shares are up 9.12% over the past four weeks and there have been 12 higher earnings estimate revisions for fiscal 2025, compared to none lower. The consensus estimate also rose.
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Atlassian Corporation PLC (TEAM): Free Stock Analysis Report
This article was originally published on Zacks Investment Research (zacks.com).
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