2024-06-20 04:40:07 ET
Summary
- I'm passing on Atlassian stock because its current valuation requires an unrealistically rosy outcome to be worthwhile.
- Atlassian's revenue growth rates are decelerating, making it less attractive compared to other bargains in the market.
- Given its challenges in re-accelerating growth, I'm not convinced it's a buy.
Investment Thesis
Atlassian ( TEAM ) is richly valued for what it offers investors. This business was once flying high and could be counted on for hyper-growth rates. Today, as its share price has come down, Atlassian is more sensibly priced at approximately 29x next year's non-GAAP operating profits....
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For further details see:
Atlassian: Collaboration Kings With A Cloudy Future