Legacy software stocks have had a rough 2026 so far, amid fears of disruption from artificial intelligence (AI) that have crushed sentiment for such titles.
One company swept up in this is Atlassian (TEAM 0.39%), and on Tuesday, that sentiment was dealt another blow by an analyst's deep price target cut. Atlassian didn't decline much, but it did fall, sliding by nearly 0.4% at market close.
Software softness
The person making this move was Ryan MacWilliams of storied international bank Barclays. Early Tuesday morning, he reduced his price target on Atlassian stock to $100 per share from $165. Despite that rather significant adjustment, MacWilliams remained bullish on the company's future, as he maintained his recommendation of overweight (buy, in other words).
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According to reports, the reduction was part of a broader set of adjustments to the software stocks in Barclays ' tech sector coverage. MacWilliams wrote that the quarterly results from industry companies during the current earnings season might not be sufficiently robust to flip investor sentiment positive. He sounded a cautious note about software stocks generally, and Atlassian specifically.
Despite this, he still finds much to like about the company. He waxed positive about its recent success in growing revenue from trends in cloud computing and in attracting more business. And addressing those worried about AI disruption, he wrote that key Atlassian products Jira and Confluence are relatively resistant to this for now.
NASDAQ: TEAM
Key Data Points
A business with good instincts
For quite some time, I've felt that Atlassian has a finely tuned sense of what its client base wants and needs. As a user of products like Jira and Confluence myself, I find the company's software to be refreshingly intuitive (and therefore easy to use) and reliable, and I'd imagine many other folks also find the tools similarly useful.
I'm bullish on this company's future, and I think it's been unfairly punished in the Great Software Stock Rout of 2026.
