Why did Atlassian’s share price just jump 35%?
Key takeaways
- Atlassian's share price surged 35% in after-hours trading on the NASDAQ exchange.
- The Australian software giant outperformed expectations and posted great quarterly results due to its AI tech.
- What's next: Australians who want to buy Atlassian shares will need to use a broker or platform with US market access.
Atlassian's share price soared 35% in extended-hours trading off the back of much better-than-expected quarterly results.
The Australian-based, NASDAQ-listed software giant's share price hit $110 USD as the company announced a quarterly revenue increase of 28% from a year ago.
Atlassian also recorded a $139 million USD profit for the quarter. It's a big turnaround from a year ago, when the company reported a $24 USD million loss.
A big turnaround and an AI success story
It's no secret Atlassian has struggled in recent years. Many investors worried that AI would render many of Atlassian's services obsolete.
Atlassian laid off 10% of its total workforce in March. And even after today's price surge the company's share price is still well down from its November 2021 peak of $440 per share.
But the AI doom and gloom appears to be misplaced. Rather than falling victim to the AI boom, Atlassian is selling the shovels on the way to the gold rush.
In its earnings report Atlassian touted AI achievements in its software tools and integration, and the success of its own AI agent Rovo.
As more businesses adopt AI, they're relying on companies like Atlassian to help them integrate AI into their software and build AI tools.
The layoffs and changes to how employees are remunerated almost certainly helped Atlassian return to profitability. Atlassian has scaled back the large share packages it offers to employees, replacing them with a mix of cash and equity.
How can Australians invest in Atlassian?
Despite being an Australian tech success story with headquarters in Sydney, Atlassian is listed on the tech-heavy US NASDAQ exchange under the ticker TEAM.
So Australians who want to invest can't buy Atlassian shares directly on the ASX.
Instead they can:
- Buy shares with a trading platform with US access. Many Australian investing platforms let you trade US stocks. Look for one that offers low brokerage fees, and be sure to factor in foreign exchange fees too.
- Invest via a NASDAQ ETF. Instead of investing in Atlassian directly, investors can buy ETFs with a tech flavour that include Atlassian and other software companies. And you can do this while staying with the ASX, with an option like the BetaShares NASDAQ 100 ETF.
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