Cramer Says Atlassian Trades at 20x 2026 Earnings After 70% Drop
Atlassian shares have plunged over 70% from their 52-week high despite reporting a beat-and-raise quarter that underpins a forecasted 30% earnings growth this year. The stock trades at just 20 times projected 2026 earnings, falling a further 4% as analysts questioned elevated R&D spending.
1. Cramer Highlights Valuation Opportunity
Jim Cramer described Atlassian as “absurdly cheap” at 20 times projected 2026 earnings, noting the more than 70% decline from its 52-week high reflects overblown fears rather than immediate business deterioration.
2. Q2 Beat and Market Reaction
Atlassian delivered a beat-and-raise quarter, supporting a near 30% earnings growth outlook for the year, yet shares slid 4% as analysts scrutinized the company’s ramped-up R&D investments.
3. AI Threat and Growth Outlook
While Cramer conceded that AI could pose a long-term threat to Atlassian’s collaboration tools for developers, he argued such risks are not imminent, making sustained R&D spend and execution critical to maintaining investor confidence.