Jim Cramer on Atlassian Corporation: "It's Absurdly Cheap Unless You Think the Business Is About to Fall off a Cliff

Atlassian Corporation (NASDAQ:TEAM) is one of the software stocks that Jim Cramer named as potential undervalued buys. Cramer highlighted why the stock has been “obliterated,” as he remarked:

Now, a little more controversial. Let’s talk Atlassian, symbol TEAM, another collaboration software firm, mainly aimed at software developers. Because they make software for coders, and coding jobs are under threat from AI, the stock’s been obliterated, down over 70% from its 52-week high. But when Atlassian reported last night, it delivered a terrific beat and raise quarter.

It’s just that Wall Street didn’t care as the analysts nitpicked the company’s R&D spending, so the stock tumbled another 4% today. At this point, though, Atlassian’s expected to put up nearly 30% earnings growth this year. Yet the stock sells for just 20 times its 2026 earnings estimates. Look, it’s absurdly cheap unless you think the business is about to fall off a cliff, and some people think that. I do think AI is a real threat here, but my gut feeling says it’s a long-term threat, not something immediate.

Atlassian Corporation (NASDAQ:TEAM) develops collaboration and productivity software that connects teams and streamlines workflows.

While we acknowledge the potential of TEAM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.