Atlassian Corp (NASDAQ:TEAM) stock is up 2.9% to trade at $77.66 at last check, after the company unveiled plans to cut 10% of its workforce, citing AI advancements. In an unorthodox approach, the software name noted those impacted will receive bonuses, extended health insurance for six months, full payment of planned parental leave, and a $1,000 stipend once company laptops are returned.
Mizuho quickly responded with a price-target cut to $185 from $205, but maintained its "outperform" rating. Heading into today analysts are extremely bullish, with 21 of the 28 in coverage carrying a "buy" or better recommendation.
TEAM has been on an extended pullback since tapping a three-year high in February 2025. Overhead pressure in 2026 has stemmed from the descending 20-day moving average, with the equity now off 65% year-over-year, and trading at a level not seen since 2018.
Despite its long-term underperformance, bulls have been circling. This is per TEAM's 50-day call/put volume ratio of 3.35 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 99% of annual readings. Echoing this, the security's Schaeffer's put/call open interest ratio (SOIR) of 0.44 ranks in the 6th annual percentile.
Plus, Atlassian stock's Schaeffer's Volatility Scorecard (SVS) comes in at 73 out of 100. In other words, shares have consistently realized higher volatility than its options have priced in over the past 12 months.
