What Happened?
Shares of collaboration software company Atlassian (NASDAQ:TEAM) fell 4.4% in the morning session after reports revealed competitive pressures from a new artificial intelligence (AI) feature released by Anthropic.
Anthropic's new feature, "Cowork," was built to be particularly good at task management. This development was viewed as a direct challenge to Atlassian, an enterprise software developer known for its own project and task management tools. The introduction of a powerful AI agent capable of performing similar functions raised concerns among investors about Atlassian's competitive position and future growth.
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What Is The Market Telling Us
Atlassian’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 3.3% on the news that President Trump cooled fears of a transatlantic trade war by calling off scheduled tariffs on European allies.
The rally followed a productive meeting in Davos with NATO Secretary General Mark Rutte, where a "framework of a future deal" regarding Greenland and the Arctic region was established. By explicitly ruling out the use of military force and suspending the 10% tariffs previously set for February 1st, the administration provided the "sigh of relief" the market desperately needed after Tuesday's sharp sell-off. Technology and semiconductor leaders like Nvidia and AMD spearheaded the recovery as investors quickly pivoted back into growth stocks. The "Sell America" trade from the prior session reversed sharply, with the Nasdaq Composite jumping 1.5% and the S&P 500 erasing its 2026 losses. This rebound was further supported by a stabilization in the bond market; as tariff-related inflation fears subsided, the 10-year Treasury yield retreated from its recent highs, creating a more favorable backdrop for equity valuations across the board.
Atlassian is down 14.6% since the beginning of the year, and at $132.15 per share, it is trading 59.1% below its 52-week high of $322.94 from February 2025. Investors who bought $1,000 worth of Atlassian’s shares 5 years ago would now be looking at an investment worth $608.14.
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