1. Atlassian Corporation (NASDAQ:TEAM)
Atlassian Corporation (NASDAQ:TEAM) earns a spot on our list of the 8 most undervalued cloud stocks to buy according to analysts.
As of March 20, 2026, analyst sentiment toward the company remains bullish. Roughly 80% of analysts covering the stock maintain bullish ratings on Atlassian Corporation (NASDAQ:TEAM), with a consensus price target of $150.00, indicating a 101.07% upside.
As the company transitions toward artificial intelligence and enterprise sales, Atlassian Corporation (NASDAQ:TEAM) plans to lay off approximately 1,600 employees. The figure is approximately 10% of the company’s workforce, according to a Reuters report published on March 11, 2026. As a result of the layoffs and office space reductions, the company anticipates restructuring costs ranging from $225 million to $236 million.
Following this announcement, Atlassian Corporation (NASDAQ:TEAM) shares rose by almost 2% during extended trading. This is an indication of investor optimism toward improved efficiency that will come with this decision.
CEO Mike Cannon-Brookes, while noting that AI is transforming workforce requirements, emphasized changes required in the skill set rather than simply removing workers.
The majority of job cuts will occur in North America (40%), followed by Australia (30%), and India (16%). The initiative is scheduled for completion by the fourth quarter, coinciding with the departure of CTO Rajeev Rajan on March 31.
Analysts see the action as a sign of a larger industry revolution, with companies using AI to enhance operations and increase profits.
On this occasion, DA Davidson’s analyst Gil Luria commented,
“Software companies such as Atlassian have an opportunity to make their business more efficient by adopting AI tools, especially within product development. By reorganizing that way, they can reduce the resources necessary to deliver their current business and grow more profitably.”
Atlassian Corporation (NASDAQ:TEAM) offers software for collaboration and productivity, including Jira, Confluence, Jira Service Management, and Loom. Established in October 2002, it is based in San Francisco, California.
While we acknowledge the potential of TEAM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TEAM and that has 100x upside potential, check out our report about the cheapest AI stock.
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