Atlassian (TEAM) Fell Amid Concerns Over AI Dominance

Sands Capital, an investment management company, released its “Sands Capital Select Growth Strategy” Q3 2025 investor letter. A copy of the letter can be downloaded here. U.S. large-cap growth equities continued to recover from a sharp sell-off in early April. Strong corporate earnings, investor enthusiasm around artificial intelligence (AI), and growing expectations for Federal Reserve policy easing drove the robust gains. The portfolio returned 6.3% (net) in the quarter, compared to the benchmark’s 10.5% gain. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its third-quarter 2025 investor letter, Sands Capital Select Growth Strategy highlighted stocks such as Atlassian Corporation (NASDAQ:TEAM). Atlassian Corporation (NASDAQ:TEAM) is a leading collaboration software provider that enables organizations to connect all teams through a system of work that unlocks productivity at scale. The one-month return of Atlassian Corporation (NASDAQ:TEAM) was -7.06%, and its shares lost 43.60% of their value over the last 52 weeks. On November 26, 2025, Atlassian Corporation (NASDAQ:TEAM) stock closed at $148.03 per share, with a market capitalization of $38.966 billion.

Sands Capital Select Growth Strategy stated the following regarding Atlassian Corporation (NASDAQ:TEAM) in its third quarter 2025 investor letter:

“Atlassian Corporation (NASDAQ:TEAM) is a leading software-application vendor that creates tools to enhance team collaboration and productivity. Shares continue to face the overhang of concerns that AI could constrain developer headcount growth or reduce the need for workflow management software. These fears stand in contrast to strong business results, as year-over-year sales growth reaccelerated above its two-year average, driven by robust enterprise adoption, expanding paid seats, and more frequent upgrades. Atlassian also reported 2.3 million monthly active users of its AI products, with platform interactions increasing 20 times compared with a year ago.”

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Atlassian Corporation (NASDAQ:TEAM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 64 hedge fund portfolios held Atlassian Corporation (NASDAQ:TEAM) at the end of the second quarter, compared to 82 in the previous quarter. In the first quarter of fiscal 2026, Atlassian Corporation’s (NASDAQ:TEAM) revenue grew 21% year-over-year to $1.4 billion. While we acknowledge the risk and potential of Atlassian Corporation (NASDAQ:TEAM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Atlassian Corporation (NASDAQ:TEAM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Atlassian Corporation (NASDAQ:TEAM) and shared Baron Technology Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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