Should You be Confident in Atlassian’s (TEAM) Long-Term Growth Drivers?

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund’s Investor Class fund ARTMX returned 14.40%, Advisor Class fund APDMX posted a return of 14.45%, and Institutional Class fund APHMX returned 14.50%, compared to a 18.20% return for the Russell Midcap Growth Index. Global markets experienced a significant but volatile Q2, rotating from double-digit declines to double-digit gains. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks such as Atlassian Corporation (NASDAQ:TEAM). Atlassian Corporation (NASDAQ:TEAM) is a company that designs, develops, licenses, and maintains various software products. The one-month return of Atlassian Corporation (NASDAQ:TEAM) was -7.27%, and its shares gained 33.66% of their value over the last 52 weeks. On August 7, 2025, Atlassian Corporation (NASDAQ:TEAM) stock closed at $185.50 per share, with a market capitalization of $48.695 billion.

Artisan Mid Cap Fund stated the following regarding Atlassian Corporation (NASDAQ:TEAM) in its second quarter 2025 investor letter:

Among our top detractors were Baker Hughes, Argenx and Atlassian Corporation (NASDAQ:TEAM). Atlassian is a leading provider of innovative, customizable team collaboration software tools. The company reported modestly disappointing quarterly results in May, following two prior quarters of solid results, due in part to delays in signing some large enterprise contracts. Other potential headwinds, such as tariff pressure on customers’ software budgets and the potential impact of artificial intelligence (AI) on knowledge worker jobs, also weighed on investors. We have been monitoring these potential headwinds but don’t see any change in Atlassian’s long-term profit cycle, and we remain confident in the potential of several company-specific, multiyear growth drivers. And with the hiring of a new chief revenue officer in late 2024, Atlassian is working to enhance its senior management talent in sales, marketing and R&D. With the stock trading at an attractive valuation, we added modestly to our position.

Why Atlassian Corporation (TEAM) Went Down On Friday?

A group of executives in a board room discussing the latest software innovation.

Atlassian Corporation (NASDAQ:TEAM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 82 hedge fund portfolios held Atlassian Corporation (NASDAQ:TEAM) at the end of the first quarter compared to 75 in the previous quarter. Atlassian Corporation (NASDAQ:TEAM) generated revenue of $1.4 billion in the third quarter of 2025, representing 14% year-over-year increase. 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 the list of best growth stocks to buy and hold for 3 years. Atlassian Corporation (NASDAQ:TEAM) detracted from Sands Capital Technology Innovators Fund’s performance in Q2 2025. In addition, please check out our hedge fund investor letters Q2 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.