Should You Hold Atlassian Corporation (TEAM)?

Sands Capital, an investment management company, released its “Sands Capital Technology Innovators Fund” Q2 2025 investor letter. A copy of the letter can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant long-term changes driven by technology. The fund returned 26.0% (net) in the second quarter compared to a 21.9% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. Easing geopolitical concerns, renewed AI optimism, resilient macroeconomic data, strong corporate earnings, and technical tailwinds boosted the markets for a quick recovery in the quarter. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its second quarter 2025 investor letter, Sands Capital Technology Innovators 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 1.23%, and its shares gained 12.69% of their value over the last 52 weeks. On July 24, 2025, Atlassian Corporation (NASDAQ:TEAM) stock closed at $199.83 per share with a market capitalization of $52.457 billion.

Sands Capital Technology Innovators Fund stated the following regarding Atlassian Corporation (NASDAQ:TEAM) in its second quarter 2025 investor letter:

“Atlassian Corporation (NASDAQ:TEAM) is a leading provider of software applications designed to improve team collaboration and productivity. Shares declined after first-quarter results revealed a narrower-than-expected beat on cloud revenue guidance. While the market reacted to the narrow beat, we do not believe it signals any erosion in the company’s competitive position or broader macroeconomic challenges. Enterprise seat expansion, product upgrades, cross-sells, and migrations from data center to cloud all tracked within or above expectations. Importantly, we continue to see no signs of weakness in the data supporting our view that Atlassian’s momentum with enterprise customers and newer offerings like Jira Service Management remains underappreciated.”

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 Q3 2025 revenue of $1.4 billion, 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 AI stocks that will skyrocket. 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.