Shares in Atlassian experienced a significant drop, falling 8.9 per cent to $US103.60 by 2.14pm in New York trading. The company’s decline is attributed to a broad sell-off affecting software stocks, spurred by growing concerns over the potential impact of artificial intelligence. Atlassian, a global software company, provides collaboration and productivity tools for teams. Its products include Jira and Confluence, which help teams organise, discuss and complete shared work.
Over the past few trading sessions, Atlassian’s stock has faced considerable downward pressure. The stock has slid more than 20 per cent in the last five trading sessions, more than 30 per cent in the last month and more than 40 per cent in the last six months. The current price is significantly lower than its record high of $US458.13, which was reached on October 29, 2021.
The situation has prompted industry commentators to use strong language. Jeffrey Favuzza from Jefferies described the market conditions as a ‘SaaSpocalypse,’ referring to an ‘apocalypse’ for software-as-a-service stocks. Favuzza noted the current trading pattern is characterised by urgent selling.
Bespoke Investment highlighted the broader implications of the software stock slump. In a note, the firm stated that the weakness in the software sector is beginning to affect the wider market. According to Bespoke Investment, the Nasdaq 100 has struggled to reach new highs in over three months, reflecting the spreading impact of the software sell-off.