Atlassian shares fall nearly 5% as Raymond James cuts 2027 estimates on Data Center headwinds

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Atlassian slides 4.85% today

Highlights

Raymond James maintained its Outperform rating on Atlassian but revised 2027 estimates lower due to anticipated Data Center headwinds.
Atlassian reached a major milestone with its 39-storey Sydney headquarters, progressing toward completion despite sustained selling pressure.
The stock trades below key moving averages with sellers dominating intraday; expected five-day range is $80.92 to $90.59.

Fiscal 2027 outlook cut as data center challenges persist

Raymond James reiterated its Outperform rating on Atlassian, keeping fiscal 2026 revenue and earnings targets steady but reducing fiscal 2027 estimates in response to expected challenges in its Data Center business. Atlassian also reported achieving a significant milestone in constructing its new Sydney headquarters, with the 39-storey hybrid timber tower set for completion next year. The achievement was accompanied by ongoing selling pressure in the stock price action.

Anton Kharitonov, expert at Traders Union, sees persistent weakness in Atlassian as the price remains below all major moving averages. He notes Raymond James’ downward revision for 2027 and the pronounced selling pressure despite the company reporting a milestone in its Sydney HQ project. Kharitonov points out mixed momentum signals do not invalidate the overall bearish trend, especially given long-term MA positioning. He finds the bullish technical hints unconvincing with volatility elevated and sentiment deteriorating. "Until TEAM reclaims key technical levels, I see the risks of further downside outweighing short-term rebounds."

Viktoras Karapetjanc, expert at Traders Union, believes the market is overreacting to the near-term Data Center headwinds. He views Raymond James' maintained outperform rating and stable 2026 outlook as a strong vote of confidence. Karapetjanc sees the Sydney headquarters milestone as evidence of strategic execution and future growth. In his view, technical signals hint at an imminent rebound if the $86.45 resistance breaks. "As long as structural positives persist, traders should look for setups near support — upside opportunities remain compelling."

Bearish long-term trend as momentum signals diverge near support

TEAM is trading below its 20-day ($86.45), 50-day ($89.27), and 200-day ($111.15) moving averages, indicating seller dominance over the short, medium, and long-term timeframes. Resistance is noted at $86.45, while support lies at $85.83, as marked by the Ichimoku Kijun. The long-term trend remains bearish, given the position of MA-50 versus MA-200. Momentum signals are mixed: MACD and RSI show buying interest, whereas ADX is neutral and Stochastic RSI highlights ongoing selling. CCI and Awesome Oscillator both issue buy signals. Bull/Bear Power reflects buyer control intraday, but overbought readings indicate stretched conditions. TEAM recently fell to $86.21, down $4.39 or 4.85%, with the price near session lows and volatility at 6.61%. Intraday sentiment is pressured, with selling dominant after the open, as momentum readings diverge from the sharp move lower.

Earlier, analysts noted that Atlassian’s technical outlook was improving in the short term even as volatility heightened downside risks amid overextended momentum indicators. The latest developments reinforce the persistence of bearish pressure, making a decisive move above $86.45 or below $85.83 the key signal for the next directional trend.

Source of Data: TEAM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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