Atlassian soars back as investors start to pick winners in the volatile tech market
Friday, February 19, 2016/
Atlassian has quickly bounced back from a slump in the stocks as investors begin to back winners in the volatile tech markets.
The Australian startup success story’s stocks have risen by up to 16% for the week, climbing to $US23.35, well above the initial $US21 trading price.
The workplace collaboration software company had been hit hard by the general selloff of tech stocks, falling by 15% the day after it announced strong financial results.
With widespread concerns surrounding overpriced tech companies, investors are beginning to zero in on the winners and Atlassian is top of the list.
“In tech stocks, investors haven’t wanted to try to call the bottom,” Piper Jaffray analyst Gene Munster tells The Wall Street Journal.
“What’s going on now is a sense that some tech companies are working and will rebound. People don’t want to be left out.”
With most tech companies offering stocks, it’s telling to see which ones surge back, R.W. Baird tech analyst Steven Ashley tells the WSJ.
“Everything is on sale, so investors are looking at what’s most interesting to them to own,” Ashley says.
Atlassian’s IPO in December last year was one of the few bright spots in a bad year for the tech markets and it seems investors are still backing the Aussie company which has been profitable for over a decade.
The startup announced impressive financial results earlier this month, with revenue rising by 45% year-on-year to $153 million for the second quarter of the fiscal year.
In the investor conference call, Atlassian co-founder Mike Cannon-Brookes said the company has lofty goals as it begins to target the “Fortune 500,000” companies around the world.
“We believe we’re just getting started,” Cannon-Brookes said.
“We’re truly just scratching the surface. We think we’re at the early stages of a very big wave.”