Billionaire Atlassian co-founder Scott Farquhar has hardly slackened off since quitting as co-chief executive officer last year. He’s now super fit, roams the world and schedules one-on-ones with his kids https://t.co/yUVba6OdSF ...

I recently joined The REIT Forum and if you are looking for more investment ideas like this one, get them exclusively at The REIT Forum with access to our subscriber only portfolios.Atlassian Corporation ( TEAM ) reported its Q1 FY26 earnings at the end of October, and while the stock popped initially after earnings, it has since given up all its gains. While much ofAmrita runs a boutique family office fund in beautiful Vancouver, where she leads the investment strategy for the family fund. The fund's objec ...

Group 1 - The stock market has experienced a significant rally this year, but the gains have been unevenly distributed among investors [1] - The primary factor distinguishing winners from losers in the market is the perception of how artificial intelligence (AI) will impact various sectors [1] - Gary Alexander, with extensive experience in technology and investment, has been actively contributing insights on industry trends since 2017 [1]

Core Insights - The article highlights five AI-focused stocks in the Internet Software and Services sector that are expected to perform well in 2026, driven by increased IT spending and the growing demand for web-based infrastructure and applications [2][4]. Company Summaries Palantir Technologies Inc. (PLTR) - Palantir's AI strategy integrates its Foundry and Gotham platforms, promoting AI adoption in government and commercial sectors, with a focus on processing large datasets for real-time insights [5][6]. - The company is aligning its AI initiatives with U.S. defense priorities, showcasing its capabilities in high-profile projects like the Department of Defense's Open DAGIR [6]. - Palantir's AI Platform (AIP) has shown adaptability across various industries, with a strong customer base in government and large corporations [7][8]. - Expected revenue and earnings growth rates for Palantir are 41.1% and 43% respectively for the next year, with a 20.9% improvement in earnings estimates over the past week [9]. Snowflake Inc. (SNOW) - Snowflake is positioned to benefit from the rising demand for cloud-based data platforms, with its AI Data Cloud unifying structured and unstructured data [11]. - The cloud analytics market is projected to grow from $35.39 billion in 2024 to $130.63 billion by 2030, indicating a 25.5% CAGR, which supports Snowflake's growth trajectory [12]. - Snowflake's platform is gaining traction among large enterprises, enhancing their ability to manage data and improve customer experiences [13][14]. - Expected revenue and earnings growth rates for Snowflake are 22.3% and 33.9% respectively for the next year, with a 4% improvement in earnings estimates over the last 60 days [15]. Datadog Inc. (DDOG) - Datadog is experiencing growth due to new customer additions and increased adoption of its cloud-based monitoring platform amid digital transformation [16]. - The company unveiled over 125 new products at DASH 2025, including AI observability tools, which enhance customer engagement and competitive positioning [17][18]. - Datadog's expected revenue and earnings growth rates are 19% and 15.4% respectively for the next year, with a 0.9% improvement in earnings estimates recently [20]. Atlassian Corp. (TEAM) - Atlassian is benefiting from the demand for remote working tools, with significant adoption of its AI-powered features, showing a 25X year-over-year increase in AI interactions [21][22]. - The company's focus on generative AI features is expected to drive long-term revenue growth, particularly through collaborations with OpenAI [23]. - Expected revenue and earnings growth rates for Atlassian are 20.8% and 27.7% respectively for the current year, with a 0.6% improvement in earnings estimates recently [24]. Zoom Communications Inc. (ZM) - Zoom is capitalizing on the hybrid work trend, with AI-driven solutions like Zoom Doc and AI Companion seeing significant user growth [25][26]. - The AI Companion has achieved a fourfold increase in monthly active users year-over-year, enhancing operational efficiencies for customers [26][27]. - Expected revenue and earnings growth rates for Zoom are 3% and 0.1% respectively for the next year, with a 3.9% improvement in earnings estimates over the last 60 days [28].

Industry Overview - The Internet Software and Services sector is experiencing growth due to increased IT spending on hybrid operating environments and mobile device penetration, prompting businesses to invest in web-based infrastructure and security software [1] - The Internet Software industry is ranked in the top 28% of Zacks Industry Rank, indicating expected outperformance in the market over the next three to six months [2] Company Highlights Palantir Technologies Inc. (PLTR) - Palantir's AI strategy integrates its Foundry and Gotham platforms, focusing on AI adoption in government and commercial sectors, with an expected revenue growth rate of 41.1% and earnings growth rate of 43% for next year [6][10] - The company is involved in significant government projects, such as the Department of Defense's Open DAGIR initiative, enhancing military operations through AI [7] - Palantir's AIP boot camps have attracted over 1,000 companies, showcasing its platform's capabilities across various industries [8] Snowflake Inc. (SNOW) - Snowflake is set to benefit from rising demand for cloud-based data platforms, with an expected revenue growth rate of 22.3% and earnings growth rate of 33.9% for next year [11][15] - The cloud analytics market is projected to grow from $35.39 billion in 2024 to $130.63 billion by 2030, with a CAGR of 25.5%, supporting Snowflake's growth trajectory [12] - Snowflake's AI Data Cloud is gaining traction across multiple industries, enhancing enterprise capabilities in data management and analytics [14] Datadog Inc. (DDOG) - Datadog is experiencing growth from new customer acquisitions and increased adoption of its cloud-based monitoring platform, with an expected revenue growth rate of 19% and earnings growth rate of 15.4% for next year [16][20] - The company unveiled over 125 new products at DASH 2025, including AI observability tools, enhancing its competitive position [17][18] - Datadog's solutions are increasingly used to monitor AI-powered applications, driving broader product usage [19] Atlassian Corp. (TEAM) - Atlassian is benefiting from the demand for remote working tools, with a 25X year-over-year increase in AI interactions among over 1 million monthly active users [22] - The company's AI-powered Rovo platform and automation tools are driving growth in premium and enterprise editions [23] - Atlassian's collaboration with OpenAI to enhance its software with generative AI features is expected to boost revenue [24] Zoom Communications Inc. (ZM) - Zoom is capitalizing on the hybrid work trend, with its AI Companion achieving a fourfold increase in monthly active users year-over-year [26][27] - The platform's integration with third-party applications and custom AI functionalities is enhancing operational efficiencies for customers [28] - Zoom has an expected revenue growth rate of 3% and earnings growth rate of 0.1% for next year [29]

Baron Funds, an investment management company, released its “Baron Technology Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities rallied in the third quarter following the previous quarter. In the third quarter, the fund returned 5.89% (Institutional Shares) but underperformed the MSCI ACWI Information Technology Index's (the Benchmark) 12.76% return, Invesco QQQ Trust's (the QQQ) 8.94% return, and the S&P 500 index's 8.12% return. In addition, please check t ...

For Immediate Release Chicago, IL – November 6, 2025 – Stocks in this week’s article are — like Roku, Inc. ROKU, Universal Health Services, Inc. UHS, Atlassian Corp. TEAM. Buy These 3 Stocks with Upgraded Broker Ratings Right Now Investor sentiments have been bullish of late on the back of solid third-quarter earnings performance. While the government shutdown and resulting blackout of economic data are concerns, investors seem to be optimistic about the overall health of the economy. In September, the ...

Group 1 - Atlassian (TEAM) has shown a significant price increase of 17.2% over the past four weeks, with a mean price target of $235.32 indicating a potential upside of 33.6% from the current price of $176.08 [1] - The mean estimate consists of 25 short-term price targets with a standard deviation of $35.93, suggesting variability in analyst predictions; the lowest estimate is $178.00 (1.1% increase), while the highest is $320.00 (81.7% increase) [2] - Analysts have recently revised earnings estimates upward, indicating a positive trend that correlates with potential stock price increases, as the Zacks Consensus Estimate for the current year has risen by 191.4% [4][12] Group 2 - The Zacks Rank for TEAM is 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, which supports the stock's potential upside [13] - While price targets are often viewed as important metrics, they should be approached with skepticism due to historical inaccuracies in predicting actual stock movements [7][10] - A low standard deviation among price targets indicates a strong consensus among analysts regarding the stock's price direction, which can serve as a starting point for further research [9]

Core Insights - The Zacks Premium service provides tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [3] Zacks Style Scores Overview - The Zacks Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] - Value Score identifies undervalued stocks using financial ratios [4] - Growth Score assesses a company's financial health and future growth potential [5] - Momentum Score capitalizes on price trends and earnings outlook changes [6] - VGM Score combines all three styles to provide a comprehensive stock rating [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investment decisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 or 2, making it essential for investors to use Style Scores to narrow down choices [9] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks, even with good Style Scores, may still face declining earnings forecasts, increasing the risk of price drops [11] Company Spotlight: Atlassian - Atlassian is recognized as a leader in enterprise collaboration and workflow software, offering cloud-based solutions for organizational management [12] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong potential [12] - Atlassian's stock has shown a 17.2% increase over the past four weeks, supported by an upward revision in earnings estimates for fiscal 2026 [13] - The Zacks Consensus Estimate for Atlassian has risen by $0.12 to $4.28 per share, with an average earnings surprise of +20.7% [13]

Customer Metrics - As of September 30, 2025, the company had more than 300,000 customers, with 53,017 customers generating over $10,000 in annualized recurring revenue from Cloud offerings [119]. - The number of customers with greater than $10,000 in Cloud ARR increased from 51,978 in June 2025 to 53,017 in September 2025 [120]. Financial Performance - Total revenues for the three months ended September 30, 2025, increased by $244.8 million, or 21%, compared to the same period in 2024, reaching $1,432.6 million [139]. - Subscription revenues rose by $242.6 million, or 21%, driven by paid seat expansion and price increases, totaling $1,374.5 million for the period [140]. - Non-GAAP net income for the three months ended September 30, 2025, was $275.7 million, compared to $199.7 million in the same period of 2024 [172]. - Free cash flow for the three months ended September 30, 2025, was $114.6 million, an increase of $40.3 million compared to the same period in 2024, primarily due to higher net cash provided by operating activities [121]. - Free cash flow for the three months ended September 30, 2025, was $114.6 million, up from $74.3 million in the same period of 2024 [173]. Revenue and Cost Structure - Subscription revenues are expected to continue to be the primary driver of revenue growth, particularly from Cloud offerings, with fluctuations based on customer buying patterns [125]. - Cost of revenues increased by $40.3 million, or 19%, primarily due to restructuring charges of $31.6 million, resulting in a total cost of $257.9 million [143]. - The company anticipates an increase in costs of revenues as it continues to invest in its cloud-based infrastructure to support Cloud customers [128]. - Gross margin is expected to remain approximately flat, driven by optimization of Cloud infrastructure costs, despite a revenue mix shift from Data Center to Cloud offerings [129]. Expenses - Research and development expenses grew by $152.9 million, or 25%, totaling $756.0 million, mainly due to increased compensation expenses [144]. - Marketing and sales expenses increased by $84.0 million, or 33%, reaching $336.4 million, attributed to higher compensation and advertising costs [145]. - General and administrative expenses rose by $31.9 million, or 22%, totaling $178.5 million, primarily due to increased compensation and legal fees [146]. - The company recorded restructuring charges totaling $55 million for the three months ended September 30, 2025, including $27.9 million in severance and termination benefits [113]. Cash Flow and Investments - Net cash provided by operating activities increased by $48.2 million to $128.7 million for the three months ended September 30, 2025, compared to $80.5 million in the same period of 2024 [158]. - Net cash used in investing activities rose by $42.0 million to $60.7 million for the three months ended September 30, 2025, primarily due to strategic investments and acquisitions [159]. - Net cash used in financing activities increased by $66.1 million to $252.8 million for the three months ended September 30, 2025, mainly due to stock repurchases [160]. - The company repurchased approximately 1.4 million shares of Class A Common Stock for about $249.9 million at an average price of $180.74 per share during the three months ended September 30, 2025 [164]. - The company has $921.3 million remaining for repurchase under the 2024 Repurchase Program as of September 30, 2025 [164]. - The company acquired The Browser Company of New York Inc. for approximately $610 million, funded through existing cash [166]. - A definitive agreement was made to acquire A Software Company for approximately $1.0 billion, expected to close in the second quarter of fiscal year 2026 [167]. Other Financial Metrics - Other income increased by $38.2 million, or 197%, resulting in a net income of $18.8 million, compared to a loss of $19.4 million in the prior year [147]. - Interest income increased by $1.3 million, or 4%, totaling $29.8 million, due to higher investment income from increased cash balances [148]. - Interest expense rose by $1.3 million, or 18%, totaling $8.6 million, primarily due to the amortization of interest rate swap contracts [149]. - The provision for income taxes decreased by $98.1 million, primarily due to changes in the mix of earnings and losses in foreign jurisdictions [150]. - As of September 30, 2025, the company had cash and cash equivalents totaling $2.3 billion and marketable securities of $456.0 million [157]. Strategic Changes - The company plans to end-of-life its Data Center deployment offering, ceasing sales of term licenses to new customers in March 2026 and to existing customers in March 2028 [111]. - Research and development expenses focus on building new apps and AI agents, enhancing Cloud infrastructure, and advancing artificial intelligence capabilities [131]. - Restructuring charges included stock-based compensation expense related to the rebalancing of resources for the three months ended September 30, 2025 [175]. - There have been no material changes to market risk from the information presented in the Annual Report on Form 10-K for the year ended June 30, 2025 [176].