TEAM Stock Heads For Best Month Ever As Software Stocks Swing From ‘SaaSpocalypse’ To Full Revival In One Month

Strong quarterly results from Atlassian and a few other major SaaS firms are forcing investors to rethink the “SaaSpocalypse” thesis.

• Salesforce, ServiceNow, Workday, and CrowdStrike are also riding a broad software-sector recovery.
• Analyst optimism is high, but TEAM’s average $190.41 price target leaves little room for further gains.
• Stocktwits sentiment for TEAM was ‘bearish’ on Monday.

Atlassian Corporation Plc. is on track to close August on a memorable note, having gained nearly 90%, making it the best-performing Nasdaq-100 stock and putting it on track for its strongest monthly gain on record.

The rally marks a stunning reversal for Atlassian, a cloud-based software firm, which was among the software names battered earlier this year as investors feared AI agents could make traditional SaaS businesses obsolete. Atlassian’s latest results, however, have given investors a reason to rethink that thesis.

The company reported fiscal fourth-quarter revenue of about $1.77 billion, up 28% and ahead of Wall Street expectations, while adjusted EPS of $1.87 also comfortably beat estimates. 

Cloud revenue jumped 31%, reinforcing the view that customers are still spending heavily on Atlassian’s core products such as Jira and Confluence despite the rise of AI. The stock soared 35% on Aug. 7, the day after the company reported results.

TEAM Leads SaaS’ AI Rally, Powered By Strong Q4 Report

More importantly, investors appear increasingly convinced that AI could become a growth driver for Atlassian rather than a threat, a shift happening across the broader software space as well.

Atlassian has been pushing its Rovo AI tools deeper into its platform, while its Teamwork Graph gives it a large pool of enterprise data and context to power AI agents. Meanwhile, Atlassian announced that CEO Mike Cannon-Brookes intends to buy $250 million of the company’s shares, adding another confidence signal.  

Atlassian is not alone. Salesforce emerged as another major beneficiary of the software comeback, soaring 22.6% on Thursday after a strong quarter and an expanded partnership with Anthropic. 

ServiceNow has also rebounded sharply, helped by accelerating demand for its AI products, while Workday, CrowdStrike and Elastic have all delivered strong earnings-driven gains.  

The broader move is a remarkable turnaround from early 2026, when software stocks were caught in a brutal selloff dubbed the “SaaSpocalypse.” Investors worried that increasingly capable AI agents would reduce the need for traditional software subscriptions and compress pricing.

As of now, it appears that fears have not disappeared, but the latest earnings season is forcing a rethink, with companies showing that AI can be monetized through existing software platforms rather than simply replacing them. 

On the other hand, The Trade Desk emerged as the biggest loser in the S&P 500 index, falling 25% in August. Datadog and Akamai Technologies also fell.

Analyst, Retail View On TEAM

Several analysts, including those at Barclays and Citi, raised their price targets on TEAM following the company’s earnings report. Atlassian's positioning as a "System of Work" becomes increasingly important in the AI era as more code yields more collaboration, RBC Capital Markets said in its note,  adding that the company will continue to expand beyond its developer roots into knowledge workers.

Currently, 28 out of 33 analysts have a ‘Buy’ or higher rating on TEAM and the remaining five rate it ‘Hold,’ per Koyfin. Their average price target of $190.41 implies a mere 0.4% upside from the stock’s closing price on Friday.

On Stocktwits, retail sentiment for TEAM has stayed ‘bearish,’ unchanged from the start of last week. 

“$TEAM Warsh: inflation trends have not meaningfully improved, rates may need to go higher. Software held up anyway today,” wrote a trader, referring to the durability of software stocks when the markets fell on Friday after the Federal Reserve indicated its leaning for a rate hike.

Year to date, TEAM stock is up 17.5%.

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