Pre-Market: 8:31AM EST
|Bid||103.50 x 800|
|Ask||106.01 x 800|
|Day's Range||103.32 - 104.63|
|52 Week Range||50.58 - 107.20|
|Beta (3Y Monthly)||1.45|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 17, 2019 - Apr 22, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||105.85|
Could jeans destroy the stock market's uptrend? Could Levi's be the straw that breaks the bull camel's back? When people try to fathom what can crush the animal spirits they always retreat to the same old same old -- a break-up of the trade negotiations with China, a more forceful Fed, another government shutdown.
Shares of DocuSign Inc. are up 1.2% in afternoon trading Wednesday after Deutsche Bank analyst Karl Keirstead upgraded the stock to buy from hold and raised his price target to $65 from $50. He wrote of "solid field checks" based on his conversations with large customers. "The overall software space appears to be powering through the recent macro/IT concerns, with several names (ServiceNow , Zendesk , Atlassian , RingCentral [s:rng] , Twilio ) posting accelerating growth, increasing our comfort with DocuSign's fiscal 2020 outlook," he wrote. Keirstead expects that customers wouldn't cut back on their DocuSign spending "even in a recession" due to cost savings. The stock has gained 25% over the past three months, as the S&P 500 has risen 1%.
After tech stocks ended 2018 on a treacherous note, the new year has brought renewed prosperity to the sector. Software stocks in particular are rallying.Adobe Systems (NASDAQ:ADBE) is no exception. From its recent low of $205 per share, the Adobe stock price is back up to $258. That puts ADBE stock within striking range of its all-time high price of $277.Across the sector, investors are chasing stocks to fresh new heights. On Monday, a variety of cloud and software plays hit 52-week or all-time highs. Among the names in that category were Shopify (NYSE:SHOP), Coupa Software(NASDAQ:COUP), Smartsheet (NYSE:SMAR), Atlassian (NASDAQ:TEAM), Workday (NASDAQ:WDAY), and VMware (NYSE:VMW), among others.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 U.S. Stocks That Are Coming to Life Again So Adobe stock should be going up, since the sector is on fire. Adobe's recent strong performance has little connection to its own particular fundamentals. And given the hotness of the tech sector, savvy traders should consider selling tech stocks and taking profits at this point. For Adobe, 2018 Was a Great YearAdobe has delivered impressive growth in recent years, and that trend continued in 2018. Rather remarkably, the revenue increases of both major Adobe business units were almost equal. The company's Digital Media unit, which accounts for roughly a third of its revenue, generated top-line growth of 27%. The sales of Adobe's core Digital Media business, which accounts for around 70% of Adobe's revenues, increased by 26%. With the revenue of both major divisions increasing more than 25% annually, the company is clearly doing well.You may have seen some griping about Adobe's last earnings report of 2018. The company's earnings per share did come in below analysts' consensus estimate, but its revenue came in above the consensus outlook. The earnings shortfall was due to costs related to Adobe's acquisition of Marketo. In the long-run, a near-term earnings miss due to M&A won't affect the company's outlook meaningfully.What is important is that Adobe is no longer just the world's best image-software company; it now offers a broader business solutions package. Adobe purchased both Marketo and Magento recently. Marketo does B2B marketing while Magento offers digital-marketing solutions. By offering its customers a rich suite of software solutions, Adobe has gained many synergies.Adobe's revenue jumped nearly 25% last year. Probably not coincidentally, Adobe stock rallied 29% in 2018. Investors tend to price a company like Adobe based on its sales, so it makes sense that ADBE stock rose during a year in which its revenue surged. However, the situation could change in 2019. Adobe Stock Is ExpensiveThose who are bearish on ADBE stock can point out an obvious, if true, statement: Adobe stock is really pricey. On a trailing basis, Adobe stock has a price-earnings ratio of 50. Now, to be fair, ADBE had some one-tine costs in 2018. But the company's forward P/E ratio stands at 27. That's still quite pricey, especially since analysts have already baked healthy growth into their 2019 projections.On a price-sales basis, ADBE stock looks even more expensive. It is currently going for more than 14 times its sales. The normal rule of thumb for fast-growing tech stocks is that they are valued fairly if they're trading at ten times their sales.Consider that even if Adobe's revenue jumps 24% again in 2019, it will still be selling for a touch over ten times its sales. Various peers of Adobe are selling for between eight and ten times their sales at the moment, suggesting that Adobe stock price could drop considerably if the valuation of ADBE stock drops to levels that are more in-line with the rest of the tech sector. How Much Can the Experience Cloud Grow?The big question for ADBE stock, at least for long-term investors, is how far its so-called experience cloud can run. After integrating Marketo, Magento, Tubemogul, and other acquisitions, Adobe is now seen as a leader in the still-emerging marketing-cloud space. As is often the case in tech, Adobe's first- mover advantage in that area appears to be huge.Bulls are buying up Adobe stock because of their belief that the company will become the entrenched leader in the space. Even so, it's worth asking just how much that achievement would be worth. Consider that the shares of the current leader of the marketing-software space, Salesfore.com (NYSE:CRM), are selling for just 9.5 times its sales.Adobe stock would have to drop around 30% to reach Salesforce's valuation. And Salesforce isn't exactly considered a value stock ,either. Salesforce has posted average annual revenue growth of 28% over the past five years, and analysts don't expect that to change much. Does Adobe stock deserve such a large premium over Salesforce's shares? The Verdict on Adobe StockGiven the great enthusiasm we are seeing for tech and software stocks, it seems tempting to hold Adobe stock into its earnings which are slated to be announced next month. However, I'd urge investors to be cautious about ADBE stock. Much of the recent gains of Adobe stock price have been triggered by the rallies of other cloud names.But Adobe still has to prove its own merits. Analysts will be looking at the company's M&A costs closely. And with 25% revenue growth already baked into investors' expectations, Adobe stock may not have all that much room to advance further even if its numbers are relatively strong.With tech stocks on fire, it seems like a good time to take some chips off the table, whether we're talking about ADBE stock or other names in the sector that are making fresh, new all-time highs.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 7 Forever Stocks to Buy for Long-Term Gains * 5 Self-Driving Car Stocks to Buy Compare Brokers The post Investors Should Sell Adobe Stock appeared first on InvestorPlace.
The best mutual funds just invested over $1 billion each in Netflix and Splunk, taking big positions in Veeva, Atlassian and ServiceNow as well.
Atlassian Corporation Plc , a leading provider of team collaboration and productivity software, today announced that members of senior management will present at the
Veeva Systems, Splunk, Horizon Pharma, Incyte, and Ciena are among 17 highly rated stocks expecting 52% to 2,200% Q4 earnings growth.
In this daily bar chart of TEAM, below, we can see an uptrend in place the past 12 months. The daily On-Balance-Volume (OBV) line has been moving from the lower left to the upper right on the chart which tells us we are in an uptrend. A rising OBV line signals that buyers of TEAM have been more aggressive.
Atlassian Corporation (TEAM) has seen solid earnings estimate revision activity over the past month, and belongs to a strong industry as well.
Cloud-software companies flew higher in Thursday trading after a strong earnings report from ServiceNow Inc. that sent that company's stock to record highs. ServiceNow headed more than 14% higher in Thursday trading, challenging for its largest single-day percentage gain in history, currently trailing only a 15.3% gain on April 25, 2013. The cloud-software company reported stronger-than-expected earnings after the bell Wednesday, thanks to strength with larger customers buying a range of services, according to analysts. "Turns out Enterprise still very interested in best-of-breed software platforms," Stifel analysts wrote while raising their price target on the stock from $180 to $210. Other cloud-software companies also hit all-time highs thanks to big gains, including security company Zscaler Inc. , which was up more than 6% Thursday; Workday Inc. , which was up more than 5%; and Atlassian PLC , which tied an intraday record high and was headed for a closing high with gains of more than 4%. The iShares Expanded Tech-Software Sector ETF was trading 2% higher, beating gains for the Nasdaq Composite Index and S&P 500 index.
Alphabet-unit Google could buy an enterprise software company to boost its cloud computing business, says a Wedbush Securities analyst, joining others on Wall Street.
At the opening bell on Friday, it looked like Atlassian (NASDAQ:TEAM) was set for a huge bull run following a blowout earnings report. TEAM stock opened at $99 and soon hit $100, which was a new all-time high. It would never manage to exceed $100, however, and by the end of the day, TEAM stock ended up taking a loss. Shares reversed 10% lower from the highs to close down slightly overall. * 7 Dark Horse Stocks You Really Need to Look at for 2019 Despite a strong stock market Friday, TEAM stock couldn't hold onto its early gains. What went wrong for Atlassian? It certainly wasn't the earnings report; earnings were excellent. Yet TEAM stock will have to wait a while before it tops $100 for the first time. Here's why… InvestorPlace - Stock Market News, Stock Advice & Trading Tips ### Great Expectations Atlassian is a classic example of investors pricing a stock for perfection. TEAM stock is selling at more than 20 times its trailing revenues. That's a crazy figure. Generally, the acceptable line is paying 10x revenues for a fast-growing tech company. Investors often experience bad results buying high-growth companies above the 10x sales level. At 20x sales, you need a business to perform perfectly for the stock to keep rising in the near-term. Notably, many of Atlassian's comparable peers are trading at far lower price/sales ratios. Hubspot (NYSE:HUBS) is at 12, for example. Meanwhile, both Zendesk (NYSE:ZEN) and New Relic (NYSE:NEWR) sell for 13x sales. TEAM stock, at more than 20x, is a clear outlier. In Atlassian's case, they put in what seemed like a great quarter. They beat on revenues, earnings, and raised guidance going forward. It was a pretty substantial boost to guidance, as well, with Atlassian guiding to ~$125 million in revenues above and beyond the street consensus for full-year 2019. Perhaps most impressively, their revenue growth rate actually went up despite growing off a much larger revenue base. Still, it wasn't enough to keep Atlassian's stock going up past the opening bell. ### Running Ahead Of The Sector If tech stocks as a group were soaring to new heights, TEAM stock would certainly be going up as well. But that's not the case. In fact, the tech-heavy Nasdaq 100 index, as measured by the Invesco QQQ ETF (NASDAQ:QQQ) sits 13% off its recent highs. The FAANG stocks remain under considerable pressure with Netflix (NASDAQ:NFLX) missing on earnings and Facebook (NASDAQ:FB) getting hit with another government investigation. More particularly to TEAM stock, many of its software-as-a-service "SAAS" peers tumbled during the 2018 correction. It will take awhile for investors to warm back up to tech and SAAS stocks. As such, it will be hard for TEAM stock to keep moving to new all-time highs until sector enthusiasm returns. It's a credit to Atlassian that it is putting up better earnings than its peers. But upside will be limited until the sector gets hot again. ### Long-Term Growth Story Remains Great Looking past the short-term noise, however, all signs are still pointing upward for Atlassian. Let's start with a key metric -- the customer base. It grew by more than 7,000 net new customers for the quarter, taking Atlassian's client count to more than 138,000. This growth rate picked up from the previous quarter. Zooming out, at this time last year, Atlassian had just 113,000 customers. Two years ago, it had only 69,000 customers. With that sort of overall growth in the customer base, it's no surprise that Atlassian is putting up huge revenue numbers. For the quarter, Atlassian grew revenues 39% year over year. This was a smashing beat against the Street's estimate of just 34% growth. One particularly exciting note for Atlassian is that its Atlassian Marketplace continues to be a great success. The Marketplace allows vendors to sell apps with Atlassian taking a cut of the profits. As Atlassian attracts more customers, the value of its ecosystem expands, allowing it to collect more of these revenues. For the quarter, the Atlassian Marketplace showed 58% revenue growth, offering a highly attractive, burgeoning revenue stream for investors. Finally, it's worth noting that even when Atlassian seemingly makes a rare misstep, it can make lemonade out of lemons. A recent example is with its Stride collaboration IM product. After significant investment, it abandoned the project. However, it was able to sell it, along with Hipchat, to the trendy Slack, which is a leader in cloud-based communication and collaboration products. Atlassian scored an equity stake in Slack, which could end up being quite valuable at some point, along with a product alliance to promote each others' offerings. ### TEAM Stock Verdict Atlassian stock represents a classic dilemma. This is a great business -- a fantastic business, in fact. But the price is totally wrong. Despite an excellent earnings report that topped expectations on nearly all fronts, TEAM stock still went down. If you pay too high a price for a stock, it is hard to make short-term profits. That said, buyers of TEAM stock that are willing to hold for a few years will almost certainly do well. As long as its revenue growth continues like it has been, the sky is the limit for the company. Newer offerings such as the Atlassian Marketplace should keep the company's growth rate in the stratosphere for years to come. * 10 High-Growth Stocks for the Return of the Bull TEAM stock is still really expensive at $90/share. Don't expect any miracles in 2019 as far as the share price goes. But TEAM stock is worth watching, particularly if it dips more. Selling a cash-covered put option would be another way to get a better entry price on TEAM stock. At the time of this writing, Ian Bezek owned FB stock. You can reach him on Twitter at @irbezek. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Apple Should Consider Buying * 7 Beaten-Up Housing Stocks Due for a Bounce Back * Take Buffett's Advice: 5 Vanguard Funds to Buy Compare Brokers The post Itas Not Too Late to Join the Atlassian Team appeared first on InvestorPlace.
Team collaboration and productivity software provider Atlassian Corporation PLC (NASDAQ: TEAM ) reported forecast-beating Q2 results last week. Here are how a few analysts reacted to the print. JMP: Atlassian ...
Atlassian Corporation PLC (TEAM) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
Netflix and Atlassian report earnings, and Microsoft recommends Windows 10 Mobile device users to switch to Android or iOS.
were popping Friday after the $22 billion enterprise software company beat expectations on both its top and bottom lines. "The quarter also highlighted the growing demand for Atlassian products to drive digital transformation in businesses large and small," said Co-CEO and co-founder Scott Farquhar. Subscription revenue exploded 56% year over year for the quarter, far outpacing the growth of other revenue segments.
Slack Changed ‘Simply Awful’ Logo: Is an IPO Coming Soon?Slack If you work in an office environment, then you’re probably using Slack—or at least you must have heard about it. Slack Technologies, a provider of cloud-based apps and services,
The stock market was modestly higher in morning trade Friday. Netflix stock fell 4% after disappointing earnings guidance.
STOCKSTOWATCHTODAY BLOG Hope Again. Stocks were climbing in premarket trading, as investors cheered a potential step closer to ending the trade war. The White House may be considering pulling back tariffs to incentivize China to make its own concessions and calm markets.