Six months ago everyone was calling the death of saas due to AI. TEAM was one on the hit list as the market said its seat-based collaboration software could be replaced by AI agents. It hit a low of $56, cut 10% of staff in March, still −36% YTD on 6 August.
Then announced FY26 results with revenue +26%, Q4 cloud accelerating to +31%, RPO +44%, FCF $1.32B. Stock +30% the next day. Last close at $195.
The short was wrong because AI agents need context, and context lives in the system of record. You can't prompt your way to knowing who owns the deploy or what broke last incident, that's in Jira. Atlassian's MCP server hit 1M monthly active users, doubling in a quarter. That's not Atlassian selling AI. That’s everyone’s agents showing up at Atlassian’s data - i.e. the context. Context is king 👑
Another name that I think is in a similar situation that hasn't moved yet is MNDY at \~$87, −50% YTD, 2.1x EV/sales with $835M net cash - 23% of the market cap. Q2 revenue +22%, ARR through $1.5B, AI ARR now 17% of net new. Cheapest thing in the category on any measure I can find, and fits the same idea as why TEAM has done well, i.e. AI is a benefit.
No position yet. Posting for discussion.