Why Atlassian (TEAM) Stock Is Falling

Atlassian Corp TEAM shares are trading lower by 4% to $191.54 Thursday morning after the company announced it will acquire Loom.

What Else?

Loom, a popular video messaging platform, will be acquired for approximately $975 million. Atlassian says this move responds to the increasing need for remote team collaboration.

Atlassian highlights the integration will offer enhanced asynchronous video communication and seamless transitions between video and other content. The acquisition is meanwhile expected to close in the third quarter of Atlassian's fiscal year 2024.

Why Would This Cause TEAM To Fall?

Investors might be worrying about the price Atlassian is paying for Loom, whether the acquisition aligns with Atlassian's long-term strategy, and how it will impact the company's financials. If investors perceive the acquisition as too expensive or not strategically sound, they may sell their shares, causing the stock price to drop.

Mergers and acquisitions can also often come with integration challenges. If investors fear that Atlassian will struggle to integrate Loom into its existing operations, this could lead to uncertainty and a drop in the stock price.

Integration challenges can result in unexpected costs and disruptions, which can impact a company's financial performance.

According to data from Benzinga Pro, Atlassian has a 52-week high of $215.77 and a 52-week low of $113.86.