Why Atlassian (TEAM) Stock Is Plunging Today? - Atlassian (NASDAQ:TEAM)

Atlassian Corp TEAM reported first-quarter revenue growth of 31% year-on-year to $807.4 million, beating the consensus of $806.4 million. Subscription revenue rose 50% Y/Y to $651 million.
Non-GAAP operating margin was 18%.
EPS of $0.36 missed the consensus of $0.38.
Scott Farquhar, Atlassian's co-founder and co-CEO, said, "Despite the turbulent macroeconomic environment we find ourselves in, we have conviction about the incredible long-term opportunities in front of us and our ability to capitalize on them."
"We have the right products, the right leaders, and the right strategies in place to come out of this downturn in a much stronger market position."
Atlassian sees Q2 revenue of $835 million - $855 million, below the consensus of $879.2 million.
It sees a non-GAAP operating margin of 13%.
Piper Sandler analyst James Fish downgraded Atlassian from Overweight to Neutral.
Mizuho analyst Gregg Moskowitz maintained a Buy and cut the price target from $320 to $255.
Goldman Sachs analyst Kash Rangan maintained a Buy and cut the price target from $300 to $265.
Macquarie analyst Frederick Havemeyer downgraded from Outperform to Neutral and lowered the price target from $287 to $147.
BMO Capital analyst Keith Bachman maintained a Market Perform and lowered the price target from $295 to $160.
Price Action: TEAM shares traded lower by 28.4% at $124.80 on the last check Friday.

Atlassian Gave Cautious Q2 Outlook Amid Uncertain Macro Environment, Analysts Cut Price Targets