The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

Shares of the workplace automation company Atlassian (NASDAQ: TEAM) were climbing today as tech investors reevaluated the recent sell-off of many software stocks.

While there wasn't any specific company-related news driving Atlassian stock higher, investors may be starting to agree with a recent Morningstar analysis that found that some leading tech stocks are "undervalued."

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

Atlassian stock was up as much as 6.3% this morning and had gained 4.4% as of 11:28 a.m. ET.

Software stocks have, generally, experienced significant declines over the past six months as investors have grown increasingly concerned that artificial intelligence will disrupt traditional software companies. Atlassian shares are down about 54% over this time.

But some of that fear has been misplaced as tech companies have incorporated AI into their existing software. Atlassian has adapted as well, adding artificial intelligence services like its Rovo agent to its apps to improve data access and enable customers to create their own AI agents.

And some tech investors now appear to be regaining their appetite for software stocks, believing that they're now undervalued. That's Morningstar's perspective, which released a list of 12 tech stocks it deemed "undervalued" earlier this month, with Atlassian near the top.

Morningstar's fair value estimate for Atlassian's stock is $220 right now -- representing significant upside from the stock's current price of about $70. And the average analysts' price target for Atlassian shares is about $151, more than double the stock's current price.

Investors appear to have gotten the message today and are rushing in to buy Atlassian shares while they're still a good deal.

Before you buy stock in Atlassian, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Atlassian wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $524,786!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,236,406!*

Now, it’s worth noting Stock Advisor’s total average return is 994% — a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of April 20, 2026.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Atlassian. The Motley Fool has a disclosure policy.

Why Atlassian Stock Rallied Today was originally published by The Motley Fool