Atlassian Corporation PLC (TEAM) stock plummeted 5.18% during intraday trading on Friday, reflecting significant selling pressure.

The sharp decline appears to be driven by a wave of analyst price target reductions from multiple financial firms. Piper Sandler lowered its target to $200 from $280, Morgan Stanley cut to $290 from $320, BTIG reduced to $140 from $220, Wells Fargo lowered to $155 from $216, Jefferies cut to $150 from $262, and UBS slashed its target to $105 from $145, among others. These downward revisions suggest analysts are taking a more cautious view on the company's near-term prospects.

Notably, this negative sentiment comes despite Atlassian recently reporting strong second-quarter fiscal 2026 results, with revenue and earnings beating analyst estimates. The company also raised its full-year sales outlook, indicating underlying business strength even as analysts adjust their valuation models.