16 Software Stocks for Investors Exploring Value Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 29 2025
0mins
Should l Buy TEAM?
Source: MarketWatch
Black Friday Opportunities: Analysts at Baird suggest that Black Friday weekend presents a chance to find undervalued software stocks, in addition to traditional retail discounts.
Software Sector Performance: Despite a 16.5% rise in the S&P 500 in 2025, the iShares Expanded Tech Software ETF has only increased by about 4%, indicating challenges in the software sector.
Concerns Impacting Software Stocks: The limited growth in software stocks is attributed to worries about artificial intelligence disruption and uncertainty regarding interest rates.
Preference for Semiconductors: Investors are currently favoring semiconductor stocks, which are perceived as more direct beneficiaries of AI spending compared to software companies.
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Analyst Views on TEAM
Wall Street analysts forecast TEAM stock price to rise
23 Analyst Rating
19 Buy
4 Hold
0 Sell
Strong Buy
Current: 86.480
Low
185.00
Averages
235.57
High
320.00
Current: 86.480
Low
185.00
Averages
235.57
High
320.00
About TEAM
Atlassian Corporation is a provider of team collaboration and productivity software. The Company specializes in software development, work management, and enterprise service management software, which enables enterprises to connect their business and technology teams with an artificial intelligence (AI)-powered system of work. Its interconnected portfolio of apps, AI agents, and Collections, each with discrete value propositions, delivers solutions for software teams, IT operations and support teams, leadership, and business teams. Its apps, agents, and Collections are all built on the Atlassian Cloud Platform and data model: a common technology foundation that connects teams, information, and workflows throughout an organization. Its apps include Jira, Confluence, Loom, Jira Service Management, Rovo, Bitbucket, Compass, Jira Product Discovery, Jira Align, Focus and Talent. It offers team collaboration products on its Data Center deployment option. It operates the Dia and Arc browsers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Anthropic Leads AI Revolution, Software Industry Faces Challenges
- AI Disrupts Traditional Software: The rise of Anthropic poses significant challenges to traditional software companies like Workday and Salesforce, particularly in the application of AI technology, threatening their market share and customer loyalty.
- Surge in Capital Expenditures: Tech giants like Amazon and Google have significantly raised their capital expenditure outlooks, with Amazon projecting spending to reach $200 billion, far exceeding the $147 billion consensus, which could impact stock performance and investor confidence.
- Intensified Market Competition: The rapid advancement of AI technology raises questions about the value of enterprise software, leading investors to adopt a pessimistic view on the future of traditional software companies, especially in labor-intensive areas that may face workforce reductions due to AI adoption.
- Investor Confidence Shaken: Despite significant advancements by companies like Anthropic and OpenAI in the AI space, market confidence in traditional software companies is waning, resulting in poor stock performance over the past six months and raising concerns about future profitability.
See More
Anthropic's New Tools Cause Market Turmoil
- Market Reaction: Following the launch of Anthropic's Claude Cowork and its industry-specific plugins, the market experienced panic, with stocks of Salesforce, Intuit, and Atlassian dropping by 27.9%, 33%, and 41.6% respectively, reflecting investor fears that AI tools could replace traditional SaaS platforms.
- Alphabet's Stock Decline: Alphabet's shares fell over 6% in the week after the Claude Cowork announcement, raising concerns among investors about its competitive position in AI, despite not directly offering industry-specific software, which affected market confidence.
- Competitive Pressure from Gemini 3: Google's Gemini 3 LLM update launched in November significantly enhanced its AI capabilities, attracting a surge of paid subscribers, leading investors to worry that Claude Cowork might further poach these users, increasing market uncertainty.
- Investor Buying Opportunity: Despite market volatility, renowned investors like Warren Buffett and Cathie Wood actively increased their stakes in Alphabet during the stock's decline, investing $21.6 million and $15 million respectively, indicating confidence in Alphabet's long-term value and potentially providing a buying opportunity for other investors.
See More
Alphabet Shares Decline Due to Claude Cowork Launch
- Stock Price Decline: Alphabet's shares fell over 6% following the launch of Claude Cowork, which, while not directly impacting Google's core business, raised concerns about competition with Google's Gemini 3 AI tool, leading to negative investor sentiment.
- Investor Activity: Notable investor Cathie Wood took advantage of the dip by purchasing $21.6 million in Alphabet shares through her Ark Invest funds on February 5, indicating confidence in the company's future potential despite current market challenges.
- Industry Impact: The rollout of Claude Cowork negatively affected several business software companies, with Salesforce, Intuit, and Atlassian experiencing stock declines of 27.9%, 33%, and 41.6%, respectively, reflecting market fears that AI tools could replace traditional SaaS platforms.
- Competitive Pressure: Despite Google's advancements with Gemini 3 in the AI space, investors remain concerned that Claude Cowork could lure away paid subscribers from Gemini, potentially undermining Google's competitive position in the AI market.
See More
Opportunity Amid Software Stock Sell-Off
- Market Overreaction: The iShares Expanded Tech-Software ETF has dropped 30% since late October due to fears of AI competition, yet high switching costs may prevent businesses from easily changing software providers, suggesting future earnings could be more predictable than the market anticipates.
- Microsoft's Growth Potential: Microsoft 365 Commercial sales rose 14% year-over-year, with consumer sales up 27% and Dynamics 365 sales increasing by 17%, showcasing strong software performance under AI integration, while its forward P/E ratio stands at just 24, indicating a low valuation.
- Atlassian's Cloud Transition: Atlassian is pushing customers to its cloud-based platform, achieving a 120% net revenue retention rate for cloud customers in fiscal 2025, with momentum expected to continue into 2026; despite a forward P/E of 21, management forecasts an 18% revenue growth.
- Adobe's AI Integration: AI-influenced products accounted for one-third of Adobe's annual recurring revenue, and despite fears of AI displacing its software, its recurring revenue continues to grow at a double-digit pace, with the stock currently trading at less than 12 times forward earnings, highlighting its attractiveness.
See More
Investment Opportunities Amid Software Stock Slump
- Market Panic and Investment Opportunity: Despite a 30% sell-off in software stocks due to fears of AI disruption, the panic in the market may present an excellent buying opportunity for patient long-term investors, especially since many software companies have high switching costs.
- Microsoft's Growth Potential: Microsoft 365 Commercial sales grew 14% year-over-year, with consumer sales soaring 27%, indicating strong growth potential in its core software business under AI integration, while its forward P/E has dropped to 24, highlighting the attractiveness of its current valuation.
- Atlassian's Cloud Transition: Atlassian is pushing customers to its cloud-based work platform, achieving a net revenue retention rate of 120%, and is expected to continue this growth into 2026, with a current P/E of 21 reflecting its future profitability and market competitiveness.
- Adobe's AI Integration: Adobe's annual recurring revenue is growing at a double-digit pace driven by AI products, and despite market fears of its software being displaced by AI, its current forward P/E is below 12, indicating the investment value of its stock.
See More
Atlassian Stock Plummets Despite Record Revenue Growth
- Stock Decline: Atlassian's stock has plummeted 39% in 2026 and is down 80% from its 2021 peak, reflecting investor panic over AI potentially rendering enterprise software tools obsolete, despite the company achieving record revenue.
- Accelerating Revenue Growth: In Q2 of fiscal 2026, Atlassian generated $1.6 billion in total revenue, a 23% year-over-year increase, marking the fastest quarterly growth rate in nearly two years, showcasing strong performance driven by its AI platform.
- Significant User Growth: Atlassian's AI platform Rovo has surpassed 5 million monthly active users within less than two years of launch, indicating rapid customer adoption of new technology and further solidifying the company's market position.
- Market Opportunities Remain: Despite AI competition, Atlassian's addressable market is estimated at $67 billion with an annual growth rate of approximately 13%, and management believes that AI technology will add value to its business rather than pose a threat.
See More
Anthropic Leads AI Revolution, Software Industry Faces Challenges
- AI Disrupts Traditional Software: The rise of Anthropic poses significant challenges to traditional software companies like Workday and Salesforce, particularly in the application of AI technology, threatening their market share and customer loyalty.
- Surge in Capital Expenditures: Tech giants like Amazon and Google have significantly raised their capital expenditure outlooks, with Amazon projecting spending to reach $200 billion, far exceeding the $147 billion consensus, which could impact stock performance and investor confidence.
- Intensified Market Competition: The rapid advancement of AI technology raises questions about the value of enterprise software, leading investors to adopt a pessimistic view on the future of traditional software companies, especially in labor-intensive areas that may face workforce reductions due to AI adoption.
- Investor Confidence Shaken: Despite significant advancements by companies like Anthropic and OpenAI in the AI space, market confidence in traditional software companies is waning, resulting in poor stock performance over the past six months and raising concerns about future profitability.
See More
Anthropic's New Tools Cause Market Turmoil
- Market Reaction: Following the launch of Anthropic's Claude Cowork and its industry-specific plugins, the market experienced panic, with stocks of Salesforce, Intuit, and Atlassian dropping by 27.9%, 33%, and 41.6% respectively, reflecting investor fears that AI tools could replace traditional SaaS platforms.
- Alphabet's Stock Decline: Alphabet's shares fell over 6% in the week after the Claude Cowork announcement, raising concerns among investors about its competitive position in AI, despite not directly offering industry-specific software, which affected market confidence.
- Competitive Pressure from Gemini 3: Google's Gemini 3 LLM update launched in November significantly enhanced its AI capabilities, attracting a surge of paid subscribers, leading investors to worry that Claude Cowork might further poach these users, increasing market uncertainty.
- Investor Buying Opportunity: Despite market volatility, renowned investors like Warren Buffett and Cathie Wood actively increased their stakes in Alphabet during the stock's decline, investing $21.6 million and $15 million respectively, indicating confidence in Alphabet's long-term value and potentially providing a buying opportunity for other investors.
See More
Alphabet Shares Decline Due to Claude Cowork Launch
- Stock Price Decline: Alphabet's shares fell over 6% following the launch of Claude Cowork, which, while not directly impacting Google's core business, raised concerns about competition with Google's Gemini 3 AI tool, leading to negative investor sentiment.
- Investor Activity: Notable investor Cathie Wood took advantage of the dip by purchasing $21.6 million in Alphabet shares through her Ark Invest funds on February 5, indicating confidence in the company's future potential despite current market challenges.
- Industry Impact: The rollout of Claude Cowork negatively affected several business software companies, with Salesforce, Intuit, and Atlassian experiencing stock declines of 27.9%, 33%, and 41.6%, respectively, reflecting market fears that AI tools could replace traditional SaaS platforms.
- Competitive Pressure: Despite Google's advancements with Gemini 3 in the AI space, investors remain concerned that Claude Cowork could lure away paid subscribers from Gemini, potentially undermining Google's competitive position in the AI market.
See More
Opportunity Amid Software Stock Sell-Off
- Market Overreaction: The iShares Expanded Tech-Software ETF has dropped 30% since late October due to fears of AI competition, yet high switching costs may prevent businesses from easily changing software providers, suggesting future earnings could be more predictable than the market anticipates.
- Microsoft's Growth Potential: Microsoft 365 Commercial sales rose 14% year-over-year, with consumer sales up 27% and Dynamics 365 sales increasing by 17%, showcasing strong software performance under AI integration, while its forward P/E ratio stands at just 24, indicating a low valuation.
- Atlassian's Cloud Transition: Atlassian is pushing customers to its cloud-based platform, achieving a 120% net revenue retention rate for cloud customers in fiscal 2025, with momentum expected to continue into 2026; despite a forward P/E of 21, management forecasts an 18% revenue growth.
- Adobe's AI Integration: AI-influenced products accounted for one-third of Adobe's annual recurring revenue, and despite fears of AI displacing its software, its recurring revenue continues to grow at a double-digit pace, with the stock currently trading at less than 12 times forward earnings, highlighting its attractiveness.
See More
Investment Opportunities Amid Software Stock Slump
- Market Panic and Investment Opportunity: Despite a 30% sell-off in software stocks due to fears of AI disruption, the panic in the market may present an excellent buying opportunity for patient long-term investors, especially since many software companies have high switching costs.
- Microsoft's Growth Potential: Microsoft 365 Commercial sales grew 14% year-over-year, with consumer sales soaring 27%, indicating strong growth potential in its core software business under AI integration, while its forward P/E has dropped to 24, highlighting the attractiveness of its current valuation.
- Atlassian's Cloud Transition: Atlassian is pushing customers to its cloud-based work platform, achieving a net revenue retention rate of 120%, and is expected to continue this growth into 2026, with a current P/E of 21 reflecting its future profitability and market competitiveness.
- Adobe's AI Integration: Adobe's annual recurring revenue is growing at a double-digit pace driven by AI products, and despite market fears of its software being displaced by AI, its current forward P/E is below 12, indicating the investment value of its stock.
See More
Atlassian Stock Plummets Despite Record Revenue Growth
- Stock Decline: Atlassian's stock has plummeted 39% in 2026 and is down 80% from its 2021 peak, reflecting investor panic over AI potentially rendering enterprise software tools obsolete, despite the company achieving record revenue.
- Accelerating Revenue Growth: In Q2 of fiscal 2026, Atlassian generated $1.6 billion in total revenue, a 23% year-over-year increase, marking the fastest quarterly growth rate in nearly two years, showcasing strong performance driven by its AI platform.
- Significant User Growth: Atlassian's AI platform Rovo has surpassed 5 million monthly active users within less than two years of launch, indicating rapid customer adoption of new technology and further solidifying the company's market position.
- Market Opportunities Remain: Despite AI competition, Atlassian's addressable market is estimated at $67 billion with an annual growth rate of approximately 13%, and management believes that AI technology will add value to its business rather than pose a threat.
See More
