Atlassian shares plunge to 2018 levels amid AI fears, cost cuts may boost profits soon

Atlassian's stock has dropped to levels last seen in 2018, trading at just over 2.5 times sales despite strong revenue growth above 20%. Investor concerns about AI disruption and recent acquisitions have pressured the stock. The company is cutting costs and reducing its workforce by 10%, which could improve near-term profitability. However, net cash has decreased to $0.5 billion after acquisitions, raising concerns about capital use and limiting share buybacks. With Q3 results approaching, Atlassian presents a speculative opportunity where risks are priced in but positive news could lead to significant gains.