What Happened?

A number of stocks fell in the afternoon session after Anthropic announced that its Claude AI assistant can now control computers to complete tasks by imitating human keystrokes and mouse movements. 

Investors reacted to the possibility that enterprise value would migrate from the application layer to the intelligence layer, leaving legacy software providers vulnerable to displacement by autonomous agents that can operate across platforms. Analysts added that the "agentic era" could lead to massive margin compression as software companies lose their pricing power.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Project Management Software company Atlassian (NASDAQ: TEAM) fell 7.8%. Is now the time to buy Atlassian? Access our full analysis report here, it’s free.
• Video Conferencing company Five9 (NASDAQ: FIVN) fell 5.4%. Is now the time to buy Five9? Access our full analysis report here, it’s free.
• HR Software company Paylocity (NASDAQ: PCTY) fell 5.6%. Is now the time to buy Paylocity? Access our full analysis report here, it’s free.
• HR Software company Paycom (NYSE: PAYC) fell 6.3%. Is now the time to buy Paycom? Access our full analysis report here, it’s free.
• Advertising Software company AppLovin (NASDAQ: APP) fell 5.1%. Is now the time to buy AppLovin? Access our full analysis report here, it’s free.

Zooming In On Atlassian (TEAM)

Atlassian’s shares are extremely volatile and have had 31 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 19 days ago when the stock gained 8.9% on the news that investors looked past recent fears of AI-driven disruption, focusing instead on strong company fundamentals and attractive valuations. The tech sector recently experienced a downturn after the release of a new AI tool sparked concerns about potential industry disruption. However, strong fourth-quarter earnings reports have helped to ease those worries, with some analysts now viewing the fears as overblown. According to analysts, "The disconnect between near-term fundamentals and long-term fear is enormous." This shift in sentiment is bolstered by the fact that the recent sell-off has made valuations in the software space more attractive for investors, especially for companies still showing double-digit growth. Some hedge funds that previously shorted software stocks began to cover their positions, interpreting the peak negativity as a sign of capitulation and a potential turning point for the sector.

Atlassian is down 55.9% since the beginning of the year, and at $68.31 per share, it is trading 71.1% below its 52-week high of $236.22 from March 2025. Investors who bought $1,000 worth of Atlassian’s shares 5 years ago would now be looking at only $324.59.

ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.

Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.