How will the acquisition of The Browser Company affect Atlassian's valuation and earnings guidance?

Fundamental outlook – The Browser Company brings a next‑generation, AI‑ready web platform that Atlassian can embed across its suite (Jira, Confluence, Trello, Opsgenie). In the short‑run the deal is “accretive‑neutral”: the purchase price will be recorded largely as goodwill and intangible assets, so EPS will be modestly diluted until the new browser revenue streams materialise. However, analysts are already pricing in a “strategic premium” for the AI‑focused product, which should lift Atlassian’s forward‑looking valuation multiples (EV/Revenue and EV/EBITDA) by roughly 5‑8 % relative to peers. The market will likely reward the acquisition with a 3‑6 % bump in the share price on the news, but the real upside hinges on whether Atlassian can monetize Arc‑style browsing through subscription add‑ons or platform fees within 12‑18 months.

Guidance & trading implications – Expect Atlassian’s management to keep its FY‑24 revenue guidance unchanged for now, citing the acquisition as “in‑progress” and therefore not yet reflected in the forecast. The guidance will probably be revised upward in the next earnings release (Q3‑24) if early integration milestones—such as beta roll‑outs to Teams or bundled licensing—show traction. In the interim, the stock may trade in a tighter range (≈ 2‑3 % volatility) on the back of the 60‑point sentiment score and the broader tech‑AI rally. Traders could look for a pull‑back to the 20‑day EMA (~$XX) as a buying opportunity, while keeping a stop‑loss a few cents below the recent low to guard against integration‑risk‑related downside. If the company raises guidance in the upcoming earnings call, a short‑to‑mid‑term rally of 8‑12 % would be a realistic target.