Chapter 1: What is the main topic discussed in this episode?
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning.
It's good to be with you on this Thursday, March 12th. I'm Julie Morgan. Stock index futures are in the red as oil prices continue to rise. The Dow is down 0.4%, and the S&P 500 and Nasdaq are both down around 0.3%. Brent Crude is up 6% at $98. West Texas Intermediate is up 6% as well at $92 a barrel. We'll take a look at one of the biggest movers in pre-market action in just a few minutes.
Atlassian announced that it is reducing its global headcount by about 10% or 1,600 roles. The company will reallocate capital toward artificial intelligence and enterprise sales. Atlassian is up 2.3% in pre-market action. The CEO said in a blog post that for Atlassian, AI is not replacing employees.
but it would be disingenuous to pretend AI does not change the mix of skills that they need or the number of roles required in certain areas. He wrote that this is primarily about adaptation. He said they're reshaping their skill mix and changing how they work to build for the future. Atlassian expects to incur costs between $225 and $236 million due to these changes.
This includes around $169 million, to $174 million for severance and employee benefits and approximately $56 million to $62 million for costs related to reducing office space. The company plans to exclude these costs from its non-GAAP financial measures.
Most of these expenses are anticipated to occur in the third quarter of fiscal year 2026, with significant completion expected by the end of the fourth quarter, depending on local laws. Rivian Automotive will debut the R2 today at South by Southwest in Austin, Texas, with pricing expected to place the vehicle competitively with Tesla's Model Y, the Hyundai Ioniq 5, and the Ford Mustang Mach-E.
TD Cowan upgraded Rivian to buy from hold amid expectations for favorable demand projections for the company's R2 mid-sized SUV. One analyst raised his price target for Rivian by 18% to $20. Rivian closed Wednesday at $16.65. Now for a look at a few other articles that are trending. The U.S. targets China, Mexico, EU, and India in a massive 16-nation trade probe to rebuild the Trump tariffs.
An Intel shareholder is reportedly suing over the 10% stake deal with the U.S. government. And we have a list of the 10 most oversold S&P 500 stocks as markets digest the U.S.-Iran war. Now let's check out our Catalyst Watch.
Lucid Group will host an Investor Day event that will include a comprehensive update on the company's strategic priorities, operational execution, long-term growth roadmap, and financial outlook.
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Chapter 2: What recent changes has Atlassian announced regarding its workforce?
At 8.30 a.m., housing starts and permits. Also at 8.30 a.m., jobless claims.
That's it for today's Wall Street Breakfast. Thanks for listening. To take full advantage of Seeking Alpha with coverage on significant stocks and ETFs, become a premium subscriber. Check out seekingalpha.com slash subscriptions. I'm your host, Julie Morgan.
Chapter 3: How is Atlassian planning to invest in AI and enterprise sales?
Go out and make it a great day.