AI Fears are Pulverising Software Stocks Despite Record Growth
Australian Financial Review
ENRICHED
Details
- Date Published
- 8 Feb 2026
- Priority Score
- 2
- Australian
- No
- Created
- 8 Feb 2026, 03:15 am
Description
Revenues are going up, momentum is strong and yet investors are turning bearish when it comes to big tech. And stock-based compensation is in the firing line.
Summary
The article examines the paradox wherein software companies such as Atlassian, despite reporting strong financial growth and guidance, are experiencing significant drops in stock price due to investor fear surrounding AI and its implications. This reaction comes amidst a broader sell-off in tech stocks, suggesting market concerns about long-term impacts of AI advancements on the sector's stability. The article touches on governance issues, particularly in stock-based compensation, indicating a tension between financial performance and market perception. While not directly addressing catastrophic AI risks, it highlights growing economic uncertainties tied to AI's influence, relevant for those studying AI's impact on global financial markets.
Body
MarketsEquity MarketsWorld marketsPrint articleFeb 8, 2026 – 9.00amMizuho’s veteran technology analyst Gregg Moskowitz summed up the state of utter bewilderment during Atlassian’s earnings call on Friday morning.The Nasdaq-listed software firm’s shares had plunged 40 per cent this year. But the company was reporting what he described as a “strong quarter” with “great guidance” and announced an acceleration of its buyback program.Loading...Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.comSaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreWorld marketsOpinionInvestingSharemarketAtlassianGovernanceSoftwareCanvaFetching latest articles