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Atlassian Founders Face AI Stock Market Carnage
19 Feb
Summary
- Australian tech billionaires lost $7.2 billion this year.
- Atlassian shares plummeted 48% by February 18.
- AI is seen as a threat to software stocks like Atlassian.
Michael Cannon-Brookes and Scott Farquhar, the co-founders of software firm Atlassian Corp., have experienced a substantial loss of wealth this year. The pair have collectively seen their net worth decrease by about $7.2 billion, representing a third of their fortunes, due to a global stock market downturn impacting companies perceived as threatened by artificial intelligence.
This downturn marks a significant reversal for the Australian tech entrepreneurs. Atlassian's shares have suffered a 48% decline through February 18, making them the worst performers on the Nasdaq 100 this year. Their recent losses have led to both executives falling out of the Bloomberg Billionaires Index, a list of the world's 500 wealthiest individuals.
Despite the market turmoil, Michael Cannon-Brookes expressed optimism about AI's impact on Atlassian, stating in a recent interview that it is "one of the best things that's ever happened" to the company. He confirmed that Atlassian continues to invest heavily in AI research and development.
Previously, both executives had amassed significantly larger fortunes, each reaching $27.7 billion in October 2021. The co-founders, who established Atlassian in 2002, saw the company’s initial public offering in 2015 value it at over $4 billion.
