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SaaS-pocalypse: Investors Doubt AI Hype Amid Major Losses

2/20/2026

Summary

Story summary

Investors are questioning the reality of AI hype as a broad SaaS sell-off, dubbed the "SaaS-pocalypse," persists.
In Australia, Xero and WiseTech have lost billions of dollars in value.
In the United States, Atlassian Corp's shares have fallen about 50% since January, costing its Australian founders Mike Cannon-Brookes and Scott Farquhar roughly US$8 billion (AU$11.5 billion).
The market setback raises concerns about the future of software investment.

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Story summary

Investors are questioning the reality of AI hype as a broad SaaS sell-off, dubbed the "SaaS-pocalypse," persists.
In Australia, Xero and WiseTech have lost billions of dollars in value.
In the United States, Atlassian Corp's shares have fallen about 50% since January, costing its Australian founders Mike Cannon-Brookes and Scott Farquhar roughly US$8 billion (AU$11.5 billion).
The market setback raises concerns about the future of software investment.