Jan. 26 at 8:55 PM
Figma’s post-IPO performance has become a cautionary tale about hype and AI-driven fears. Shares surged more than 250% on their first trading day last summer, briefly valuing the company near
$60 billion, but have since fallen about 80% from their peak and now trade below the
$33 IPO price, with a market cap around
$14.5 billion.
Beyond IPO hype, investor concerns center on artificial intelligence and the rise of “vibe coding,” where AI tools generate software via prompts. Despite partnerships with OpenAI and Google and its own AI product, Figma Make, analysts worry about intensifying competition from AI-native platforms and expanding capabilities from major AI players.
Valuation remains a key issue. Even after the selloff, Figma trades at over 110x forward earnings, fueling skepticism despite solid fundamentals, including 38% revenue growth in the most recent quarter.
$FIG $ADBE $GOOGL