Figma (FIG) reported strong second-quarter earnings, exceeding future revenue expectations. Despite this, shares closed 20% lower on Sept. 4. The company projects revenue slightly above $1.02 billion for the year. Several factors have led to investor skepticism, including a decline in the net dollar retention rate. Figma’s recent $91 billion Bitcoin investment adds risk. Employee share unlocks and a high forward P/E ratio of 221x raise concerns. Analysts advise caution, with price targets as low as $48, indicating potential downside. Investors may want to wait for a better entry point into Figma stock.

Read more at Yahoo Finance: Should You Buy the Post-Earnings Plunge in Figma Stock?