Figma, a popular online design software, recently went public via an IPO, soaring from $33 to over $120 per share on day one. However, the stock has since dropped to around $70 per share, leaving many investors with losses. The company’s revenue is impressive at $821 million, but its high stock price of 35 times sales may deter potential investors. Figma faces challenges in expanding its customer base beyond its current reach of 78% of the Forbes 2000 companies, prompting the need for new products and upselling. The company’s real-time collaboration feature for UI design has been a standout, but it must address concerns to attract more investors. Despite its strong growth, Figma’s expensive valuation of 35 times sales and limited customer base raise questions about its long-term investment potential. The company will need to present a compelling growth case to justify its current price and reassure investors. Figma’s stock price volatility and short-term trading activity make it a stock to watch for stability before considering an investment. The Motley Fool Stock Advisor team did not include Figma in its top 10 stock picks, emphasizing the importance of thorough research before investing in the company.

Read more at Yahoo Finance: Figma Stock Is Tumbling After Its IPO. Should Investors Buy the Dip?