Figma (FIG) Stock Plummets 55% After IPO

Figma (FIG) stock has plummeted more than 55% from its post-IPO high due to a lack of investor enthusiasm despite solid earnings. Valuation concerns persist as the software company’s stock remains overpriced. Quarterly results showed a 41% revenue increase, but a slowing growth outlook has dampened stock performance.

Investors may be cautious about Figma’s high valuation of 185 times earnings estimates and a price-to-sales ratio of over 25. Concerns about the potential overtake of design software by AI add to uncertainties. Those interested in Figma may want to wait for a more reasonable valuation before investing.