Shares of Figma (Nasdaq: FIG) continued to fall last month amid fears of AI disrupting software. SaaS leaders like Microsoft, ServiceNow, and SAP also saw sharp declines after reporting earnings. Figma’s stock fell 31% in January, accelerating as the month progressed.

Analysts maintained a bullish stance on Figma, upgrading it to overweight. The sell-off was also influenced by earnings reports from Microsoft, ServiceNow, and SAP. Figma’s rival Adobe also dropped 16% last month, reflecting sector pressure rather than company-specific issues.

Figma still trades at 12 times sales, down significantly from its IPO price. The company remains profitable and in-demand, making it look oversold. Disrupting Figma will take time, with fourth-quarter earnings expected on Feb. 18. Analysts anticipate revenue of $293.2 million and adjusted EPS of $0.06.

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Read more at NASDAQ.: Why Figma Stock Lost 31% in January