"Figma's stock traded as high as $142.92 in the past 52 weeks, but now sits below $20 per share for an 86.5% drop. Even so, growth remains robust."
"Figma's fourth-quarter and full-year 2025 results showed full-year revenue of $1.06 billion, up 41% year-over-year. Fourth-quarter revenue alone reached $303.8 million, also up 40%."
"Figma guided first-quarter 2026 revenue to $315 million to $317 million (38% growth at the midpoint) and full-year 2026 to $1.366 billion to $1.374 billion (30% growth)."
The arrival of AI tools has triggered a decline in software-as-a-service stocks, with the iShares Expanded Tech-Software Sector ETF falling 35%. Figma, Duolingo, and Monday.com have seen significant drops from their 52-week highs, with Figma down 86.5%. Despite Figma's robust growth, with a 41% revenue increase, it remains unprofitable. Investors are concerned that AI may undermine Figma's competitive advantage. Duolingo and Monday.com also face similar challenges, reflecting a broader trend in the SaaS market amid AI advancements.
Read at 24/7 Wall St.
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