Figma (FIG) Stock Plummets 52% After IPO Surge, Raising Growth Concerns

Figma's stock trajectory since its July IPO reads like a cautionary tale for growth investors. The collaborative design platform's shares initially skyrocketed 250% on their debut, only to collapse 52-59% in the subsequent two months as reality set in.

Second-quarter earnings revealed slowing momentum, with revenue growth decelerating to 41% year-over-year from Q1's 46%. Management's guidance of 33% Q3 growth and 30% for Q4 suggests the slowdown is structural rather than temporary.

With a price-to-sales ratio of 32x—more than triple the tech sector average—and penetration of 78% of Forbes 2000 companies, Figma faces existential questions about its growth runway. Analysts remain divided, with only 4 of 11 maintaining buy ratings despite a median price target implying 17% upside.