Figma’s IPO Surge and Subsequent Pullback: A Case Study in Market Frenzy
Figma's public debut on July 31 became an instant legend in IPO lore. Priced at $33, shares briefly touched $125 on opening day—a 279% spike—before settling at a $60 billion valuation that eclipsed legacy tech giants. The design platform's gravitational pull is undeniable: 78% of Forbes Global 2000 companies use its collaborative tools, fueling 48% revenue growth in 2023.
Adobe's failed $20 billion acquisition attempt in 2022 now appears prescient. Figma's Day 2 peak at $143 proved ephemeral as shares plunged 27.4% on Day 3, though still holding 168% above IPO pricing. This volatility underscores the dopamine-driven IPO effect documented in behavioral finance research—where novelty triggers irrational exuberance before fundamentals reassert control.
