Is Figma the Next Hot Tech Stock to Own?

Figma (FIG 5.62%) went public last month, sparking immediate investor interest. The design and website creation software company, known for its collaborative tools, saw its stock surge to nearly $143 on August 1 after debuting at $85. However, the rally proved short-lived as valuation concerns triggered a slide.

Adobe's failed $20 billion acquisition attempt in 2022 underscored Figma's strategic value. Now trading independently, the company faces scrutiny over its pricing strategy. At $16 monthly for its full suite—compared to Adobe's $23 Photoshop plan or $70 Creative Cloud package—Figma positions itself as an affordable alternative for users who don't require advanced features.

The market appears divided. Bulls see growth potential in Figma's competitive pricing and collaborative focus. Bears question whether the recent pullback reflects cooling enthusiasm or fundamental valuation issues. With no direct cryptocurrency exposure, Figma's trajectory remains a pure tech equity play amid volatile market conditions.