Why Figma’s Stock Is Red-Hot: The Design Software Giant Drawing Investor Frenzy
:max_bytes(150000):strip_icc()/GettyImages-2227189742-899c3cf157af404cb836b732e34c0169.jpg)
Figma's shares are mooning—while legacy design tools get left in the dust. What’s fueling the rally?
The collaboration edge
Real-time multiplayer workflows cut friction for remote teams. Adobe’s still playing catch-up.
Freemium flywheel
Free tiers hook users, while enterprises pay up. Classic SaaS magic—just ask Salesforce or Zoom.
Wall Street’s new darling
Analysts gush about ‘paradigm shifts’ when the real paradigm is institutional FOMO. (Bonus jab: Your portfolio manager probably bought the top.)
One thing’s clear—in the design wars, Figma’s holding the Wacom pen.
Figma Eyes AI With Its 'Most Innovative Days' Ahead
In the less than 10 years since Figma launched its software publicly in 2016, it’s become a mainstay of the design world, particularly for its strengths in real-time collaboration, interactive features, and AI integrations. An estimated 95% of Fortune 500 companies use it, with its clients including many tech heavyweights like Amazon (AMZN), Google parent Alphabet (GOOGL), Oracle (ORCL), and Netflix (NFLX).
Figma reported first-quarter net income of $44.9 million on revenue that jumped 46% year-over-year to $228.2 million, according to a regulatory filing. CEO Dylan Field, a budding billionaire thanks to this week's gains, said he expects further growth, with big plans in AI.
Figma’s revenue surged 48% last year to $749 million. Adobe’s climbed 11% to $21.51 billion.
"Figma’s most innovative days are ahead," he said in a blog post yesterday. "We’re already investing heavily in AI and we plan to double down even more in this area. AI spend will potentially be a drag on our efficiency for several years, but AI is also Core to how design workflows will evolve going forward."
Some high-profile investors are among those buying into Field's vision. Cathie Wood’s Ark Invest, which focuses on companies it perceives as innovators and disruptors, was among those that piled into the stock yesterday, snapping up about 60,000 shares.
