With big sell-offs today, Figma is being pushed to its lowest prices since its IPO.Figma (FIG -18.49%) stock is sinking rapidly in Thursday's trading. The company's share price was down 17.7% as of 12:30 p.m. ET and had been down as much as 21.9% earlier in trading.After the market closed yesterday, Figma published its first quarterly report as a publicly traded company. While its sales and earnings for the second quarter were slightly better than Wall Street's targets, the company's forward guidance is dri ...

Figma Inc. FIG shares plunged nearly 19% Thursday following the release of its second-quarter results after Wednesday's market close. The company posted revenue of $249.64 million, significantly surpassing the consensus estimate of $228.2 million. This represents a 41% year-over-year increase from $177.20 million in the same quarter last year.Adjusted earnings for the quarter were 8 cents per share, missing the consensus estimate of 18 cents per share, but reflecting an increase over the 7 cents per share r ...

Core Insights - Figma shares dropped nearly 20%, reaching the lowest price since its IPO in July, following the company's first earnings report as a public entity [1] - The second quarter results showed a 41% year-over-year revenue increase to $249.6 million, slightly exceeding analyst expectations of $248.8 million [1] Company Performance - Figma's revenue growth of 41% year-over-year indicates strong demand for its design software [1] - The reported revenue of $249.6 million aligns closely with the preliminary results shared over a month prior, suggesting stability in performance [1] Market Reaction - Analysts at Piper Sandler characterized the earnings report as "largely a non-event," despite the significant volatility in Figma's share price following a 250% surge during its trading debut [2]

Market Overview - US stock indices opened mixed on September 4, with Nasdaq up 0.2%, S&P 500 up 0.13%, and Dow Jones down 0.07% [1] Company News - C3.ai experienced a decline of over 10% due to first-quarter earnings falling short of expectations [1] - Salesforce dropped more than 6% as the company forecasted third-quarter revenue below expectations [1] - Figma saw a significant drop of over 17%, marking its largest decline since August 4, with Bank of America lowering its target price from $85 to $69 [1] - Tesla announced that its Robotaxi application is now open to the public as of September 3 [2] - Amazon completed the acquisition of Indian online financial platform Axio after receiving regulatory approval from the Reserve Bank of India, aiming to expand credit coverage across India [3] - ConocoPhillips confirmed plans to cut up to 25% of its workforce, approximately 3,250 employees, with most layoffs expected to be completed by the end of the year [4] - Faraday Future's founder and Co-CEO Jia Yueting increased his stake in the company by approximately $180,000, as part of a previously signed trading plan [5]

Market Movements - As of the report, U.S. stock index futures showed mixed results with Dow futures down 0.04%, S&P 500 futures up 0.17%, and Nasdaq futures up 0.18% [1] - European indices also experienced gains, with Germany's DAX up 0.81%, UK's FTSE 100 up 0.17%, and the Euro Stoxx 50 up 0.39% [2][3] Oil Prices - WTI crude oil prices fell by 0.92% to $63.38 per barrel, while Brent crude oil prices decreased by 0.93% to $66.97 per barrel [3][4] Economic Concerns - Wall Street is increasingly worried about the independence of the Federal Reserve amid President Trump's attempts to influence it, with a 93% risk of recession indicated by UBS based on hard data from May to July 2025 [5] - UBS described the current economic situation as "stable but high risk," with credit market pressures raising the likelihood of recession to 41% [5] Federal Reserve Insights - Minneapolis Fed President Kashkari warned that tariffs are pushing up commodity inflation, complicating the Fed's goal of achieving a 2% inflation rate [6] - Atlanta Fed President Bostic supports a modest rate cut this year, contingent on future inflation and employment data [6] Gold Price Predictions - Goldman Sachs analysts predict that if the Fed's credibility is damaged, gold prices could soar, with a basic forecast of $4,000 per ounce by mid-2026 and a tail risk scenario suggesting prices could approach $5,000 per ounce [6] Small-Cap Stocks - The rebound in U.S. small-cap stocks has stalled due to concerns over interest rate cuts not being sufficient to support heavily indebted companies [7] - Analysts are focusing on profitable small-cap companies that can thrive in uncertain environments [7] Company News - Tesla announced the public launch of its Robotaxi service, expanding from a limited user base to a broader audience [8] - Apple plans to launch an AI-driven search tool next year to compete with OpenAI, integrating it into Siri and potentially other platforms [8] - Salesforce reported Q2 revenue growth of 9.8% to $10.2 billion, slightly above expectations, but its Q3 revenue outlook is below Wall Street's average forecast [9] - C3.ai's Q1 revenue fell to $70.3 million, down from $87.2 million year-over-year, raising concerns about its financial health [10] - Figma's Q2 revenue growth of 41% to approximately $249.6 million was below analyst expectations, leading to a significant drop in its stock price [10]

Group 1 - Wells Fargo has lowered the target price for cloud collaboration design platform Figma from $82 to $70 [1]

Group 1 - Dow futures decreased by 0.02%, while S&P 500 futures increased by 0.15% and Nasdaq futures rose by 0.21% [1] - Tesla's Shanghai Gigafactory has begun nationwide deliveries of the new Model Y L and the long-range Model 3, with the latter offering a range of 830 kilometers (CLTC) [1] - Tesla's stock rose by 1.37% following the delivery announcement [1] Group 2 - Salesforce reported Q2 earnings and revenue exceeding expectations, but the Q3 revenue forecast of $10.24 billion to $10.29 billion fell short of analyst expectations, leading to a 6.65% drop in its stock [2] - Google was fined €325 million ($381 million) by French data protection authorities for improper ad display to Gmail users, resulting in a 0.55% decline in its stock [2] - Bank of America lowered Figma's target price from $85 to $69 due to valuation concerns, causing Figma's stock to drop by 15.31% [2] Group 3 - JPMorgan Chase announced plans to launch its digital retail bank in Germany in the second quarter of 2026, following its UK launch in 2021 [3] - ConocoPhillips announced a global workforce reduction of 20% to 25% as part of a broader restructuring effort, with most layoffs expected to occur by 2025 [3] - Stephen Milan, nominated by President Trump for the Federal Reserve Board, emphasized the importance of maintaining the independence of monetary policy during his upcoming Senate hearing [3]

Core Viewpoint - Figma's stock price dropped over 15% in pre-market trading, currently at $57.7 [1] Company Summary - Figma experienced a significant decline in its stock price, indicating potential concerns among investors regarding its market performance [1]

Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to improve significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] - Michael has over 10 years of experience in analyzing companies, particularly in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] Group 2 - The Investing Group Deep Value Returns, led by Michael, offers insights through its concentrated portfolio of value stocks, timely updates on stock picks, and a weekly webinar for live advice [3] - The group provides support for both new and experienced investors, fostering an active and vibrant community accessible via chat [3]

Core Viewpoint - Figma's stock price plummeted over 14% after its first earnings report post-IPO, which fell short of Wall Street expectations, leading to concerns about its high valuation compared to peers in the software industry [1][3]. Financial Performance - Figma reported Q2 revenue of approximately $249.6 million, a 41% year-over-year increase, but slightly below the average analyst expectation of $250 million [3][4]. - The company achieved a net profit of about $846,000 under GAAP, contrasting with a loss of approximately $827.9 million in the same quarter last year, resulting in an earnings per share close to breakeven, but below the expected $0.09 [3][4]. - The net revenue retention rate was reported at 129%, down from 132% in Q1, indicating a decline in customer expansion despite strong performance from existing clients [3][4]. Customer Base and Growth Projections - Figma has 1,119 customers with annualized revenue exceeding $100,000, up from 1,031 in the previous quarter [4]. - For Q3, Figma expects revenue between $263 million and $265 million, representing a 33% year-over-year growth, slightly exceeding analyst expectations [4]. - The management anticipates full-year adjusted operating profit between $88 million and $98 million, with total revenue projected between $1.021 billion and $1.025 billion, indicating a growth expectation of about 37% [5]. Market Position and Product Offering - Figma is a cloud-based collaborative design and product development platform, with core products including Figma Design, FigJam, and Dev Mode [8]. - The company emphasizes its end-to-end workflow capabilities, strong cross-role collaboration, and unique design and development ecosystem as key competitive advantages [9]. - Recent product launches include Figma Make and Figma Sites, which integrate AI capabilities into design processes [10]. Analyst Sentiment and Valuation Concerns - Analysts generally hold a cautious stance on Figma due to its high valuation, with most ratings being neutral or market perform rather than buy [14][15]. - The market perceives Figma's valuation as excessive, with expected revenue multiples significantly higher than comparable software companies [16]. - Despite concerns about competition from AI-driven applications, analysts believe AI could serve as a growth catalyst for Figma [15].