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].

Core Insights - Figma's Q2 revenue reached $249.6 million, exceeding analyst expectations of $248.8 million, with a year-over-year growth of 41% [1] - The company reported a net profit of $846,000 in Q2, a significant turnaround from a loss of $827.9 million in the same period last year [1] - Figma forecasts Q3 revenue to be between $263 million and $265 million, representing an approximate 33% year-over-year growth, surpassing market expectations of $256.8 million [1] - The company anticipates full-year revenue to exceed $1.02 billion, reflecting a growth of about 37%, slightly above market expectations of $1.01 billion [1] - CEO Dylan Field indicated that the strong momentum from the launch of Dev Mode last year may impact the revenue growth rate in Q3 [1]