Core Viewpoint - Figma is positioned for a potential breakout despite its recent IPO volatility, with strong fundamentals and significant growth in AI investments [1][3][12] Company Performance - Figma's stock was initially listed at $33, peaked at $142.92 shortly after its IPO, but has since dropped to $37.33, nearly 75% below its peak [2] - The company reported a revenue increase of 38% to $274.2 million in the third quarter, with an adjusted operating income of $34 million, indicating solid profitability [10][11] Market Valuation - Figma's current market cap is approximately $19 billion, which is below the $20 billion valuation Adobe had proposed for the company four years ago [5][10] - The stock is trading at a price-to-sales ratio of roughly 15 after accounting for $1.5 billion in cash and marketable securities, which is considered reasonable compared to other software stocks [11][12] AI Investments - Figma is making significant strides in AI, launching tools like Figma Make, Figma Sites, and Figma Buzz, and acquiring Weavy, which has been rebranded as Figma Weave [8][9] - Despite initial market punishment for its AI investments, the integration of AI tools is seen as a strategic move that could enhance Figma's position in the web design software market [7][9]

Core Insights - Figma went public on July 31 at $33 per share, reaching a 52-week high of $142.92 in August before experiencing a significant decline [1] - The company is focusing on artificial intelligence as a key growth strategy, highlighted by its acquisition of Weavy, an AI-powered design solutions start-up, in October [1][7] Group 1: Figma's AI Strategy - Figma's AI strategy aims to enhance human creativity rather than replace it, viewing AI as a tool to streamline tasks and support creative visions [4] - The acquisition of Weavy is intended to bolster Figma's AI capabilities in the design field, integrating multiple AI models into a single interface for user flexibility [5][6] Group 2: Weavy's Impact - Weavy differentiates itself by not solely relying on user prompts but by combining AI with professional editing software, allowing for collaborative and customizable design processes [5][6] - The rebranded Figma Weave is already utilized by various professionals, including architects and product designers, for tasks such as creating visual workflows and editing images [6] Group 3: Financial Performance - Figma's investments in AI have contributed to a 38% year-over-year sales growth in the third quarter [7]

Figma - Figma's current market cap is $18.3 billion, down from $20 billion in 2022 when Adobe attempted to acquire it, a deal blocked by regulators due to antitrust concerns [1] - The company has achieved a high net revenue retention rate, with existing customers spending approximately 31% more year-over-year, indicating a strong competitive position [2] - Figma's gross margin has decreased to 86% in the third quarter from 92% a year ago, impacted by the introduction of AI-powered tools [2] - Figma has acquired AI image and video generation company Weavy, integrating it into a new product called Figma Weavy [3] - The company launched Figma Make in July, enabling rapid design prototype generation through natural language prompts, which has seen strong adoption among large customers [3] - Figma focuses on cloud-based design software for user interfaces and user experience development, emphasizing AI as an enhancement rather than a replacement for its software [4] - Despite potential competition from Adobe, Figma has demonstrated resilience and innovation, with an enterprise value of $17.1 billion, approximately 13 times analysts' revenue expectations for 2026 [7] Alibaba - Alibaba is the largest cloud provider in China and is investing in its own foundational large language model for AI software development [8] - The company's e-commerce business faces pressure from competitors like ByteDance's Douyin and PDD Holdings' Temu [9] - Alibaba is investing in "quick commerce" to improve delivery times, which has impacted profitability but shows promise for growth [10] - The company has allocated about 120 billion yuan ($17.2 billion) in capital expenditures over the last year for AI and cloud infrastructure, resulting in a 34% year-over-year revenue growth last quarter [11] - Despite perceptions of slow growth and declining profitability, Alibaba's long-term potential remains strong, particularly in maintaining e-commerce market share and recovering profitability [12] - The cloud computing segment is experiencing rapid growth, with a favorable enterprise value to forward EBITDA ratio of less than 17, indicating good value [13] Taiwan Semiconductor Manufacturing (TSMC) - TSMC is the world's largest contract chip manufacturer, holding 71% of spending on third-party semiconductor foundries in the third quarter [14] - The company's advanced technology allows it to produce high-quality chips at competitive prices, benefiting from a virtuous cycle of winning contracts and investing in R&D [15] - TSMC is experiencing growth from increased spending on AI, with management forecasting AI-related revenue to grow at a mid-40% annualized rate from 2025 to 2029 [17] - The company expects overall annualized revenue growth of 20% through 2029, supporting stable gross margins while introducing new technology [17] - TSMC's stock is considered attractive with a forward price-to-earnings ratio of 25, indicating strong potential for bottom-line growth [18]

Key Points Figma has wowed users and investors alike with its collaborative design tool. The stock declines have stopped (at least for now). Rapid revenue growth could bode well for Figma stock long-term. 10 stocks we like better than Figma › It may surprise investors to know that Figma (NYSE: FIG) stock is up 13% since its July 31 initial public offering (IPO). However, you would have had to have been an insider to benefit from that. If you had waited a day to buy, you would be down two-thirds o ...

Company Overview - Figma and UiPath both leverage artificial intelligence to enhance workflows and automate repetitive tasks, with Figma focusing on UI/UX design tools and UiPath specializing in robotic process automation [1] - Figma went public at $33 and currently trades at approximately $37, while UiPath went public at $56 and now trades around $16 [2] Figma's Growth and Financials - Figma's cloud-based tools are lightweight and scalable, allowing for collaborative work among multiple users [4] - The company offers a free tier for individuals and small teams, and a paid tier for larger organizations, with 95% of Fortune 500 companies using its services [5] - In 2024, Figma's revenue increased by 48% to $749 million, with a net loss of $732 million, compared to a net profit of $738 million in 2023 [7] - The number of customers generating over $10,000 in annual recurring revenue grew by 45% to 10,517, and the net dollar retention rate for this cohort increased by 12 percentage points to 134% [7] - Analysts project Figma's revenue to grow at a CAGR of 27% from 2024 to 2027, reaching $1.53 billion, while narrowing its net loss to $331 million [9] UiPath's Growth and Financials - UiPath serves over 60% of Fortune 500 companies and is the leading company in robotic process automation [10] - From fiscal 2021 to fiscal 2025, UiPath's revenue grew at a CAGR of 24%, reaching $1.4 billion, but growth slowed to just 9% in recent fiscal years [11] - Analysts expect UiPath's revenue to grow at a steady CAGR of 10% from fiscal 2025 to fiscal 2028, reaching $1.88 billion, with profitability anticipated in fiscal 2026 [14] - UiPath is focusing on cost-cutting and streamlining operations to stabilize margins and profits, while the RPA market is expected to grow at a CAGR of 43.9% from 2025 to 2030 [15] Investment Considerations - UiPath is viewed as a more compelling investment due to its rising profits and lower valuation compared to Figma, which faces challenges in balancing growth and spending [17] - Figma's enterprise value is nearly $17 billion, trading at 13 times this year's sales, while UiPath's enterprise value is $7.34 billion, trading at four times its fiscal 2026 sales [9][16]

Core Insights - Figma and Autodesk are both design software providers but operate in different markets, with Figma focusing on collaborative digital product design and Autodesk on engineering and industrial design software [1] - Both companies are integrating AI into their platforms to enhance value creation, with Figma aiming to boost creative productivity and user adoption, while Autodesk focuses on engineering optimization and risk reduction [1] Figma Overview - Figma is heavily investing in AI features to enhance its product suite, including the integration of Gemini 3 Pro and Nano Banana Pro for AI image generation and editing [3] - The collaboration with OpenAI allows users to generate FigJam diagrams from ChatGPT conversations, enhancing user experience [4] - Figma's acquisition of Weavy enables users to access leading AI models and editing tools on a single platform, making it competitive in the image editing market [5] - As of September 30, 2025, Figma had 12,910 paid customers with over $10,000 in annual recurring revenues (ARR) and 1,262 customers with over $100,000 in ARR, achieving a net dollar retention rate of 131% for high-spending customers [6] - Despite growth, Figma's non-GAAP operating profit decreased by 28.9% year-over-year to $34.02 million, with the operating profit margin dropping from 24% to 12% due to cost pressures from new AI features [7] Autodesk Overview - Autodesk leverages decades of proprietary data to train its AI models, integrating generative design and predictive analytics to enhance productivity [9] - The company reports significant adoption of AI tools across its platforms, with over 2.6 million constraints delivered by its AI-based Sketch AutoConstrain feature [10] - Autodesk is positioned to benefit from AI monetization and subscription revenues, although it faces high costs related to cloud infrastructure and talent acquisition [11] - Research and development costs remain high as Autodesk seeks to maintain its competitive edge, alongside increasing sales and marketing expenditures [12] - Autodesk's fiscal 2026 earnings are projected to grow by 20.5% year-over-year, with recent estimates revised upward [13] Comparative Analysis - In the last three months, Figma shares have declined by 25.7%, while Autodesk shares have decreased by 5.4% [14] - Autodesk's larger scale and market capitalization provide it with a better position to absorb cost pressures and monetize investments, making it a comparatively safer investment during the current AI growth phase [15] - Figma trades at a forward 12-month price-to-sales (P/S) multiple of 12.51X, which is higher than Autodesk's 8.12X [16]

Key Points Figma's price quickly tripled after its IPO, then plummeted nearly 70%. The company is positioned to compete in a new era of AI-infused software. Figma's stock price is far more palatable and offers more upside at its current price. 10 stocks we like better than Figma › Whenever a company goes public, you'll often read and hear a lot of buzz about it. Unfortunately, investing in the hottest initial public offering (IPO) stocks frequently backfires. Take Figma (NYSE: FIG) for example. ...

Core Investment Thesis - Figma and CoreWeave are positioned to benefit from the expanding artificial intelligence (AI) market, making them attractive long-term investment opportunities [1][3]. Figma Overview - Figma is a developer of cloud-based user interface (UI) and user experience (UX) design tools, experiencing significant growth with a 45% year-over-year increase in customers generating at least $10,000 in annual recurring revenue (ARR), reaching 10,517 customers [5]. - The company's total revenue rose by 48% to $749 million, with a net dollar retention rate of 134%, indicating strong customer loyalty and growth potential [5][9]. - Figma's tools are lightweight and scalable, operating natively in web browsers, which enhances collaboration among users [6]. - The market capitalization of Figma is currently $19 billion, with a valuation of 15 times its projected 2026 sales [8]. - Analysts project Figma's revenue to grow at a compound annual growth rate (CAGR) of 27% from 2024 to 2027, reaching $1.53 billion, while narrowing its net loss from $732 million to $331 million [9]. CoreWeave Overview - CoreWeave transitioned from an Ethereum mining company to a provider of cloud-based GPU services for AI and machine learning tasks, operating 33 data centers across the U.S. and Europe [10]. - The company offers a cost-effective solution for AI software companies, processing tasks approximately 35 times faster and 80% more cost-effectively than larger cloud platforms [11]. - CoreWeave's revenue surged by 738% in 2024, reaching $1.92 billion, with expectations of a CAGR of 116% from 2024 to 2027, potentially reaching $19.2 billion [13]. - The market capitalization of CoreWeave is $38 billion, with a valuation of three times its projected 2026 sales, indicating a potentially attractive investment despite concerns over rising debt and dilution [14].

Core Insights - Brown Advisory Mid-Cap Growth Strategy underperformed its benchmark, the Russell Midcap® Growth Index, which increased approximately 3% in Q3 2025 [1] Company Overview - Figma, Inc. (NYSE:FIG) is a leading technology company specializing in browser-based user interface design tools [2][3] - Figma's stock closed at $37.36 per share on December 17, 2025, with a market capitalization of $18.56 billion [2] Performance Metrics - Figma, Inc. experienced a one-month return of 11.59% but saw a decline of 35.87% over the last three months [2] - The company reported revenue of $274 million in Q3 2025, marking a 38% increase from Q3 2024 [4] Investment Strategy - Brown Advisory highlighted Figma's strong growth driven by tailored SKUs for different user types and noted that shares rose more than 150% above the IPO price, leading to an exit from the position [3] - Despite acknowledging Figma's potential, the company believes certain AI stocks offer greater upside potential and less downside risk [4] Hedge Fund Interest - Figma, Inc. was held by 38 hedge fund portfolios at the end of Q3 2025, a significant increase from zero in the previous quarter [4]

Core Insights - Figma is heavily investing in AI integration to enhance its product suite, including collaborations with OpenAI and the introduction of new AI-driven features [1][2][11] Group 1: AI Integration and Product Development - Figma has integrated Gemini 3 Pro and Nano Banana Pro into its design workflows, significantly advancing its AI image generation and editing capabilities [1] - The collaboration with ChatGPT allows users to generate FigJam diagrams directly from conversations, enhancing user experience [2] - Figma acquired Weavy to provide users with access to leading AI models and editing tools on a single platform, increasing its competitive edge in the image editing market [3] Group 2: Customer Growth and Financial Performance - As of September 30, 2025, Figma had 12,910 paid customers with over $10,000 in annual recurring revenues (ARR) and 1,262 customers with over $100,000 in ARR [4] - The company achieved a net dollar retention rate of 131% for customers spending $10,000 or more annually in Q3 2025, with a total of 540,000 paid customers [5][11] - Approximately 30% of high-value customers were using Figma Make weekly by the end of September 2025, indicating strong product adoption [5] Group 3: Competitive Landscape - Figma differentiates itself as a real-time UI/UX collaboration tool, competing with Adobe and Atlassian in the visual editing and planning spaces [6] - Adobe is expanding its client base with AI-infused features, expecting double-digit ARR growth in fiscal 2026 [7] - Atlassian's generative AI features are rapidly gaining traction, with over 3.5 million monthly active users, marking a 50% increase [8] Group 4: Stock Performance and Valuation - Figma shares have declined by 35.9% over the past three months, compared to a 13.4% decline in the Zacks Internet - Software industry [9] - The stock is trading at a forward 12-month Price/Sales ratio of 11.45X, significantly higher than the industry average of 4.81X, indicating a premium valuation [12] - The consensus earnings estimate for 2025 is 41 cents per share, reflecting a 110.96% increase from the reported figure of 2024 [13]