Group 1: Company Overview - Adobe is a legacy creative software giant known for products like Photoshop, Illustrator, and Premiere, primarily selling bundled Creative Cloud subscriptions across various creative services [3] - Figma, in contrast, is a browser-based design and prototyping tool focused on real-time collaboration, competing mainly with Adobe XD, and has gained popularity among design teams, especially in startups and tech companies [4] Group 2: Financial Comparison - Adobe's trailing twelve months (TTM) revenue stands at $23.8 billion with a year-over-year growth of 11%, while Figma's TTM revenue is $1.0 billion with a much higher growth rate of 38% [7] - Adobe's TTM net income is $7.1 billion, whereas Figma reports a net loss of $0.9 billion [7] - Free cash flow for Adobe is $9.9 billion compared to Figma's $0.3 billion, indicating Adobe's strong cash generation capabilities [7] - Adobe's price-to-earnings ratio is 17.6, while Figma does not have a P/E ratio due to its net loss; however, Figma's price-to-sales ratio is significantly higher at 13.6 compared to Adobe's 5.1 [7][8]

Core Insights - Figma's stock has experienced significant volatility, dropping from a 52-week high of $142.92 to a low of $26.79, presenting a potential buying opportunity [1] Group 1: Business Strategy - Figma is focused on reinventing design software by integrating artificial intelligence, exemplified by its acquisition of AI design startup Weavy, now known as Figma Weave [3] - The proprietary AI tool, Figma Make, is utilized weekly by 30% of customers generating annual recurring revenue (ARR) of $100,000 or more, indicating strong engagement and growth [4] Group 2: Customer Growth - In Q3 2025, Figma added over 1,000 customers with ARR of $10,000 or more, showcasing effective customer acquisition strategies [5] - The net dollar retention rate for clients with ARR of at least $10,000 was 131%, suggesting that existing customers are increasing their spending [5] Group 3: Financial Performance - Figma reported record revenue of $274.2 million in Q3, marking a 38% year-over-year increase, with consistent growth observed since Q1 2024 [6] - The company anticipates Q4 revenue to be between $292 million and $294 million, reflecting a projected 35% year-over-year growth at the midpoint [6] Group 4: Financial Health - Figma exited Q3 with total assets of $2.1 billion, including over $1.5 billion in cash and marketable securities, indicating a strong financial position [7] - Total liabilities stood at $684.7 million, with $473.6 million classified as deferred revenue, representing upfront payments from customers [7]

We came across a bullish thesis on Figma, Inc. on Bullseye Picks’s Substack by Bullseye Investing. In this article, we will summarize the bulls’ thesis on FIG. Figma, Inc.'s share was trading at $27.07 as of January 29th. FIG’s forward P/E was 67.57 according to Yahoo Finance. Jim Cramer's Positive On Seagate Technology Copyright: scyther5 / 123RF Stock Photo Figma, a web-based platform for designing, prototyping, and building digital products such as websites and apps, represents a leading disruptor in ...

Company Overview - Figma, Inc. (NYSE:FIG) is a cloud-based design platform that facilitates team collaboration on interface design, prototyping, and product development, offering tools for design systems, whiteboarding, presentations, illustration, brand assets, websites, and AI-driven prototyping [2]. Stock Performance - Figma's stock has experienced significant volatility, initially launching at $33 and reaching an intraday high of $142, before declining to approximately $54, representing a drop of more than 20% from its peak [1][2]. - The current price-to-earnings (P/E) ratio for Figma is reported at 178, which is considered excessively high [2]. Market Sentiment - There is skepticism regarding the valuation of Figma, with concerns that investors who purchased shares at the peak price were not fully aware of the company's business model [2]. - The overall sentiment in the design software market is cautious, particularly with competitors like Adobe facing challenges [1]. Investment Considerations - While Figma shows potential as an investment, there are suggestions that other AI stocks may offer better upside potential with less downside risk [3].

Core Insights - Figma launched its IPO at the end of July 2025, raising $1.2 billion at a valuation of $33 per share, with shares soaring to $125 shortly after the launch [1] Company Overview - Figma is a technology company that specializes in design software, which has gained significant attention in the market due to its recent IPO [1] Financial Performance - The IPO raised $1.2 billion, indicating strong investor interest and confidence in the company's valuation and future growth potential [1] Market Reaction - Following the IPO, Figma's shares experienced a dramatic increase, rising from the initial offering price of $33 to $125, reflecting a substantial market demand [1]

Group 1: Figma Inc Overview - Figma Inc (NYSE:FIG) is recognized as one of the best large-cap stocks under $100, with significant upside potential [1] - The company operates a browser-based platform that facilitates product development through UI/UX design, covering stages from idea generation to prototyping and design systems [4] Group 2: Analyst Ratings and Price Targets - Elizabeth Porter from Morgan Stanley maintained an Equal Weight rating on Figma Inc, revising the price target from $65 to $48, indicating an attractive upside of almost 66% [1] - Kash Rangan of Goldman Sachs assigned a Neutral rating to Figma Inc, forecasting a price target of $40, which represents an upside of over 38% from the current level [3] Group 3: Market Context and Outlook - SaaS application companies, including Figma, underperformed in 2025 compared to the broader software segment and technology sector, but a positive outlook is anticipated for the coming year [2] - The company is noted for its unique intellectual property that allows synchronization of changes across multiple users, positioning it as a leader in collaborative design for product development [3]

Core Viewpoint - Figma, once a hot stock, has seen a significant decline of over 75% from its all-time high, but it may be one of the most underestimated stocks in the market for 2026 [1] Group 1: Current Market Conditions - The software market is facing tough times, with a general sentiment that AI may render many software applications obsolete [3] - This sentiment mirrors the internet boom of the late 1990s, where perceptions often outpaced the actual impact of new technologies [3] Group 2: Figma's Unique Position - Figma offers robust capabilities for creating digital products and interfaces, including real-time collaboration and integration with AI applications like OpenAI's ChatGPT [4] - The company is characterized as a new-age software firm, suggesting resilience against the current market downturn [4] Group 3: Financial Performance - Figma is nearing $1 billion in trailing-12-month revenue, with projections of nearly $1.3 billion this year and over $1.5 billion next year [5] - The company has a high revenue retention rate of 131%, indicating that users are increasing their spending over time [5] Group 4: Investment Opportunities - The decline in Figma's stock price has created attractive investment opportunities, with a price-to-sales ratio of 14, which is favorable for a company expected to grow revenue by 50% over the next two years [6] - Figma is already profitable, converting over 25% of its sales into free cash flow, enhancing its investment appeal [6] Group 5: Future Outlook - If Figma meets Wall Street's growth estimates over the next two years, it could outperform the broader market despite current fears surrounding AI disruption [8] - A potential easing of fears regarding AI could lead to a rise in Figma's valuation, increasing the stock's upside potential [8]

Core Insights - The software design firm experienced a significant rise in stock price initially, driven by investor enthusiasm and hype surrounding its potential [1] - Following the initial surge, the company's stock price subsequently declined, indicating a correction after the initial excitement wore off [1] Company Performance - The firm saw a notable increase in its stock value early on, suggesting strong market interest and speculative buying [1] - The decline in stock price post-hype reflects a common trend in the market where initial excitement does not sustain long-term value [1] Investor Behavior - Investors were initially attracted to the firm due to the hype, leading to a rapid increase in stock purchases [1] - The eventual drop in stock price highlights the risks associated with investing based solely on market sentiment rather than fundamental analysis [1]

Core Insights - The information technology sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Figma Inc (NYSE:FIG) has an RSI value of 26.9, with a stock price decline of approximately 28% over the past month and a 52-week low of $18.41. The stock closed at $28.42 after a 5% increase [5] - Similarweb Ltd (NYSE:SMWB) has an RSI value of 29, with a stock price decline of around 10% over the past five days and a 52-week low of $5.48. The stock closed at $5.69 after a 2.5% increase [5] - Nutanix Inc (NASDAQ:NTNX) has an RSI value of 27.9, with a stock price decline of about 14% over the past five days and a 52-week low of $41.33. The stock closed at $42.98 after a 3.4% increase [5]

Core Insights - Figma, a collaborative design platform, saw its share price more than quadruple on its IPO day but subsequently lost most of those gains in the following months [1][2] Company Overview - Figma provides a web-based collaborative design architecture that allows design teams to work together in real-time on digital products such as websites and mobile apps [7][8] - The company has shown strong results in the quarters following its IPO [8] Stock Performance and Analysis - Figma's current share price is under $40, indicating it does not face issues related to high share prices that could necessitate a stock split [6] - The company is not a candidate for a reverse stock split, as it is not trading below the minimum levels set by major stock markets [6] - Despite the initial hype leading to a decline in value, Figma's stock is now considered reasonably priced, suggesting potential for recovery in the future [7]