Investor Steve Eisman, best known for calling out the 2008 subprime debt crisis, weighed in on whether today's market resembles a bubble as IPOs surge and retail enthusiasm fuels big price swings.‘Not Yet’ A BubbleOn Saturday, Eisman discussed the recent frenzy in new listings on his podcast, The Real Eisman Playbook, addressing the rally behind stocks such as Coreweave Inc. CRWV, Figma Inc. FIG and Atco Ltd. ACLLF. “Does this mean we are entering a bubble? I think not yet,” he says. “People can get carried ...

Group 1 - Figma priced its shares at $33 and closed its first trading session at $115.50, a 250% increase [1] - Circle Internet Group priced its IPO at $31 and closed at $83.23, marking a 165% increase [1] - The average first-day performance of IPOs in the first half of 2025 was 27.5%, just below the high of 29.2% in 2021 and nearly double the 15% from the previous year [1] Group 2 - The tech sector has seen the largest average first-day hike at 36.3% on the NYSE over the past year [2] - 41% of tech IPOs opened above their expected range, the second-highest concentration after consumer goods [2] - More traditional sectors like materials and consumer services have mostly seen IPOs open within their expected price range [2] Group 3 - Figure Technologies debuted with a 44% delta between its IPO price and opening mark but lost some gains by the end of the session [3] - Tech offerings have raised over $13.5 billion this year, the highest amount among all sectors [3] Group 4 - The tech sector's dominance in IPO pops is attributed to the difficulty in valuing rapidly growing companies in new markets [4] - Rapid adoption and potential market size have made crypto-related fintech issues popular among investors, as seen with Bullish's IPO performance [4]

Company Overview - Figma, Inc. (NYSE:FIG) is a design software company that provides a browser-based platform for collaborative interface design, prototyping, and team workflows through various tools [2]. Stock Performance - Figma's stock experienced significant volatility post-IPO, initially soaring from an offer price of $33 to a high of approximately $142 within two days of trading [1]. - Following this peak, Figma's stock has declined over 60%, currently trading in the low $50s [1]. - Despite reporting strong numbers in its first quarter as a publicly traded company, the stock plummeted 20% the following day, attributed to its previous inflated valuation [1].

Company Overview - Figma is a collaborative tool for interface design, functioning as an AI-powered ecosystem that aids teams in transforming ideas into finished products [4] - The company has attracted notable clients such as Zoom Video Communications, Duolingo, and Atlassian, which has generated significant interest from industry analysts and investors [5] - Figma's market cap stands at $27 billion, surpassing Adobe's proposed acquisition price of $20 billion [7] Financial Performance - In the first half of 2025, Figma reported revenue of $478 million, reflecting a 43% increase compared to the same period the previous year [8] - The net dollar retention rate in Q2 was 129%, indicating that existing customers are increasing their spending on the platform [8] - Figma achieved a profit of $22 million in the first half of the year, contrasting with a loss of $814 million in the first two quarters of 2024 due to high operating expenses [9] Market Position and Competition - Figma is recognized as the No. 1 company in its industry, although it faces competition from companies like Adobe, which have greater resources to invest in AI and other technologies [6] - The company has maintained a rapid but slowing revenue growth rate, raising concerns about its valuation despite the recent stock pullback [10]

Key Points Figma's IPO was a smashing success, but the share price has dropped since the debut. The company's first post-IPO results revealed strong sales growth, but that may slow a bit. Still, its business remains solid, bolstered by growng demand and a healthy balance sheet. 10 stocks we like better than Figma › Figma (NYSE: FIG) -- a recent initial public offering (IPO) stock -- was hot when it debuted on July 31. Its share price more than tripled that day from an initial $33 per share. After ...

The newly public software company is growing fast, but the valuation is ahead of the fundamentals.Software company Figma (FIG -4.24%), which specializes in design tools for websites, apps, and a growing number of other things, went public on July 31 with a bang. The stock rocketed from its IPO price of $33 per share to as high as $124 per share on its first trading day, an incredible surge.The stock has taken a beating since then as investor enthusiasm cooled off a bit. Within days, Figma stock fell sharply ...

Core Viewpoint - Figma is not positioning itself as a Bitcoin holding company but rather as a design company that sees value in Bitcoin as part of a diversified treasury strategy [2][4]. Company Summary - Figma reported holding $91 million in Bitcoin exchange-traded funds, an increase from $70 million prior to its public debut [2]. - The company achieved $249.6 million in Q2 revenue, reflecting a 41% increase from $177.2 million the previous year, surpassing analysts' expectations of $248.8 million [8]. - Figma's net income for the quarter was reported at $28 million [9]. - Despite positive revenue growth, Figma's stock fell 28% from nearly $69 to about $50 due to concerns over slowing growth [11]. - Revenue growth has decreased from 46% in Q1 to 41% in Q2, with expectations of further decline in the current quarter [12]. Industry Summary - A trend has emerged where several firms are transitioning to become Bitcoin proxies to enhance shareholder value, prompting increased supervision from Nasdaq [5]. - Since January, at least 184 firms have committed to raising over $132 billion for cryptocurrency purchases, a significant increase from $33.6 billion raised by 10 firms before this year [5][6].

Core Insights - Ark Invest purchased over 108,000 shares of Figma after its stock dropped nearly 20% following a disappointing earnings report as a public company [1] - Figma's stock initially surged over 250% during its IPO, but subsequent Q2 results and guidance fell short of expectations, leading to a significant selloff [2] - Figma has a solid user base with over 13 million monthly users and more than 1,000 clients paying over $100,000 annually, including major companies like Alphabet, Microsoft, Netflix, and Uber [3] Financial Performance - In Q2 2025, Figma reported record revenue of $250 million, marking a 41% year-over-year increase [5] - The adjusted operating margin was 5%, while the adjusted free cash flow margin was significantly higher at 24% [5] Product Innovation - Figma has expanded its product portfolio by launching four new products, including Figma Make, an AI-powered tool for creating prototypes and web applications [6][7] - Other new products include Draw for enhanced visual expression, Sites for web publishing, and Buzz for scalable brand asset creation [7] Market Context - Adobe attempted to acquire Figma for $20 billion in 2022, but the deal fell through in 2023 due to competition concerns raised by U.K. regulators [4]

Company Overview - Figma is a collaborative design platform utilized by millions for creating, prototyping, and delivering digital products, primarily generating revenue through subscription software [3][5] - The company reported a 41% year-over-year revenue increase to nearly $250 million, indicating strong growth despite market challenges [4][7] Financial Performance - Figma's second-quarter 2025 results showed modest operating income of $2.1 million with a slim 1% margin, while non-GAAP operating income was $11.5 million, reflecting a healthier 5% margin [7] - Operating cash flow was strong at $62.5 million with a 25% margin, and adjusted free cash flow was solid at $60.6 million, or a 24% margin [8] - The company holds a robust cash balance of $1.6 billion, providing ample room for growth and innovation [8] Growth Drivers - Figma's growth is supported by recent acquisitions, including Modyfi for advanced animation tools and Payload for content management, enhancing its platform capabilities [9][10] - Over 80% of customers used at least two Figma products in the latest quarter, indicating strong cross-product adoption [11] - Upcoming AI-powered features aim to attract new user groups, potentially expanding Figma's customer base and revenue opportunities [12] Future Projections - The company expects third-quarter revenue between $263 million and $265 million, representing about 33% growth year-over-year [13] - For the full year 2025, revenue is forecasted to reach between $1.021 billion and $1.025 billion, showing a strong 37% increase over 2024 [13] - Analyst Brent Bracelin predicts annual recurring revenue could triple to over $3 billion by 2030, with free cash flow margins approaching 30% [15] Market Sentiment - Figma's stock has experienced significant volatility, dropping 60% from its highs, leading to discussions about whether this represents a buying opportunity [5][17] - Analyst coverage is limited, but Piper Sandler recently initiated coverage with an "Overweight" rating and a price target of $85, suggesting a potential upside of about 10% from current levels [14] - The broader market consensus among analysts is a "Hold" rating with an average price target of $67.57, indicating a potential upside of roughly 27% [16]

Core Viewpoint - Figma's IPO was highly anticipated, with shares initially gaining nearly 158% on the first trading day, but have since declined approximately 55% as of September 8, raising questions about its investment potential following its first earnings report [3][4]. Company Overview - Figma operates in the digital design market, which is largely dominated by Adobe, a company valued among the top 10 software stocks globally [5]. - The company generated nearly $900 million in revenue over the last 12 months and has a self-estimated total addressable market of $33 billion, indicating less than 3% market penetration and significant growth potential [8]. Product Advantages - Figma's platform allows for real-time collaboration between creative and coding teams, offering a more efficient alternative to Adobe's solutions, which can be cumbersome for collaborative projects [7]. Financial Performance - In Q2, Figma's sales grew by 41%, slightly exceeding analyst expectations, but the stock fell nearly 20% due to a significant miss on earnings per share [9]. - The company reported a positive adjusted operating margin of 5% and an adjusted free cash flow margin of 24%, with expectations of 37% revenue growth for the full year [10]. Customer Metrics - Figma's net dollar retention rate among customers with annual recurring revenue of $10,000 or more was 129%, with customers spending 29% more than in the prior year's quarter, indicating strong product value [11]. Market Sentiment - Following Figma's Q2 report, Wall Street analysts lowered their price targets by an average of 15%, with a consensus price target of approximately $67.50, suggesting around 28% upside from the stock's closing price on September 8 [12]. - Figma's market cap was around $25.7 billion as of September 8, which is close to the $20 billion acquisition offer from Adobe in September 2022, with current quarterly revenues approximately 90% higher than at that time [13][14].