Core Insights - Figma's shares surged 253% post-IPO, trading at $118 after debuting at $33, despite broader market declines [1][2] - The company's valuation has reached nearly $60 billion, with projected 2024 sales under $750 million, indicating a high valuation relative to revenue [3] - Figma has experienced over 40% revenue growth in the past two years, showcasing strong performance [3] Market Position - Figma's platform is widely adopted, with "95% of the Fortune 500" using its services, which enhances its credibility but raises questions about future growth potential [5] - The competitive landscape is intensifying, particularly with the rise of artificial intelligence, which may challenge Figma's market position and growth sustainability [6] Growth Concerns - To justify its current valuation, Figma would need to maintain a 40% growth rate for several years, which may be difficult given its already extensive market penetration [6]
Why Figma Stock Skyrocketed 250% This Week