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Why Figma Blasted Higher This Week
Yahoo Financeยท 2025-10-09 21:14
Core Insights - Figma's shares have increased nearly 31% following a demonstration by OpenAI's CEO Sam Altman, showcasing Figma's integration with ChatGPT [1][7] - The integration allows users to access Figma through ChatGPT, indicating a potential coexistence of SaaS applications and AI chatbots [2][7] Figma and AI Integration - Altman demonstrated that users can request Figma to create diagrams directly within ChatGPT, enhancing user experience and functionality [3] - Figma's product manager mentioned that ChatGPT could suggest and create an AI FigJam, allowing users to upload files to influence the final product [3] Revenue Potential and Valuation - Despite the promising integration, the material impact on Figma's revenue remains uncertain, and the company currently trades at a high valuation of 229 times forward earnings and over 32 times forward sales [5] - The integration with OpenAI may provide revenue opportunities for third-party software vendors and partners [4] Market Sentiment - Investors reacted positively to the demonstration, viewing it as a sign that software applications can thrive alongside AI chatbots [7] - Figma's stock surged after going public earlier this year, but analysts suggest considering other investment options as Figma was not included in a list of top stock recommendations [8]