Figma Inc. (NYSE:FIG) is one of the oversold stocks to buy now. On January 5, RBC Capital analyst Rishi Jaluria lowered the firm’s price target on Figma to $38 from $65 and kept a Sector Perform rating on the shares. The firm believes that 2026 will be a pivotal year where companies prepared for enterprise AI adoption experience significant growth, while those lagging may struggle against the perception that AI is making traditional software obsolete. Although management teams are issuing conservative guid ...

Core Insights - Figma (FIG) shares have decreased by 31.6% over the past month, significantly underperforming the Zacks Computer and Technology sector's return of 3.3% and the Zacks Internet Software industry's decline of 7.7% [1][9] - The company's investments in AI-powered products, such as Figma Make, have led to increased costs, negatively impacting gross margins [2][20] - Despite the share price decline, Figma is experiencing strong client growth, with a net dollar retention rate of 131% for paid customers with over $10,000 in annual recurring revenues (ARR) [7][9] Financial Performance - As of September 30, 2025, Figma had 12,910 paid customers with more than $10,000 in ARR and 1,262 customers with over $100,000 in ARR [5] - The Zacks Consensus Estimate for Figma's 2025 earnings is 33 cents per share, reflecting a 108.80% year-over-year increase [14] - Figma expects revenues for 2025 to be between $1.044 billion and $1.046 billion, indicating a 40% year-over-year growth at the midpoint [15] Product and Client Expansion - Figma's expanding portfolio, including the launch of Figma Make, has been a significant growth driver, with approximately 30% of high-spending customers using the tool weekly by the end of September [6][11] - The company added over 90,000 paid teams in just two quarters, bringing the total to 540,000 paid customers [11] - Figma reported a 27% quarter-over-quarter increase in customers signing multiyear agreements, highlighting its growing role in design and product development [12] Competitive Landscape - Figma faces stiff competition from companies like Adobe and Autodesk, which are also expanding their AI-driven revenue bases [16][20] - Atlassian is enhancing its collaboration software with generative AI features, which may impact Figma's market position [17] Valuation - Figma shares are currently trading at a premium, with a forward 12-month Price/Sales ratio of 14.61X, indicating potential overvaluation [18][20]