Figma Shares Decline After Initial IPO Surge

NEW YORK, NY — Shares of Figma, the cloud software company, have seen a noticeable decline after initially skyrocketing during its IPO. Following a strong debut on July 31, 2025, where the stock surged from an IPO price of $33 to a closing price of $115, Figma faced a pullback last month.

Figma’s stock fell 39% in August, reflecting the volatility typical of IPO stocks. After a jump to a peak of $142.92 on August 1, the stock began to stabilize in the last week of the month, driven by profit-taking from early investors.

Despite minimal company-specific news, analysts weighed in with mixed ratings. While some rated Figma as a hold, Piper Sandler rated it overweight with a projected price target of $85, praising its unique platform and business model. In contrast, Goldman Sachs expressed caution, pointing to doubts about Figma’s revenue growth.

Figma is expected to report its first earnings as a public company after the market close today. Analysts predict revenue of $248.7 million, a 40.3% increase compared to the same quarter last year, along with an estimated earnings per share of $0.08.

Following last month’s drop, Figma’s stock remains costly, trading at a price-to-earnings ratio of 36. The company, however, is growing quickly and has a significant endorsement from Adobe, which previously attempted to acquire Figma for $20 billion.

While its high valuation may pose challenges in the near term, the outlook for Figma remains optimistic as it continues to expand in the competitive cloud software market.