What is the forecast on Figma

The forecast for Figma (NYSE: FIG) is as follows: 1. **IPO Valuation and Pricing**: Figma has set its tentative IPO pricing at $25-$28 per share, which would give the stock a fully diluted market cap of $14.6 billion-$16.4 billion. This valuation is above the $12.5 billion valuation at the time of its tender offer last year but below the $20 billion that Adobe ADBE planned to pay to acquire the company before the deal was called off in late 2023. 2. **Analyst Ratings and Price Target**: The consensus rating for Figma is "Neutral" with an average price target of $4.69, indicating a potential downside from the current price of $6.03. Analysts have set a range of price targets, with some predictions as low as $3.75 and others at $6.25, reflecting a mixed outlook. 3. **Technical Indicators**: Figma's technical indicators show a mixed signal. The stock is trading above its 5-day, 10-day, and 50-day moving averages, which are $5.9, $5.93, and $5.22 respectively. This suggests a short-term upward trend. However, the Relative Strength Index (RSI) is at 64.28, which is neither overbought nor oversold. The Moving Average Convergence Divergence (MACD) is slightly negative at -0.06, and the KDJ indicator is at 42.5, both of which suggest a lack of strong momentum. |code|Ticker|Name|Date|Moving Average|market_code| |---|---|---|---|---|---| |FIGS|FIGS.N|FIGS|20250721|5.8960|169| |code|Ticker|Name|Date|bollinger lower band|RSI|KDJ|MACD|market_code| |---|---|---|---|---|---|---|---|---| |FIGS|FIGS.N|FIGS|20250721|5.4731|64.2767|42.5004|-0.0625|169| 4. **Support and Resistance Levels**: The support level for Figma is at $5.81, and the resistance level is at $6.21. The stock is trading closer to the resistance level, which could indicate a potential pullback if the resistance is strong enough. |code|Ticker|Name|Date|Support Level|Resistance Level|market_code| |---|---|---|---|---|---|---| |FIGS|FIGS.N|FIGS|20250721|5.8100|6.2050|169| 5. **Financial Ratios and Growth Rates**: Figma has a high P/E ratio of 637.56, indicating that the stock is overvalued relative to its earnings. The company has a negative net income of $102,000 and a remarkable revenue growth rate of 4.7%, but the net income has decreased by 107.11%. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |FIGS|FIGS.N|FIGS|2024 Q2|-75.99301615015277|4.410998175658066|-50|169| |FIGS|FIGS.N|FIGS|2024 Q3|-127.6602668402213|-1.513725380011801|-133.33333333333334|169| |FIGS|FIGS.N|FIGS|2024 Q4|-81.15|4.770973930084599||169| |FIGS|FIGS.N|FIGS|2025 Q1|-107.10801393728222|4.701030236476575|-100|169| |code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code| |---|---|---|---|---|---|---|---| |FIGS|FIGS.N|FIGS|20240722|47.900042|2.014300068761906|2.7157909259634496|169| |FIGS|FIGS.N|FIGS|20240723|51.673518|2.172982871606494|2.9297358702917604|169| |FIGS|FIGS.N|FIGS|20240724|50.133324|2.1082143806495193|2.8424114032189802|169| |FIGS|FIGS.N|FIGS|20240725|52.212586|2.1956518434414347|2.9602994337672333|169| |FIGS|FIGS.N|FIGS|20240726|51.36548|2.160029173415099|2.912270976877204|169| |FIGS|FIGS.N|FIGS|20240729|51.21146|2.153552324319401|2.9035385301699264|169| |FIGS|FIGS.N|FIGS|20240730|50.980431|2.143837050675855|2.8904398601090096|169| |FIGS|FIGS.N|FIGS|20240731|50.110156|2.1072401202194917|2.8380451798653414|169| |FIGS|FIGS.N|FIGS|20240801|49.724694|2.091030580833188|2.816214063097147|169| |FIGS|FIGS.N|FIGS|20240802|46.332621|1.9483866342337146|2.624100235537031|169| 6. **Industry and Sector Performance**: Figma operates in the Textiles, Apparel & Luxury Goods industry and is part of the Consumer Discretionary sector. The company's financial performance is impressive with a notable revenue growth rate and a strong return on assets (ROA) of -0.02%, indicating efficient use of assets. In conclusion, while Figma has shown some positive growth indicators, the high P/E ratio and negative net income suggest that investors should exercise caution. The mixed analyst ratings and technical indicators further complicate the outlook, indicating that potential investors should carefully consider their investment strategy and risk tolerance before investing in Figma.