Is figma a buy pre ipo

**Figma's IPO presents a mixed outlook for potential buyers**, and whether it's a "buy" pre-IPO depends on your investment strategy, risk tolerance, and the weight you give to Figma's growth prospects versus its current financials. Here's a detailed analysis:

1. **Strong Growth Prospects**:
- Figma has shown impressive growth in revenue, with a 4.7% year-over-year increase.
- The company has a strong growth trajectory, with a 46% increase in the first quarter of 2025 and a projected 39%–41% increase in the second quarter.
- Figma's valuation is supported by its innovative product and strong market position, which analysts believe will allow it to remain a category leader.
2. **Current Financials**:
- Figma's net income has declined significantly, with a -107.11% year-over-year growth.
- The company reported a net loss of $102,000 and a diluted EPS of $0 for the latest quarter.
- Figma's financials are weighed down by high expenses, which could indicate inefficiencies or strategic investments ahead of the IPO.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|FIG|FIG.N|Figma|2025 Q1|231.84473197781887|46.06699140364465||169|

3. **Market Sentiment and Valuation**:
- Figma's IPO has been well-received, with the company pricing its shares above the expected range, raising $1.2 billion.
- The IPO values Figma at nearly $19.34 billion on a fully diluted basis, which is a significant increase from its previous valuation.
- Figma's P/E ratio is high at 637.56, indicating that the stock is expensive relative to its earnings.
- The company's P/S ratio is 1.91, which is relatively low compared to some of its peers, suggesting that the market may be willing to pay a premium for Figma's growth potential.

|code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code|
|---|---|---|---|---|---|---|---|
|FIG|FIG.N|Figma|20250722||0||169|
|FIG|FIG.N|Figma|20250723||0||169|
|FIG|FIG.N|Figma|20250724||0|0|169|
|FIG|FIG.N|Figma|20250725||0|0|169|
|FIG|FIG.N|Figma|20250728||0|0|169|
|FIG|FIG.N|Figma|20250729||0|0|169|
|FIG|FIG.N|Figma|20250730|0.0000|0|0|169|

4. **Risk Factors**:
- Figma's security rating and vendor risk report are not currently available, which could be a concern for some investors.
- The company's IPO is part of a broader trend of private software companies going public, which could indicate a potential shift in market dynamics.

In conclusion, while Figma's strong growth prospects and high investor demand suggest a potentially promising future, the company's current financials and high valuation could be a red flag for some investors. If you are confident in Figma's growth trajectory and can tolerate the higher risk associated with a high P/E ratio, you might consider it a "buy" pre-IPO. However, if you prioritize stable financials and are risk-averse, you might want to wait for the IPO to see how the company performs in the public market before making a decision.