Figma valued at over $19 bln in IPO, tech stocks rise on decent earnings reports.

• NYSE: Figma valued over $19 billion in IPO • Raises $1.2 billion, priced 37 million shares at $33 each • Figma provides browser-based design software • Shoulder Innovations priced 5 million shares at $15 each • NYSE: Equities catch bid after tech earnings reports • Microsoft and Meta report decent earnings • Apple and Amazon report earnings after market close

Figma, a leading cloud-based design software provider, successfully completed its initial public offering (IPO) on the New York Stock Exchange (NYSE) on July 2, 2025. The company raised $1.2 billion by pricing 37 million shares at $33 each, surpassing the initial range of $25 to $28 [1]. This event marks a significant milestone in the venture-backed IPO market, signaling a potential recovery after a prolonged period of subdued activity.

Figma's IPO valuation of $19.3 billion reflects strong investor confidence in the company's standalone potential and market position. The company reported $749 million in revenue in 2025, up 48% from a year earlier, and has 13 million monthly active users and over 11,100 customers generating more than $10,000 in annual recurring revenue [2]. In the first quarter of 2025, Figma noted 91% gross margins and 18% operating margins.

The IPO comes more than a year and a half after Figma's planned $20 billion merger with Adobe Systems (ADBE) collapsed. Despite this setback, Figma's IPO valuation underscores its strategic value and market influence. According to an emerging technology analyst at PitchBook, Figma's performance stands out among recent high-growth software IPOs, thanks to its 50% year-over-year revenue growth and profitability in the first quarter of 2025 [1].

The successful IPO of Figma is being seen as a potential bellwether for the broader market, especially for other high-growth SaaS and AI companies. The number of IPOs this year has increased by 45% compared to the same period in 2024, suggesting a cautious but discerning investor appetite [1]. Figma's IPO reflects a broader trend of selective but growing investor interest in venture-backed technology companies with compelling growth narratives.

Meanwhile, Adobe stock has retreated 15% in 2025, despite posting a modest beat-and-raise report for its fiscal second quarter ended May 30. Adobe earned an adjusted $5.06 a share, up 13% year over year, on sales of $5.87 billion, up 11% [2]. The maker of digital media and marketing software posted a net income of $5.06 a share, up 13% year over year, on sales of $5.87 billion, up 11% [2].

References:
[1] https://www.investors.com/news/technology/figma-ipo-figma-stock-fig-stock-adobe-stock/
[2] https://www.ainvest.com/news/figma-ipo-raises-1-2-billion-exceeds-price-range-signals-market-recovery-2507/