FIG

Despite reporting a 41% revenue increase to $249.6 million in Q2 2025, the company's stock price dropped after the earnings release. This was due to the high valuation pressure and the fact that the company's revenue did not meet the expectations of some investors.

The expiration of the lock-up period for certain employees led to the potential release of a large number of shares, which could have increased the supply of shares available in the market. This, in turn, could have put downward pressure on the stock price.

Figma's stock was trading at a high valuation, with a price-to-earnings ratio of nearly 40, which made it vulnerable to negative sentiment. The market may have been expecting blowout quarters consistently, but merely great quarters were not enough to satisfy investors.

The CEO's comments about making large AI investments may have unsettled some investors, leading to a drop in the stock price.