Figma’s $1.63B Surge and 19.9% Plunge: 37th-Ranked Stock Navigates Post-IPO Volatility

On September 4, 2025, Figma (FIG) saw a trading volume of $1.63 billion, a 104.82% increase from the previous day, ranking 37th in market activity. The stock closed down 19.92%, marking a significant decline following its post-IPO debut.

The drop came after Figma released its first quarterly earnings report as a public company. While the firm reported adjusted earnings of $0.09 per share and revenue of $249.6 million—both aligning with estimates—its guidance for slower growth raised concerns. The company projected 33% revenue growth for the current quarter and 37% for the full year, down from prior growth rates. Analysts noted that these figures likely fell short of institutional investor expectations despite meeting consensus estimates.

Four Wall Street firms, including BofA and Morgan Stanley, cut price targets for Figma stock, reflecting cautious sentiment. The CEO highlighted investments in AI and a 129% net dollar retention rate as strengths, but the market reacted negatively to the tempered outlook. Figma’s stock, which had surged 250% post-IPO, has now retreated over 52% from its peak, trading at a price-to-sales ratio of 29. Analysts suggest the sell-off may partly reflect overreaction, though the stock remains vulnerable to volatility given its limited free float.

Backtesting results indicate that Figma’s post-IPO trajectory has been marked by sharp swings. The stock’s current valuation, while reduced from its peak, still reflects elevated expectations. Investors are advised to monitor the firm’s ability to execute on new product launches, including AI-driven tools, and maintain profitability amid evolving market dynamics.