Figma's 5% Plunge and 337th Volume Rank Reflect Turbulence as Earnings Outperform and India Expansion Gains Momentum

Market Snapshot

Figma (FIG) closed on November 14, 2025, with a 5.00% decline, marking its worst single-day performance in recent weeks. The stock’s trading volume totaled $0.34 billion, a 21.44% drop from the previous day, and ranked 337th in volume among U.S. equities. The decline came as the stock approached its 52-week low of $40.02, reflecting a broader downward trend that has seen FIG fall approximately 65% over the past six months.

Key Drivers

Insider Selling and Market Sentiment
A significant factor influencing Figma’s recent volatility was the sale of 43,357 shares by Chief Accounting Officer Herb Tyler under a Rule 10b5-1 trading plan. The transaction, executed at an average price of $43.93, generated $1.9 million and occurred amid a period of heightened investor uncertainty. Tyler’s sale followed the exercise of 26,059 stock options at $23.19, further highlighting mixed signals from insiders. While the company maintains strong financial metrics—84.8% gross profit margins and a cash-positive balance sheet—such insider activity often amplifies short-term selling pressure, particularly in a stock already trading near its 52-week low.

Third-Quarter Earnings Outperformance and Analyst Optimism
Despite the recent price drop, Figma’s third-quarter fiscal 2025 results provided a counterpoint to the bearish narrative. The company reported earnings per share of $0.10, far exceeding the expected loss of $1.58, and revenue of $274.2 million, surpassing the $263.9 million forecast. These results, coupled with a 150-basis-point outperformance in gross margin, prompted Goldman Sachs to raise its price target to $54 while maintaining a Neutral rating. The earnings report underscored Figma’s progress toward profitability, with results due on December 4, adding a layer of near-term event risk that could sway investor sentiment.

India Expansion and AI-Driven Product Strategy
Figma’s strategic push into India’s design ecosystem has emerged as a critical growth lever. The company inaugurated a Bengaluru office, positioning India as its second-largest market after the U.S., with 85% of its user activity originating outside the U.S. Over 40% of India’s top 100 publicly traded companies now use Figma’s tools, including Airtel, Swiggy, and Zomato. The firm’s AI-powered tools, such as Figma Make and Weavy (rebranded as Figma Weave), are designed to streamline product development across design, code, and media. A YouGov survey revealed 93% of Indian designers use AI tools, aligning with Figma’s focus on integrating AI into its platform to capture a broader segment of the tech workflow.

Global Exposure and Revenue Diversification
While Figma’s international expansion is a positive catalyst, its heavy reliance on non-U.S. markets introduces macroeconomic risks. Approximately 85% of the company’s users and a majority of its 2024 revenue came from outside the U.S., exposing it to potential headwinds if global clients face tightening capital budgets amid rising tariffs. This dynamic contrasts with its strong domestic earnings performance, creating a duality in its risk-reward profile. The recent insider sales and stock price decline suggest that investors may be factoring in these international uncertainties, even as the company’s product roadmap and market share gains in India offer long-term optimism.

Broader Market Context
Figma’s stock trajectory reflects a broader pattern of volatility among tech companies navigating a transition from speculative growth to earnings-driven valuation. The firm’s IPO in July 2025, which briefly valued it at $70 billion, has since given way to a correction to $22 billion, mirroring sector-wide trends. The combination of strong quarterly results, strategic AI integration, and geographic diversification positions Figma to benefit from a potential market rotation toward earnings-positive tech stocks. However, the recent insider sales and trading volume trends indicate lingering skepticism among shareholders, particularly as the company approaches key inflection points like its December earnings release.

Conclusion
Figma’s recent performance is shaped by a mix of bearish and bullish factors. Insider selling and a prolonged price decline have fueled short-term pessimism, while robust earnings, strategic AI advancements, and India’s expanding market presence offer a counterbalance. Investors will likely weigh these dynamics as the company’s December earnings report and broader macroeconomic trends determine whether Figma can regain momentum in a challenging market environment.