Figma's Post-IPO Slide 13.37% Drop 79th in Liquidity as Market Doubts $44B Valuation

On August 7, 2025, Figma (FIG) declined 13.37% to $78.24, with a trading volume of 14.0 million shares, ranking 79th in market liquidity. This follows a volatile debut in its initial public offering (IPO) on August 1, where shares surged over 200% to a $59 billion market cap before retracting to $44 billion. The stock’s recent pullback reflects broader market skepticism toward high-valuation tech names, despite its strong revenue growth and strategic AI integration.

Figma’s IPO, initially valued between $13.6 billion and $16.5 billion, capitalized on its position as a leading design and coding platform. The company reported 41% year-over-year revenue growth in Q2 2025 and achieved profitability in late 2024. Its AI-driven tools, including Dev Mode for code conversion and First Draft for interface prototyping, have positioned it as a key player in the $1 billion annual revenue target. The firm also serves 95% of Fortune 500 companies, with management targeting expansion in AI-driven design workflows for the 1 billion new applications projected by 2028.

Despite these fundamentals, Figma’s valuation remains contentious. At $44 billion, the stock trades at over 44 times 2025 revenue, raising concerns about sustainability. CEO Dylan Field has emphasized the company’s proprietary design engine as a barrier to AI replacement, though analysts note the evolving risks from generative AI competitors. The stock’s sharp post-IPO correction suggests investors are recalibrating expectations amid macroeconomic uncertainty and sector-wide volatility.

A backtest of a strategy purchasing top 500 high-volume stocks daily and holding for one day generated a 166.71% return from 2022 to 2025, outperforming the benchmark by 137.53%. This highlights liquidity concentration as a key driver in short-term performance, particularly in volatile markets where high-volume equities like Figma may exhibit pronounced price swings. The results underscore the interplay between market structure and investor behavior in shaping stock trajectories.