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Figma's Stock Drops 23% After IPO Pop, Valuation Falls to $56 Billion
ByAinvest
Monday, Aug 4, 2025 1:01 pm ET1min read
Figma's stock price has dropped 23% to $94.50, cutting into the gains made after its IPO last week. The design software company sold about 37 million shares at $33 per share, yielding around $412 million in proceeds. Figma expects a 40% increase in Q2 revenue and has a fully diluted valuation of approximately $56 billion. CEO Dylan Field owns over $5 billion worth of stock despite the recent decline.
Figma's stock price has experienced a significant decline, falling 23% to $94.50, despite the company's strong performance and high demand following its IPO last week. The design software company sold approximately 37 million shares at $33 per share, generating around $412 million in proceeds [1].Figma's IPO was marked by a 255% surge in stock price, reaching $124.63 at its peak, with the stock closing at $85 a share [2]. Despite the initial success, the stock has since retreated, highlighting the challenges faced by the company and its investors. Figma's CEO, Dylan Field, owns over $5 billion worth of stock, indicating his belief in the company's long-term potential.
The company expects a 40% increase in Q2 revenue and has a fully diluted valuation of approximately $56 billion. However, the stock's recent decline has cut into the gains made post-IPO, raising concerns about the company's valuation and potential risks.
Figma faces several challenges that could impact its stock price. The company's high price-to-sales ratio of 69 is significantly higher than that of other publicly-traded software companies, such as Microsoft's P/S of 14.1 and Datadog's 17.8 [1]. Additionally, the company's growth could slow down if it fails to offer AI features that make its platform more compelling to customers than rival offerings.
The stock's recent decline may present an opportunity for investors to enter the market at a lower valuation. However, it is crucial to monitor the company's performance and consider the potential risks before making any investment decisions.
References:
[1] https://www.forbes.com/sites/petercohan/2025/08/01/figma-stock-soars-255-post-ipo-despite-bitcoin-why-to-avoid-fig-now/
[2] https://www.businessinsider.com/who-got-rich-on-figma-ipo-2025-7
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