Figma’s stock has lost 83% from the peak it hit just after the design software company went public last July, and the pressure returned again on April 17 when Anthropic launched Claude Design. Shares of Figma, which trades under the ticker FIG, fell 7% that day as investors once again looked past the company’s growth and toward what artificial intelligence could do to its business.
The move comes only weeks before Figma is due to report first-quarter earnings on May 14, a date that now carries extra weight for a company that has not even been publicly traded for a year. The stock has not been falling because of weak results. Figma has continued to post strong growth while investing in the business, and it has beaten revenue estimates in all three of its quarters as a public company.
Still, the market has treated the stock as a different kind of bet. The first round of weakness was driven by valuation concerns, then by a sharper fear that enterprise software could be disrupted by AI-native products. Figma has tried to get ahead of that shift by launching its own AI-enabled tools and making acquisitions, but the shares remain far below their debut-era peak. At a trailing price-to-sales ratio of 10, the stock is still expensive by many software standards, even after the selloff.
That backdrop matters because Figma is not heading into earnings with the kind of slowdown that usually explains a punishing selloff. The company guided to 38% growth in the first quarter and 30% growth for the full year, which implies growth of 27% across the remaining three quarters. Those are still brisk numbers, and they help explain why the debate around figma stock has become less about whether the company is growing and more about whether investors believe that growth can survive the AI wave that is moving through software.
The broader sector has offered some relief lately. The iShares Expanded Tech-Software ETF is up more than 20% from its bottom a month ago, suggesting that some of the fear around software valuations has eased. But Figma has not participated in that recovery the way many peers have, and the gap between its operating performance and its share price remains wide. The company’s next report will not settle the bigger question, but it will give investors a fresh read on whether the market has been too pessimistic, or not nearly pessimistic enough.
