Figma, Inc. (FIG) Down 8.7% — Do I Clear This From My Holdings?
Key Points
Figma, Inc. (FIG) extended its recent slide in the latest session, retreating 8.72% to close at $33.23, a loss of $3.17 from the prior close. The stock is clearly under pressure, giving up ground rapidly and edging closer to the bottom of its 52-week range at $32.83. From its 52-week high of $142.92 reached on Aug. 1, 2025, shares have now lost more than three-quarters of their value, underscoring a steep and persistent downtrend that has left the stock far removed from earlier peaks. At current levels, FIG is trading near its lows rather than consolidating, reinforcing the impression of ongoing downside momentum rather than stability.
Trading activity also pointed to heightened selling pressure. Volume came in at 9.6 million shares, running above the 90-day average of roughly 8.7 million. That pickup in activity on a down day indicates investors are more active on the sell side as the stock continues to lose ground. Within the high-growth software and cloud security cohort, several peers such as CrowdStrike (CRWD), Snowflake (SNOW), and Cloudflare (NET) have also experienced bouts of volatility, but Figma’s sharp retreat from its 52-week high stands out as particularly severe. With the price sliding and sitting so close to its annual low, the technical picture for FIG currently reflects a stock under sustained pressure rather than one staging a meaningful recovery.
Why Figma, Inc. Price is Moving Lower
Figma, Inc. shares are under pressure as recent trading has been driven more by sentiment and positioning than by fresh company-specific catalysts. The stock has swung in a relatively tight band over the past week, but the drift toward the lower end of that range, alongside heavier volume on down days such as Jan. 12, points to ongoing selling pressure. With the stock hovering closer to its 52-week low than its recent highs and delivering a slightly negative 12‑month performance despite pockets of short-term strength, investors appear to be using modest rallies as exit points rather than building new positions. In a stable broader software backdrop, that pattern typically reflects growing concerns about valuation, profitability, or execution rather than sector-wide stress.
Fundamentally, the key headwind remains the company’s loss-making profile. An EPS of -$2.39, even against robust revenue expansion — 38% year-over-year growth and roughly 9.8% quarter-over-quarter — raises concerns over the path to sustainable earnings and free cash flow at Figma’s current scale. In today’s higher-rate environment, the market is less forgiving of high-growth names that have yet to demonstrate operating leverage, particularly with a market capitalization above $18 billion. That caution is amplified by comparison with other high-growth software names such as CrowdStrike, Snowflake, and Cloudflare, all of which face similar scrutiny over profitability and valuation. Without a clear, near-term catalyst to shift the narrative toward improving margins or stronger cash generation, the stock remains vulnerable to further downside as investors reassess risk across the design and cloud software complex.
What is the Figma, Inc. Rating - Should I Sell?
Weiss Ratings assigns Figma, Inc. (FIG) a E rating. The stock was downgraded on 11/10/2025, and the current recommendation is Sell. This is a very low overall assessment, indicating that, on a risk-adjusted basis, the stock has offered a poor trade-off between potential reward and the risks shareholders are taking.
Despite reporting revenue growth of 38.03%, FIG carries a Weak Growth Index and a Very Weak Total Return Index. In other words, rapid top-line expansion has not translated into attractive, risk-adjusted gains for investors. The Weak Efficiency Index further signals that management has struggled to convert growth into sustainable profitability or strong returns on capital. The negative forward P/E ratio of -15.23 reinforces concerns about ongoing losses and the lack of near-term earnings support for the stock.
On the risk side, FIG’s Excellent Solvency Index shows a solid balance sheet and good capacity to meet its obligations. However, that strength has not been enough to offset concerns captured in the Weak Volatility Index and Very Weak Total Return Index. Shareholders have been exposed to downside risk without commensurate upside, which is a key driver behind an E (Sell) rating rather than just a neutral stance.
Within information technology, FIG is positioned even weaker than several already underperforming peers such as CrowdStrike Holdings, Inc. (CRWD, D), Snowflake Inc. (SNOW, D-), and Cloudflare, Inc. (NET, D-). When a stock ranks below other names that themselves carry Sell-oriented ratings, it signals that caution is warranted and that other options may offer a more balanced risk/reward profile.
About Figma, Inc.
Figma, Inc. is an Information Technology company operating within the Software and Services industry, focused on browser-based user interface design and collaboration tools. Founded in 2012 and headquartered in San Francisco, California, the company delivers a cloud-native platform that centralizes design workflows for digital product teams. Its core offering, Figma Design, targets UI and UX professionals who need to ideate, prototype, and maintain design systems in a shared environment. Despite its strong brand recognition among designers, the business is heavily concentrated in a single category—collaborative design software—leaving it exposed to shifts in design tooling standards, competitive pricing pressure, and enterprise software consolidation.
Beyond Figma Design, the company has layered on multiple adjacent tools that keep users within its ecosystem but also increase complexity. Dev Mode is positioned to bridge designers and developers by allowing code inspection directly from design files, yet this workflow remains vulnerable to competing developer-centric platforms. FigJam, a virtual whiteboarding tool, and Figma Slides, a presentation product, both target already crowded collaboration markets dominated by large, entrenched software vendors. Additional offerings such as Figma Draw, Figma Buzz for brand asset creation, Figma Sites for web experiences, and Figma Make, an AI-driven prototyping tool, further broaden the product surface area. This expanding suite may enhance stickiness for existing customers, but it also raises execution risk, dilutes focus, and intensifies the need for continuous innovation in a segment where rivals can replicate features quickly and leverage larger distribution channels.
Investor Outlook
With Figma, Inc. (FIG) carrying an E (Sell) Weiss Rating, investors may want to exercise caution and closely monitor whether recent trading stabilizes or breaks below nearby support levels, which could signal further downside risk. Also watch how broader Information Technology sentiment and company-specific execution trends evolve, as meaningful, sustained improvement across these areas would be needed to shift the unfavorable risk/reward profile implied by the current rating. See full rankings of all E-rated Information Technology stocks inside the Weiss Stock Screener.
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