Consider the query: Should Figma Shares Be Invested at $78?
Microsoft's recent announcement of embedding design capabilities into Office 365 [1] has increased competitive pressures for Figma, a design platform valued at over $38 billion [2]. Figma's stock, trading under NYSE:FIG, made a strong market debut, surging more than 3x its issue price on its first trading day, and has continued to rally since.
Figma's valuation, now at approximately $19.3 billion [2], is close to Adobe's previously proposed $20 billion acquisition price before the deal collapsed in 2023 [1]. Despite this high valuation, the market's continued buying interest suggests that it is not presently viewed as excessively optimistic by investors.
The revenue growth of Figma is impressive, with a $228.2 million quarterly revenue, up 46% year-over-year [2]. The company is repositioning itself as a broader collaboration hub, expanding into presentations, no-code web development, and cross-functional project tools [2].
However, Figma's enterprise footprint is still developing, with only 1,031 customers generating more than $100,000 in annual revenue [2]. The company's Net Dollar Retention is 132%, placing it in the top quartile of SaaS companies [2].
Figma's net income last quarter was $44.9 million [2]. For 2024, the company's adjusted operating margins stood at 17% and free cash flow margins at 24% [2].
Canva, a rival design platform, is pushing further upmarket, posing a challenge to Figma's position [2]. Figma aims to turn the generative AI wave into a catalyst for growth rather than a competitive threat [2].
AI-native tools from players such as OpenAI could reshape workflows in both design and coding, potentially impacting Figma [3]. The long-term investment case for Figma hinges on its ability to broaden adoption beyond its core design audience [2].
The stock's post-IPO lock-up expires in January 2026, potentially leading to a large number of shares entering the market and potentially creating fresh pressure on the stock price [2].
Investors should consider comparing revenue growth, profitability, and market positioning metrics relative to Adobe and Snowflake, as direct valuation comparison should consider business models and sector dynamics [1]. The Trefis Reinforced Value (RV) Portfolio has outperformed its all-cap stocks benchmark, providing strong returns for investors [4].
References: [1] TechCrunch. (2023, March 21). Adobe reportedly called off its $20 billion acquisition of Figma. https://techcrunch.com/2023/03/21/adobe-reportedly-called-off-its-20-billion-acquisition-of-figma/
[2] Business Wire. (2025, July 30). Figma Announces Pricing of Initial Public Offering. https://www.businesswire.com/news/home/20250730005329/en/Figma-Announces-Pricing-of-Initial-Public-Offering
[3] VentureBeat. (2023, November 15). Microsoft to embed design capabilities into Office 365, taking on Figma. https://venturebeat.com/2023/11/15/microsoft-to-embed-design-capabilities-into-office-365-taking-on-figma/
[4] Trefis. (2025, August 15). Trefis Reinforced Value (RV) Portfolio. https://www.trefis.com/portfolio/rv-portfolio
Figma's valuation, which is now around $19.3 billion [2], is still close to Adobe's previously proposed $20 billion acquisition price before the deal fell through in 2023 [1]. As Figma's stock (NYSE:FIG) is traded on the stock market, finance and investing opportunities exist for those interested in technology companies, particularly ones that are breaking new grounds in design, such as Figma.
