12 Stocks on Jim Cramer’s Radar

2. Figma, Inc. (NYSE:FIG)

Number of Hedge Fund Holdings: 38

Figma, Inc. (NYSE:FIG) is a technology company that provides a web-based platform to allow users to design and build websites, applications, and other digital experiences. RBC Capital discussed the firm on February 19th. It cut Figma, Inc. (NYSE:FIG)’s share price target to $31 from $38 and kept a Sector Perform rating. The firm remarked that while the technology company had posted solid fourth-quarter earnings, it was waiting for a more attractive entry point since the current valuation adequately represented Figma, Inc. (NYSE:FIG)’s strengths in the industry. Morgan Stanley also cut the price target on the 19th. It reduced the target to $44 from $48 and kept an Equal Weight rating. The bank remarked that while Figma, Inc. (NYSE:FIG)’s revenue growth was impressive, it was marred by the impact of operating margins on free cash flow. As for Cramer, he recalled when he had warned against buying the shares:

“I did get a little enthusiastic, stock was around 120 went up another 20 bucks, now down 90% from when I made that call. . .I think that Figna is a company that does not have nearly the moat that they think. . .Any company that, they claim to be a platform that allows you be a genius, you can, just put it this way, there’s so many of these. There’s nothing special about Figma. I like them but when it was a 140, no, and the stock was up two this morning, I read the conference call I said, this should go down, there’s nothing here. And, it had a reversal. And I just, you can go on, you can go on, any one of these sites and do what they want. I go on Claude and you can develop a terrific package. . .”