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Figma (FIG) Doesn’t Have The Moat That It Thinks, Says Jim Cramer

We recently published 12 Stocks on Jim Cramer’s Radar.  Figma, Inc. (NYSE:FIG) is one of the stocks on Jim Cramer’s radar.

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:

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“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. . .”

While we acknowledge the risk and potential of FIG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FIG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. Follow Insider Monkey on Google News.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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