Figma Inc. (FIG) is One of the AI Names Under $30, Carrying High Short Interest

Figma Inc. (NYSE:FIG) is one of the 10 worst artificial intelligence stocks under $30 according to short sellers.

Back on May 15, Morgan Stanley reduced the target price on Figma Inc. (NYSE:FIG) from $44 to $38 while retaining an Equal Weight rating on the stock. The firm informed investors that paid customer conversion, seat expansion, and new credit monetization during the first quarter drove a second consecutive quarter of revenue growth, up 46% YoY.

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Morgan Stanley highlighted that the first quarter’s numbers offered a solid case for Figma’s standing in Artificial Intelligence, despite the ongoing investor discussions about growing competition across design tools and its potential effect on gross margins. However, it pointed out that potential gains for the stock may be limited in the foreseeable future amid persistent worries about the competitive landscape and short-term margin pressures.

Later on June 17, Citi assigned a Buy rating to Figma Inc. (NYSE:FIG), along with a target price of $36. This leads to an upside potential of more than 85%. The firm reflected on broader consensus views, which indicate that the company’s ongoing AI momentum is expected to yield substantial upside potential.

Figma Inc. (NYSE:FIG) operates a browser-based platform that helps teams build products through UI/UX design. It covers multiple stages of product development, including idea generation, prototyping, and design systems. It also offers various other tools such as Dev Mode, FigJam, Figma Slides, Figma Buzz, Figma Draw, and more.

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.

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