Is FIG a good stock to buy? We came across a bullish thesis on Figma, Inc. on ARMR Report Be The Smart Money’s Substack by Bret Rosenthal. In this article, we will summarize the bulls’ thesis on FIG. Figma, Inc.’s share was trading at $25.50 as of May 29th. FIG’s forward P/E was 92.59 according to Yahoo Finance.
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Figma, Inc. develops and sells a collaborative, browser-based platform for designing, prototyping, building digital experiences, and subscriptions for access to its platform. FIG is positioned as a leading platform for digital product creation and is increasingly viewed as the operating system for modern software development.
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The bullish thesis argues that the rapid adoption of artificial intelligence is not diminishing Figma’s relevance but instead strengthening its strategic importance. As AI lowers the cost and complexity of writing code, the bottleneck in software development shifts toward designing, defining, and coordinating what products should be built.
Figma sits directly at this critical point, serving as the central hub where designers, product managers, and engineers collaborate. Operating through a product-led growth model, the company monetizes via subscription offerings and has become the single source of truth for design systems, product workflows, and front-end development. Despite a broader software sector rerating, the company’s underlying growth engine remains intact, creating what bulls view as an attractive entry point.
Figma is expanding beyond traditional design software through initiatives such as Dev Mode, which aims to capture engineering budgets, native AI-powered design generation tools, and FigJam, which extends its reach into collaboration, planning, and strategy workflows. The company’s value proposition is reinforced by measurable enterprise productivity gains, as centralized design systems can eliminate costly inefficiencies across large engineering teams and generate substantial returns on investment.
Its competitive moat is supported by strong network effects through the Figma Community and exceptionally high switching costs, as enterprises embed proprietary design systems deeply into their operations. While risks include slower software spending and emerging AI-generated application development tools, bulls believe Figma remains the primary beneficiary of the AI-driven software boom.
Trading at roughly 10x sales, the company is viewed as a category leader with asymmetric upside, with proponents arguing that the stock’s downside is largely reflected in its valuation while long-term gains could be driven by expanding adoption, AI monetization, and sustained enterprise penetration.
Previously, we covered a bullish thesis on Adobe Inc. (ADBE) by jackandjillonthehill in May 2025, which highlighted Adobe’s dominant high-margin software ecosystem, strong free cash flow generation, disciplined buybacks, and AI integration through Firefly within its creative suite. ADBE’s stock price has depreciated by approximately 30.87% since our coverage. Bret Rosenthal shares a similar view but emphasizes FIG’s role as the central OS for digital product creation, where AI shifts bottlenecks toward design.
Figma, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held FIG at the end of the first quarter which was 51 in the previous quarter. 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.
Disclosure: None.
