Figma, Inc. (NYSE:FIG) is a website and mobile application design products and services provider. It is one of the weakest-performing stocks on the market as the shares are down by 68% over the past year and by 32% year-to-date. On the 6th, the day that Cramer discussed the stock, Figma, Inc. (NYSE:FIG) closed a whopping 14.9% lower. The dip came after Figma, Inc. (NYSE:FIG) had reported its second quarter earnings after market close on the 5th. The CNBC TV host didn’t believe the post-earnings reaction was completely justified:
“Okay so Figma’s another one. I looked it over. It wasn’t that great, it wasn’t that bad, and people decided to just trash it. They just trashed it.”
Figma, Inc. (NYSE:FIG)’s earnings were a mixed bag of results. The firm’s $370 million revenue, which marked a 48% growth, beat analyst estimates of $351 million. Figma, Inc. (NYSE:FIG) also bumped its full year revenue guidance to $1.463 billion and $1.467 billion from the earlier $1.422 billion to $1.428 billion. Yet, at the same time, the software company had to launch an artificial intelligence agent to fuel its revenue growth. The launch pushed its research and development costs to $167 million for a strong 101% annual jump. Additionally, Figma, Inc. (NYSE:FIG)’s operating margin also dropped to 10% from 16%. However, on a non-GAAP basis, the R&D jump was a milder 34%.
On the bearish front, Figma, Inc. (NYSE:FIG) might be prone to a slowdown which often rings the death knell in software valuation. The firm’s third quarter revenue guide ranged between $373 million to $375 million and implied a modest growth of roughly 1% at the midpoint sequentially and 36% annually. Additionally, Figma, Inc. (NYSE:FIG) might also experience increased competition should AI enable competitors to create similar products.
Hedge fund sentiment in the firm appears to be static. During Q4 2025 and Q1 2026, 51 hedge funds part of Insider Monkey’s database had held a stake in Figma, Inc. (NYSE:FIG). As for valuation, the firm is very richly valued compared to its peers. Its forward P/E ratio of 87.72 is significantly higher than Adobe’s 9.95, while short interest as a percentage of float of 30% is also nearly six times Adobe’s 5.45%.
While Insider Monkey acknowledges 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 have limited downside risk. If you are looking for an AI stock that is more promising than FIG that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
