Jim Cramer Says Figma (FIG)’s P/E Multiple Means You Better “Blow Out The Quarter,” After Shares Dipped By 19%

We recently published 11 Stocks Jim Cramer Discussed As He Said Apple’s CEO Is A “Pawn”. Figma, Inc. (NYSE:FIG) is one of the stocks Jim Cramer recently discussed.

Figma, Inc. (NYSE:FIG) is a software company that allows users to use a web browser-based platform to design AI products and services. It is one of the newest listings on the market, and the shares have lost 53% since their listing at July end. Soon after the IPO, Figma, Inc. (NYSE:FIG)’s shares tanked by 35% as investors sought to lock in their gains. More recently, the stock fell by 19.9% in September after the firm’s first post-IPO earnings report saw meek revenue, EPS, and full-year revenue beats. Cramer agrees that Figma, Inc. (NYSE:FIG) had a lot to prove:

“[On first report since IPO not well received] Figna by the way. . .when you’re at 180 times earnings you better blow out the quarter. And they did not, they did a little bit less.”

Jim Cramer Says Figma (FIG)'s P/E Multiple Means You Better "Blow Out The Quarter," After Shares Dipped By 19%

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Here are his previous thoughts about Figma, Inc. (NYSE:FIG) on the day the shares started to trade:

“It is expensive at 33 versus where Adobe tried to buy it.

“[On how they’ve got a lot of selling shareholders] Right, and I think that in itself is usually a red flag. They expect to bring 360 million from the deal but roughly two-thirds are going to existing shareholders. Which I find is a really large cash out.

“Netflix uses it, Duolingo uses it, Uber uses it, JetBlu, 95% of the Fortune 500 use it. And, if you have a subscription to Adobe it’s much more expensive than Figma. Figna’s a very good buy. This is Figma versus Adobe just so everyone knows.

“And I urge people to, if you put in market orders, it’s gonna be like two thousands, you will be crushed. Please put in a limit order. Don’t worry if you don’t get it. This is one where I want people to exercise caution.”

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. This article is originally published at Insider Monkey.