Just days after one of the most explosive IPOs of 2025, Figma’s stock collapsed by 23% on its second trading day, falling from a high of $122 to around $92.75—eliminating about $11 billion in its market value. This downshift reflects early investors locking in profits rather than a crash in confidence about the business’s long-term potential.
IPO Surge Followed by Swift Pullback
- Figma listed on NYSE at $33 per share on July 31 and rocketed nearly 250% by closing day one, reaching $115.50.
- Shares surged further to $122 before Monday’s slump to $92.75, dropping its market cap to roughly $45.2 billion from a peak of $59.5 billion.
Investor Actions Drive the Sell-Off
Analysts attribute the sharp decline to profit-taking. As Michael Ashley Schulman of Running Point Capital noted, initial excitement was overpowering and early stakeholders cashed in after the IPO frenzy.
What Comes Next for Figma?
- Short-term volatility is expected as early investors reach the end of their lock-up periods.
- Despite the correction, Figma retains strong fundamentals: profitably growing, with high margins and a robust enterprise client base, including Alphabet, Microsoft, Netflix, and Uber.
- CEO Dylan Field still holds over 74% voting power, with shares valued at approximately $5 billion post-IPO.
Key Metrics & Context
- Figma expects 40% year-over-year revenue growth in Q2, a rare trait for tech IPOs today.
- With a forward price-to-sales ratio reaching into the 60s, Figma’s valuation is very high compared to peers—raising debate about IPO pricing discipline.
Market Impact & IPO Sentiment
Figma’s dramatic debut and subsequent pullback mark a pivotal moment in the resurgent IPO market, sparking renewed interest in companies like Canva, Stripe, and Databricks.
Conclusion
The 23% drop on Figma’s second trading day serves as a reminder: blockbuster IPOs often come with steep post-debut corrections. While euphoria fades, Figma’s strong fundamentals and leadership position suggest its long-run narrative remains intact.
📉 Market Snapshot
- Shares fell from $122 to about $92.75 on Monday
- Market cap slashed by $11 billion, down to $45.2 billion
