Figma stock exploded onto Wall Street Thursday with a jaw-dropping 250% gain, pricing at $33 but opening at $85 before surging to $115.50 by the close. Investors piled in, betting big on the design software unicorn as it rode the tailwinds of a booming tech market.
Wall Street Greets Figma With Open Arms
It’s been a while since an IPO lit up the board quite like this. Figma’s debut on the New York Stock Exchange became one of the biggest pops of the year—and maybe the decade. The stock opened nearly 158% above its IPO price and didn’t stop climbing. By the end of the session, Figma was up a stunning 250%.
You could almost feel the heat. Trading volumes hit over 64 million shares, and retail brokers reported delays due to order demand. The stock touched an intraday high of $124.63 before settling near $115. That’s not hype—that’s a $60 billion valuation in just a few hours.
The IPO drop was timed perfectly. Markets are at all-time highs, tech optimism is back, and big names like Nvidia have reignited investor appetite for growth names. Figma entered that storm with a tailwind, not a headwind.
Adobe’s $20 Billion Rejection Now Looks Like a Bargain
Adobe tried to buy Figma back in 2022. Remember that? The price tag was $20 billion. Regulators weren’t having it. They blocked the deal on antitrust grounds, saying it would weaken competition in design software.
Now? That failed acquisition might be Figma’s best endorsement. It was like the market suddenly remembered: “Hey, didn’t Adobe—one of the biggest software giants—try to buy these guys for way more than what they’re asking now?”
So yeah, pricing the IPO at a market cap well below Adobe’s offer looked like a gift. For institutional buyers who got in at $33, it’s been a payday most traders only dream about.
And don’t forget: when regulators fear a merger that much, it means both companies are real threats to each other.
The Numbers Back Up the Buzz
IPO hype is one thing. But Figma’s financials are something else.
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Revenue for the past 12 months came in at $821 million—up 46% year-over-year.
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Gross margins? 91%.
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Operating margin on a GAAP basis? 17%.
Those aren’t your typical early-stage SaaS numbers. Most IPO-bound software companies are bleeding cash. Figma, meanwhile, is showing healthy profitability and doesn’t need to burn through billions to grow.
It also has serious enterprise adoption: 78% of Forbes 2000 companies already use Figma in some form. That’s deep penetration for a company barely out of start-up mode. And the total addressable market? Estimated at $33 billion—and climbing as digital collaboration tools become the norm.
But at a 70x Price-to-Sales Ratio, Can This Hold?
Here’s the part where the brakes squeak.
At its closing price, Figma is trading at a roughly 70x price-to-sales ratio. For comparison, Adobe’s is closer to 11x. That’s a massive gap. And even in a bullish tech cycle, investors have limits—eventually.
Yes, high-growth names often command steep premiums. But 70x? That leaves almost no room for missteps. One missed quarter, one slowdown in customer acquisition, and sentiment could flip fast.
So while bulls are cheering, some voices on Wall Street are already saying: this might be overdone.
Figma’s Product Is Its Secret Weapon
What makes Figma different is the product itself. It’s not just another cloud software firm; it’s reimagined how designers work.
It runs entirely in the browser, supports real-time multi-user editing, and doesn’t require clunky downloads. It’s Google Docs meets Photoshop.
Figma was ahead of its time. When the pandemic hit and teams went remote, demand skyrocketed. Now, even post-COVID, that demand hasn’t faded. Teams continue to prefer collaborative, cloud-first tools—and Figma fits that need perfectly.
Also worth noting: developers like it. Designers love it. And product teams rely on it. That kind of cross-functional stickiness is hard to build and even harder to replace.
Is It a Buy Now? That’s a Tough Call
New IPOs are always messy. The first few quarters are usually full of noise—share lockups expire, insiders sell, and analysts try to figure out what valuation makes sense.
So what now?
Figma is clearly a strong business. But at $115 a share, investors are already pricing in years of success. That doesn’t leave much cushion for volatility. Here’s what many pros are watching:
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Earnings reports: Can Figma keep that growth and margin combo going?
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Market sentiment: Will the tech rally hold up into Q4?
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Competition: Will Adobe retaliate with its own improved tools?
Some investors are willing to bet that Figma can become the next Salesforce or Atlassian. Others are holding off, waiting for a dip. One hedge fund manager even said, “It’s a fantastic company. But I’m not paying 70x sales for anything, no matter how good it is.”
