1. Figma shares surged from $33 IPO to $80, $40 billion market cap. 2. High growth expectations leave minimal error margin for Figma. 3. Potential revenue slowdown could halve FIG’s market value to $22 billion. 4. Increased competition from Microsoft and others poses growth risks. 5. Insider share lockup set to expire in 2026 may add selling pressure.
Current high valuation at 37x revenue is unsustainable without continued growth. Historical patterns show similar tech stocks declining swiftly when growth expectations are not met.
The article highlights significant risks and market dynamics affecting Figma's future growth.
Slowing growth and competition could impact Figma's value sustainably. Past tech stocks like Snap exhibited long-term declines due to similar growth fears.