1. Figma's stock surged from $33 to $122 at IPO, raising concerns. 2. Current valuation reflects high expectations, risking stock corrections. 3. Competitive pressures from Microsoft and rising AI tools threaten market share. 4. Figma's enterprise customer base growth remains slow and developing. 5. Insider shares set to flood market in January 2026 pose liquidity risk.
The high expectations set a precarious stage for potential downturns, especially with competitive threats. Historical tech IPOs have faced similar corrections when growth decelerated.
High valuation pressures and emerging competitors can significantly impact FIG's future performance. The timing of insider share sales exacerbates concerns about market stability.
Liquidity risks and competitive threats can impact long-term growth trajectories, specifically if customer base expansion is insufficient. Companies often take years to recover from overvaluation corrections.