Figma exploded onto the public market last week, and the numbers are jaw-dropping. Priced at $33 per share, Figma opened strong at $85, soared to $124.63, and finally closed at $115.50. That is a 250% gain in one trading day. No recent IPO has touched that kind of leap.
The San Francisco-based company raised $1.22 billion by selling 36.94 million shares, making it the largest IPO of the year so far. But what really shook the market was its final valuation, $67.6 billion, more than triple Adobe’s failed $20 billion acquisition offer from 2023.
Big players love it. Over 75% of Forbes 2000 companies use Figma’s tools to build, collaborate, and design in real-time.
Figma is also riding high on the AI wave. Its latest products, Figma Make and Figma Sites, use artificial intelligence to speed up design work and automate the boring stuff. That kind of innovation is what investors are chasing right now.
The excitement spilled into the next day. On August 1, shares rose 5.6%, hitting $122. But it didn’t last. By August 4, the stock had dropped 23% thanks to heavy profit-taking, slicing off $11 billion in market value. As of August 7, it closed at $78.24, down 13.37% from the day before.
Why Figma’s IPO Still Matters
Despite the dip, this IPO is a big deal. Figma’s success gave the IPO market a shot of energy after a quiet start to 2025. Other tech debuts like Circle (168% first-day gain) and CoreWeave (190% post-debut rise) also performed well, but Figma’s 250% opening pop set the bar.
The company’s strong fundamentals, loyal user base, and rapid product growth are the real story.
Can it really hold onto a $67 billion tag? That is bigger than many legacy software firms. Even with solid growth, keeping that valuation will take serious execution.
Insider activity is adding to the skepticism. CEO Dylan Field sold 2.35 million shares during the IPO. That move raised eyebrows. Sure, founders cashing out is normal, but it also signals that they are locking in gains while the price is hot.
AI and Adobe Aren’t Going Away
Figma may be leading now, but it doesn’t live in a vacuum. Adobe still dominates the creative software world and has deep pockets. Even after the failed acquisition, Adobe could ramp up its competing tools or offer discounts to keep users inside its ecosystem.
Plus, there is also pressure from AI-native design startups. They move fast, they experiment freely, and they are hungry. If one of them cracks a better way to build in-browser or generates full designs using AI, it could shift the balance quickly.
Figma’s current price is still more than double the IPO offer, even with the pullback. But the real test will come in early 2026 when insider lock-ups expire. That’s when employees and early investors can finally sell their shares. If many of them jump ship at once, the stock could see another sharp drop.
These sell-offs are common with big IPOs, but they are especially risky when the stock has already seen huge early gains. Investors will be watching that date closely.
