Figma, Inc. provides a collaborative, browser-based platform for designing, prototyping, and building digital experiences, along with subscriptions for platform access. Its offerings include Figma Design, Dev Mode, FigJam, Figma Slides, Figma Draw, Figma Buzz, Figma Sites, Payload CMS, Figma Make, and Figma Weave. The company was incorporated in 2012 and is headquartered in San Francisco, California.
Figma beats Q2 but AI costs and slowing growth spook investors
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AI inference costs squeeze margins Figma's Q2 results beat estimates, but the cost of running AI features jumped 117% because the company pays for AI computing power on beta products that don't yet earn revenue. This near-term hit to profit margins, plus soft full-year operating income guidance, drove the stock down about 15%.
This is the main new reason FIG fell this period and directly explains the price move.
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Growth is slowing and top executives are leaving Revenue rose 48% to over $370 million, but Q3 guidance implies growth slowing to about 36%. The CEO also announced the chief marketing officer and chief product officer are departing. Slower growth and leadership turnover make investors worry the best days of expansion may be behind it.
Slowing growth guidance and executive departures are new, concrete negatives that push the stock down.
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Lock-up expiration could release millions of shares An upcoming lock-up expiration could let early investors and employees sell millions of Figma shares, adding selling pressure. Combined with the AI cost concerns and slowing growth, this creates a near-term headwind for the stock price.
The lock-up is a new, specific supply risk that can push the share price down.
Q3 2026
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Figma beats Q2 but AI costs and slowing growth spook investors
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AI inference costs squeeze margins Figma's Q2 results beat estimates, but the cost of running AI features jumped 117% because the company pays for AI computing power on beta products that don't yet earn revenue. This near-term hit to profit margins, plus soft full-year operating income guidance, drove the stock down about 15%.
This is the main new reason FIG fell this period and directly explains the price move.
▼
Growth is slowing and top executives are leaving Revenue rose 48% to over $370 million, but Q3 guidance implies growth slowing to about 36%. The CEO also announced the chief marketing officer and chief product officer are departing. Slower growth and leadership turnover make investors worry the best days of expansion may be behind it.
Slowing growth guidance and executive departures are new, concrete negatives that push the stock down.
▼
Lock-up expiration could release millions of shares An upcoming lock-up expiration could let early investors and employees sell millions of Figma shares, adding selling pressure. Combined with the AI cost concerns and slowing growth, this creates a near-term headwind for the stock price.
The lock-up is a new, specific supply risk that can push the share price down.
News & notes movingFIG
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FIG▲
Handshake Launches AI Skills Studio for 30 Million Job Seekers
Handshake announced the rollout of AI Skills Studio, a new app that lets job seekers build practical AI skills through 10 to 45 minute projects using real tools. The company said it partnered with AI companies including OpenAI, Google, Vercel, Figma, Notion, Clay, Lovable, Replit, and Slack by Salesforce to create the projects, which can produce a website, an app, a spreadsheet, or sales outreach sequences. Handshake COO and President Jon Stull said the launch is open to the 30 million students and young professionals on Handshake as well as to anyone worldwide who logs on to handshake.com. Completed projects are shared in an AI showcase and attach to a user's profile, giving a million employers access to them. Stull said Handshake built an AI capabilities framework with employers, content partners, and universities, and will roll it out in more depth next week.
Handshake · Technology · Positive Handshake itself launched AI Skills Studio, a new app for building practical AI skills through real-tool projects.
CRM · Demand · Positive Slack by Salesforce is named as a partner providing real tools for Handshake's AI Skills Studio projects, a minor partnership mention.
FIG · Demand · Positive Figma is named as a partner whose tools are used in Handshake's AI Skills Studio projects.
GOOG · Demand · Positive Google is named as a partner AI company providing tools for Handshake's AI Skills Studio projects.
Clay Labs · Demand · Positive Clay is named as a partner whose tools power AI Skills Studio projects, reaching 30M students and young professionals.
Lovable · Demand · Positive Lovable is named as a partner providing real tools for AI Skills Studio projects, gaining exposure to Handshake's user base.
Cerebras Expands AI Inference Push Against Nvidia and Alphabet
Cerebras Systems is expanding its technology roadmap and customer base to strengthen its position in the AI inference market, targeting coding, agentic AI, security and enterprise workloads as it competes with NVIDIA and Alphabet. Core cloud and other services revenues surged 287% year over year to $127.7 million in the second quarter of 2026. The company expects to double system speed annually over the next several years and increase throughput by more than 20 times over the next 18 months, while its disaggregated inference architecture with AMD combines Cerebras systems with AMD Helios racks to raise throughput by up to five times. Its collaboration with Amazon Web Services is expected to bring disaggregated inference to Amazon Bedrock in the first quarter of 2027, and Cerebras supports OpenAI's GPT-5.6 Sol at a speed that is 10 times faster, with first revenues from other hyperscalers expected around mid-2027. Cerebras signed six deals worth more than $30 million each in the second quarter and added customers such as Cognition, Lovable and Figma in AI coding, while Block, AlphaSense and GSK use its fast inference for agentic workflows and CrowdStrike represents a move into AI-powered cybersecurity. The company has more than 600 MW of data-center capacity live or contracted through the end of 2027, and manufacturing capacity is expected to rise more than tenfold in 2026, supported by secured TSMC wafer supply.
Artificial Intelligence › Agentic AI & Autonomous Workflows ▲Demand
CBRS · Demand · Positive Cerebras signed six deals worth over $30M each and added customers like Cognition, Lovable, Figma, Block, AlphaSense, GSK and CrowdStrike.
CBRS · Technology · Positive Cerebras is expanding its inference roadmap, targeting 20x throughput gains and 5x speedup with AMD Helios racks.
AMD · Demand · Positive Cerebras' disaggregated inference architecture combines its systems with AMD Helios racks, expanding demand for AMD hardware.
AMZN · Demand · Positive AWS collaboration is expected to bring Cerebras disaggregated inference to Amazon Bedrock in Q1 2027.
CRWD · Demand · Positive CrowdStrike represents Cerebras' move into AI-powered cybersecurity, using its fast inference.
FIG · Demand · Positive Figma was added as a Cerebras customer in AI coding.
Adobe Q3 revenue beats estimates on AI demand, Q4 outlook slightly soft
Adobe reported third-quarter results on the 10th, with revenue beating market expectations as demand grew for its products and tools with integrated artificial intelligence. Revenue came in at 6.76 billion dollars, above the 6.7 billion dollars analysts had expected according to LSEG, while adjusted earnings per share were 6.13 dollars, beating the 6.09 dollars forecast. Annual recurring revenue for its AI-first products more than doubled year on year. On the other hand, its fourth-quarter revenue guidance of 6.8 billion to 6.85 billion dollars, with a midpoint of 6.825 billion dollars, came in slightly below the 6.85 billion dollars analysts expected, and the stock fell 1.9 percent in after-hours trading. As rivals such as Figma and Canva expand their services, Adobe faces intensifying competition in the market for AI-powered design tools.
Artificial Intelligence › AI Applications & Copilots ▲Demand
ADBE · Capital · Negative Q4 revenue guidance midpoint of $6.825B came in slightly below the $6.85B analysts expected, sending shares down 1.9% after hours.
ADBE · Demand · Positive Q3 revenue beat estimates as demand grew for Adobe's AI-integrated products, with AI-first ARR more than doubling year on year.
ADBE · Competition · Negative Adobe faces intensifying competition in AI-powered design tools as rivals Figma and Canva expand their services.
FIG · Competition · Neutral Figma is mentioned only as an expanding rival intensifying competition for Adobe, with no Figma-specific development.
Figma Stock Sinks 15% as AI Costs Surge and Growth Slows
Figma shares fell 14.9% on Thursday after the design software company reported second-quarter results that beat estimates but revealed a 117% surge in cost of revenue driven by AI infrastructure expenses. Revenue rose 48% to just above $370 million, topping the $351.5 million consensus, and adjusted earnings of $0.08 per share doubled expectations. However, third-quarter revenue guidance of $373 million to $375 million implies growth slowing to about 36%, and CEO Dylan Field announced the departures of the chief marketing officer and chief product officer. The company noted it is paying to run AI features that are not yet fully monetized, while net dollar retention remained strong at 136% and the number of customers paying at least $10,000 a year grew 34% to 15,964. Rising competition and an upcoming lock-up expiration that could release millions of shares add to near-term headwinds.
Figma CTO Kris Rasmussen sells 261,000 shares for $6.6 million under pre-arranged trading plan
Figma Chief Technology Officer Kris Rasmussen sold approximately 261,000 shares of Figma Inc. at $25.07 per share on July 29, 2026, for a total transaction value of about $6.6 million. The sale was executed under a Rule 10b5-1 trading plan established in August 2025, which allows insiders to schedule sales in advance for personal liquidity needs. Following the transaction, Rasmussen retains roughly 9.5 million shares directly, representing a 0.0008% ownership stake in the company. Figma, which develops collaborative browser-based design software, reported trailing-twelve-month revenue of $1.2 billion and a net loss of $1.5 billion, and its stock has declined 79% over the past year amid broader concerns about artificial intelligence impacting SaaS demand. The company recently announced Rasmussen will transition from Chief Technology Officer to Chief Architect.
FIG · Capital · Negative Insider sale of 261,000 shares under pre-arranged plan, though small relative to holdings, adds supply and may signal insider sentiment.
Software stocks sink as Datadog, Figma, HubSpot plunge over 15%
Software stocks declined sharply on Thursday, led by drops of more than 15% in Datadog, Figma, and HubSpot following their quarterly results. Datadog beat top- and bottom-line estimates but posted an adjusted gross margin of 80%, slightly below the 80.7% consensus. Figma also beat estimates but flagged rising AI inference spending, with its CFO noting the company bears the cost of inference for beta products without offsetting revenue, causing near-term gross margin variability. The iShares Expanded Tech-Software Sector ETF fell more than 2%, and while the sector has rebounded over 35% from its April low, it remains down 3% year to date.
Peloton, Sandisk, AppLovin lead premarket declines while Versant Media and DoorDash gain
Several stocks made significant premarket moves following earnings reports and guidance updates. Peloton Interactive sank nearly 14% after reporting a year-over-year decline in active paying subscribers of 8.8%, despite revenue topping expectations. Moderna rose 4% after the FDA approved its mRNA flu vaccine, mFlusiva, for adults 50 and older. Versant Media jumped 5% after raising its full-year outlook and beating top and bottom lines, now expecting 2026 revenue of $6.2 billion to $6.45 billion and adjusted EBITDA of $1.9 billion to $2.05 billion. Warby Parker shed 7% after second-quarter revenue of $235.5 million missed the LSEG consensus estimate of $238 million, though EBITDA topped expectations and full-year guidance was reaffirmed. IonQ rose 3.9% on better-than-expected second-quarter revenue and full-year revenue guidance of $280 million to $290 million, exceeding the FactSet consensus of $268.6 million. Sandisk slid 10% as first-quarter revenue guidance of $10.3 billion to $10.8 billion appeared to disappoint traders, with the LSEG consensus at $10.47 billion, despite fourth-quarter beats. Figma shed 14% after full-year adjusted operating income guidance of $125 million to $135 million came in soft versus the FactSet consensus of $133.2 million. DoorDash added 4% after quarterly revenue of $4.45 billion beat the LSEG consensus of $4.34 billion. Zillow slid more than 11% after expanding CFO Jeremy Hofmann's role to include COO, while also reporting adjusted EPS of 52 cents beating estimates of 45 cents and revenue of $772 million beating estimates of $758 million, a day after announcing about 500 layoffs. Western Digital slumped more than 15% as current-quarter projections underwhelmed, calling for adjusted earnings of $4 a share on revenue of $4.1 billion, versus consensus of $3.81 a share on $4.04 billion. Salesforce fell almost 5% after naming Miguel Milano as operating chief. Duolingo tumbled 7% after current-quarter revenue guidance of $302 million missed the FactSet consensus of $303.9 million. Bumble fell 5% after posting a second-quarter loss of 84 cents per share versus an expected profit of 25 cents, and issuing third-quarter adjusted EBITDA guidance of $56 million to $60 million below the $68.7 million consensus. AppLovin tanked nearly 20% after third-quarter adjusted EBITDA guidance of $1.71 billion to $1.74 billion missed the StreetAccount consensus of $1.75 billion.
Figma posts 46% revenue growth while IBM misses Q2 expectations
Figma reported first-quarter 2026 revenue of $333.4 million, a 46% year-over-year increase, while IBM disclosed a shortfall in preliminary second-quarter results on July 14, 2026. Figma’s quarterly sales have risen consistently, reaching $303.8 million in the fourth quarter of 2025, and the company forecasts second-quarter 2026 revenue between $348 million and $350 million. IBM recorded second-quarter 2026 revenue of $17.2 billion, missing Wall Street expectations, and its zSystems mainframe sales fell 42% year over year, sending shares to a 52-week low of $199.19 on July 23. Figma’s stock also hit a 52-week low of $16.60 in April amid AI concerns, but its sales trend suggests the business is thriving.
Figma Stock Tumbles 16.5% This Week on AI Disruption Fears
Shares of Figma fell 16.5% this week as investors grow increasingly concerned that artificial intelligence companies will disrupt software stocks. The sell-off comes ahead of Figma's second-quarter earnings report early next month, with the stock trading at a forward price-to-earnings ratio of 158, leaving little room for error. First-quarter revenue rose 46% to $333.4 million and full-year guidance was raised to more than $1.4 billion, but the launch of Anthropic's Claude Design in late April has intensified competitive fears. An incident involving an unreleased OpenAI ChatGPT model hacking a website during a cybersecurity test further underscored the sophistication of AI, even though Figma is not a cybersecurity company. Figma reports its second-quarter results on August 5.
Citi names Palantir, Microsoft, Figma as key AI beneficiaries ahead of Q2 software earnings
Citi has identified Palantir, Microsoft, and Figma as key beneficiaries of enterprise AI spending ahead of second-quarter software earnings. The bank sees improved IT spending during the quarter, with incremental budget dollars flowing disproportionately toward AI infrastructure, cloud platforms, and data modernization projects. Within data infrastructure and AI enablement, Citi prefers MongoDB, Snowflake, and Palantir, while it views Microsoft positively among hyperscalers and AI infrastructure providers, and Figma and Shopify within applications software. Citi maintains Buy ratings on all these companies, with price targets of $455 for MongoDB, $320 for Snowflake, $225 for Palantir, $620 for Microsoft, $36 for Figma, and $156 for Shopify. In contrast, Citi names ZoomInfo and Adobe as its least preferred software names heading into the quarter, citing higher execution risk and a push-out in near-term bookings growth.
Jim Cramer said on Mad Money that he doesn’t really like Adobe, noting the stock rose 3.5% on the day even after a firm downgraded it from Hold to Sell. He highlighted a recent rotation into defensive software names like Salesforce, Adobe, and ServiceNow, but remains cautious on Adobe due to competition from Canva, Figma, Shopify, and AI platforms. Cramer pointed out that Adobe is down 70% from its highs and trades at less than nine times earnings with double-digit earnings growth, yet the stock keeps getting hit. He advised investors to wait until a new CEO and CFO are named before betting on a turnaround.
Figma Stock Lost 29% in June Amid AI Disruption Fears
Figma shares fell 29% in June, driven by ongoing concerns that AI-native software could disrupt its design platform. The decline was part of a broader sell-off in software stocks, with disappointing earnings from Salesforce, Adobe, and Oracle intensifying worries about seat-based SaaS companies losing subscriptions to AI alternatives. The stock stabilized in the second half of the month after Citigroup initiated coverage with a buy rating and a $36 price target, citing strong AI traction including seat upgrades. Figma also held its Config conference, announcing new features like code layering, but the positive analyst commentary that followed provided only limited support. The stock has since rebounded in July, recovering more than half of its June losses.
FIG · Competition · Negative Figma shares fell 29% in June due to AI-native software disruption fears, with seat-based SaaS model under threat.
ADBE · Competition · Negative Mentioned as part of broader software sell-off due to AI disruption fears, with disappointing earnings intensifying concerns.
CRM · Competition · Negative Mentioned as part of broader software sell-off due to AI disruption fears, with disappointing earnings intensifying concerns.
ORCL · Competition · Negative Mentioned as part of broader software sell-off due to AI disruption fears, with disappointing earnings intensifying concerns.
Figma Inc. (FIG) price targets cut by RBC and Wells Fargo after user conference
RBC Capital and Wells Fargo both reduced their price targets for Figma Inc. following the company's 2026 User Conference and Investor Session. RBC's Rishi Jaluria lowered his target from $28 to $22 while maintaining a Sector Perform rating, citing early-stage offerings that make financial impact hard to estimate. Wells Fargo's Michael Turrin cut his target from $42 to $36 but kept an Overweight rating, expressing increased confidence in Figma's design platform strategy. The company also announced new integrations allowing 20 AI image-creation tasks to be used as Weave tools within Figma Design.
Figma Inc. Among AI Stocks Under $30 with High Short Interest
Figma Inc. is among the 10 worst artificial intelligence stocks under $30 according to short sellers. Morgan Stanley lowered its target price on Figma from $44 to $38 on May 15 while keeping an Equal Weight rating, noting a 46% year-over-year revenue increase in the first quarter but citing competitive pressures and margin concerns. Citi initiated coverage with a Buy rating and a $36 target price on June 17, implying over 85% upside potential based on AI momentum. Figma operates a browser-based platform for UI/UX design and product development, offering tools such as Dev Mode and FigJam.
CarMax, AST SpaceMobile, La-Z-Boy lead premarket movers on earnings and satellite launch
Several stocks made notable premarket moves on Wednesday. CarMax rose more than 3.5% after reporting first-quarter earnings of $1.31 per share, well above the 95 cents expected by analysts polled by LSEG. AST SpaceMobile jumped 6% following the successful launch of three new satellites to build its cellular broadband network in space, using SpaceX's Falcon 9 rocket. La-Z-Boy surged 16% after retail sales rose 11% in its fiscal fourth quarter and it delivered an earnings beat. Lionsgate Studios fell more than 5% after Netflix denied reports of acquisition interest, reversing a 14% gain on Tuesday. Semiconductor stocks rebounded from a sell-off, with Intel up more than 3%, Advanced Micro Devices up more than 2.5%, and Broadcom and Qualcomm up more than 1.5%. Figma gained 4% after Citi initiated coverage with a buy rating, citing a $25 billion total addressable market. Oracle slipped 1% after calling a Business Insider report inaccurate that said Microsoft ended a $3 billion cloud infrastructure lease deal over security concerns. Jabil fell more than 2% despite an earnings and revenue beat and above-expectations guidance.
Space Economy › Direct-to-Device (satellite-to-cell) ▲Supply
ASTS · Technology · Positive Successfully launched three new satellites to build its cellular broadband network.
KMX · Capital · Positive Reported Q1 earnings of $1.31 per share, well above the 95 cents expected.
LION · Competition · Negative Netflix denied reports of acquisition interest, reversing a 14% gain.
LZB · Demand · Positive Retail sales rose 11% in fiscal Q4 and delivered an earnings beat.
ORCL · Capital · Negative Called a Business Insider report inaccurate that said Microsoft ended a $3 billion cloud infrastructure lease deal over security concerns.
ORCL · Demand · Negative Business Insider report (called inaccurate) said Microsoft ended a $3 billion cloud infrastructure lease deal over security concerns.
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