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Figma (NYSE: FIG) has seen its stock price plummet by 55% from its post-IPO high after a recent earnings report. The stock was initially priced at $33 at its IPO on July 31, and opened at $85, but dropped 26% this week as of 10:39 ET on Friday.
Despite reporting a 41% year-over-year revenue increase and being profitable, Figma’s outlook for Q3 suggests a slowed growth rate of 33%. The company is currently trading at approximately 185 times earnings estimates and over 25 times price-to-sales ratio based on this year’s revenue, raising concerns about its high valuation in the software sector.
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