Figma Shares Plummet Amid SaaS Sector Concerns
Figma (Nasdaq: FIG) experienced a 31% decline in share price last month, driven by sector-wide fears regarding the impact of AI on software-as-a-service (SaaS) companies. This downturn was exacerbated by disappointing earnings reports from major SaaS players such as Microsoft, ServiceNow, and SAP, leading to a loss of investor confidence.
The stock continues to trade at 12 times sales, representing a decline of over 33% from its IPO price six months ago and an 85% drop from its peak shortly after going public. Analysts project Figma will report fourth-quarter revenue of $293.2 million and adjusted earnings per share of $0.06 on February 18.
