Figma Faces Severe Stock Decline Amid Broader Software Sector Sell-Off
Figma Inc. (NYSE: FIG) experienced a significant drop on February 15, 2023, falling 9.4% to near all-time lows. This downturn is part of a broader sell-off in the software sector, driven by disappointing earnings reports from leaders like ServiceNow, Microsoft, and SAP, all falling double-digits.
ServiceNow reported a 21% subscription revenue growth for the fourth quarter but still faced declines as managing commentary failed to alleviate long-term concerns about competition from AI. Meanwhile, SAP’s weaker-than-expected guidance further fueled investor anxiety within the sector. Figma, down 80% from its post-IPO peak, has yet to report its fourth-quarter earnings, scheduled for February 18, with analysts expecting revenue of $293.2 million and adjusted earnings per share of $0.06.
