Should You Hold on to Figma Despite the Stock's 32% One-Month Decline?

Figma FIG shares have plunged 31.6% in the past month, underperforming the Zacks Computer and Technology sector’s return of 3.3% and the Zacks Internet Software industry’s decline of 7.7%. The company’s shares have also underperformed its peers, including Autodesk ADSK and Adobe ADBE, which are expanding their presence in the creative software market. Both Autodesk and Adobe shares have lost 2% and 0.7%, respectively, in the past month.The underperformance can be attributed to the company’s investments in AI-powered products like Figma Make, which led to higher costs to serve these products, which impacted gross margin.FIG Stock's PerformanceImage Source: Zacks Investment ResearchHowever, the company is benefiting from a robust portfolio and an expanding clientele. As of Sept. 30, 2025, the company had 12,910 paid customers with more than $10,000 in annual recurring revenues (ARR) and 1,262 paid customers with more than $100,000 in ARR.FIGMA Benefits From Expanding PortfolioFigma’s expanding portfolio has been a major growth driver. The launch of Figma Make, an AI-powered tool that allows users to create prototypes and web apps using text prompts, has been noteworthy. Approximately 30% of customers spending $100,000 or more in ARR were using Figma Make weekly by the end of September.In the third quarter of 2025, Figma’s net dollar retention for paid customers with more than $10,000 in ARR increased to 131%, up 2 percentage points sequentially. This growth was driven by faster customer adoption of new products and platform features. The company also launched more than 50 new features across the Figma platform in the third quarter of 2025. This includes AI-driven tools like Copy Design, remote Figma MCP Server, and Make Kits, enhancing AI-native design and product development workflows for users.Acquisitions have also played an important role in further expanding FIGMA’s portfolio. In the third quarter of 2025, Figma announced that it had acquired Weavy, a platform that combines generative AI and professional editing tools on an open canvas. This acquisition will improve Figma’s capabilities in image, video, animation, motion design and VFX creation and editing.FIGMA Benefits From Expanding ClienteleFigma’s expanding clientele has been noteworthy. In the third quarter of 2025, FIG’s customer base grew significantly, with the company adding more than 90,000 paid teams in just two quarters, bringing the total to 540,000 paid customers. This growth was driven by the adoption of new products like Figma Make and AI features, which attracted new users and expanded usage within existing teams. FIG’s increase in multiyear deals has been noteworthy. In the third quarter of 2025, Figma reported a 27% quarter-over-quarter rise in customers signing multiyear agreements, highlighting its growing role as the system of record for design and product development.Further expanding its clientele in the third quarter of 2025, Figma announced a partnership with OpenAI to launch the Figma App for ChatGPT. This app allows users to create diagrams, flow charts, and Gantt charts in FigJam directly from their conversations with ChatGPT. Users can edit, save and share their creations easily within Figma.FIGMA’s Earnings Estimates Show Upward TrendFIGMA’s robust portfolio and expanding clientele are expected to drive the company’s top-line growth.The Zacks Consensus Estimate for 2025 earnings is currently pegged at 33 cents per share, which has increased 3 cents over the past 30 days. This indicates a 108.80% year-over-year increase.For 2025, FIG expects revenues between $1.044 billion and $1.046 billion. This suggests 40% year-over-year growth at the midpoint of the range. The Zacks Consensus Estimate for FIG’s 2025 revenues is pegged at $1.04 billion, suggesting growth of 39.50% year over year.For the fourth quarter of 2025, FIG expects revenues between $292 million and $294 million. This suggests 35% year-over-year growth at the midpoint of the range.Figma, Inc. Price and Consensus Figma, Inc. price-consensus-chart | Figma, Inc. QuoteFigma Suffers From Stiff CompetitionDespite an innovative portfolio and expanding clientele, Figma is facing stiff competition from companies like Adobe, Autodesk, Atlassian TEAM, which are expanding their AI-driven revenue base.Atlassian’s focus on adding generative AI features to some of its collaboration software is likely to drive the top line. Atlassian has collaborated with OpenAI to enhance the capabilities of its Confluence, Jira Service Management, and other programs with generative AI features. The company is also offering generative AI-enabled features under the Atlassian Intelligence brand, which is designed to help employees be more efficient while users remain in control of data.FIG Stock Is Trading at a PremiumFigma shares are also overvalued, as suggested by a Value Score of F.In terms of forward 12-month Price/Sales, Figma currently trades at 14.61X.FIG ValuationImage Source: Zacks Investment ResearchConclusionFigma’s innovative portfolio and increased customer engagement have been noteworthy. In the third quarter of 2025, about 70% of customers used three or more products, highlighting the platform’s ability to integrate seamlessly into diverse workflows. However, Figma’s modest growth prospects and a stretched valuation make the stock risky for investors. The company’s investments in AI-powered products are also expected to hurt margin expansion in the near term. Stiff competition has been a headwind.Figma currently has a Zacks Rank #3 (Hold), which implies investors should wait for a more favorable point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Figma, Inc. (FIG): Free Stock Analysis Report Autodesk, Inc. (ADSK): Free Stock Analysis Report Adobe Inc. (ADBE): Free Stock Analysis Report Atlassian Corporation PLC (TEAM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks