Stock market today: S&P 500 extends monthly win streak despite Nvidia-led stumble
Investing.com - Shares of Figma rose in premarket trading on Friday, following a blockbuster debut from the design software maker in the prior session.
By 06:17 ET (10:17 GMT), the stock had risen by more than 12%. On Thursday, it climbed by over 252% to finish at $115.50.
Figma’s initial public offering was 40 times oversubscribed, echoing the massive success of recent flotations from Coreweave and Circle. The company priced 36,937,080 shares of Class A common stock, raising $1.22 billion.
Leading the offering were Morgan Stanley (NYSE:MS), Goldman Sachs & Co (NYSE:GS). LLC, Allen & Company LLC, and J.P. Morgan.
Figma reported 2024 total revenue of $749 million, up 48% from the prior year.
“Expect us to take big swings when we see a chance to invest in our platform or pursue M&A at scale," Figma co-founder Dylan Field said in a letter in the company’s prospectus. "That means at times we will make decisions that may not seem immediately rational. And, while we always strive to exercise good judgement, sometimes we will make the wrong calls. If you decide to invest in Figma, we hope you will take a long-term view and stay patient—there is so much to build, and we will bias towards long-term compounding (measured in decades) over quarterly share price appreciation.”
DA Davidson analyst Gil Luria called Figma “the software IPO we’ve been waiting for.”
“We believe Figma is an ideal IPO candidate to lead the way for additional software IPOs over the next 12–18 months,” Luria said. “The company checks the boxes in terms of growth, profitability, and technology. Investors have been starved of new entrants into public markets in recent years as indicated by the success of oddball stocks like Coreweave and Circle.”