Last week’s red hot IPO for Figma sees some air come out

Published 04/08/2025, 15:50
© Reuters

Investing.com -- Last week’s blockbuster IPO for Figma Inc (NYSE:FIG) is sharply lower in early trading on Monday as traders lock in profits from the recent surge.

As of 10:40 AM ET, the stock is down 19.8% to $97.74.

On Thursday, the design software company’s IPO opened at $85 after pricing at $33. It then continued higher to close at $116.30, up 252.4% for its debut session.  The stock then added another 5.6% on Friday, closing the week at $122.

Despite today’s downside, one analyst has been uber-bullish on the IPO.

DA Davidson analyst Gil Luria sees Figma as a standout software IPO with the potential to reignite the broader tech IPO market. According to Luria, Figma meets key investor criteria, including strong growth, solid profitability, and innovative technology. With public market activity limited in recent years, and investor interest shifting toward unconventional names like Coreweave and Circle, Figma’s debut could signal a return of high-quality software companies to the IPO pipeline over the next year or so, he said.

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