Can Figma's (FIG) AI Investments Counterbalance Slower Revenue Growth and Shifting Insider Dynamics?

• Figma recently released its first earnings report as a public company, revealing second-quarter revenue growth of 41% alongside guidance for a deceleration in sales growth and the expiration of insider lockups.
• The company also unveiled several new AI-driven products and completed acquisitions, while clarifying that its increased bitcoin holdings remain a small part of its overall treasury strategy.
• We'll explore how Figma's cautious guidance on future revenue growth sharpens questions about the company's growth trajectory going forward.

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What Is Figma's Investment Narrative?

For anyone considering Figma as a long-term holding, the big-picture appeal rests on the belief that Figma’s design platform can deliver sustained, above-industry revenue growth through constant innovation and deeper enterprise traction, despite an expensive valuation and signs of slowing momentum. The recent earnings shock, marked by a sharp share price drop, guidance for decelerating sales growth, and early insider selling pressure, has reset the near-term conversation. Investors now face an altered risk and catalyst profile: new AI-driven products and deals could still drive interest, but the weaker guidance, insider lockup expirations, and a high price-to-sales ratio have intensified focus on whether the business model can maintain its strong top-line expansion. While Figma's treasury moves and product launches are steps in the right direction, these recent developments have made short-term volatility and the path to premium multiples more uncertain than before. On the flip side, the threat of increased share supply from expiring lockups is now a key risk to monitor.

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Exploring Other Perspectives

Simply Wall St Community members now estimate Figma’s fair value from just US$6.33 up to an unusually high US$434.36, reflecting 22 vastly contrasting views. While some expect significant upside, the latest caution over growth rates and insider sales adds new weight to market skepticism about Figma’s valuation. Consider exploring other opinions before making up your mind.

Explore 22 other fair value estimates on Figma - why the stock might be worth less than half the current price!

Build Your Own Figma Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Figma research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Figma research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Figma's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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