ARK Invest Increases Figma Stake and Reduces DraftKings Holdings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Should l Buy FIG?
Source: Yahoo Finance
- Portfolio Reshuffle: On February 19, ARK Invest added approximately $24 million in Figma shares following the company's fourth-quarter fiscal 2025 results, indicating strong confidence in Figma's growth potential.
- Strong Earnings Report: Figma reported earnings per share of $0.08 and revenue of $303.8 million, both exceeding market expectations, leading to a stock price increase of over 6% post-earnings, reflecting investor optimism about future performance.
- Positive Future Guidance: The company guided fiscal 2026 revenue between $1.366 billion and $1.374 billion, surpassing market forecasts, with management asserting that demand for software remains robust despite ongoing debates around generative AI, indicating sustained market interest.
- AI Tool Innovation: Figma plans to introduce usage-based pricing and monthly AI credit limits starting in March, leveraging AI models from Alphabet to convert text prompts into app prototypes, thereby enhancing its product competitiveness and market appeal.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy FIG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on FIG
Wall Street analysts forecast FIG stock price to rise
9 Analyst Rating
3 Buy
6 Hold
0 Sell
Moderate Buy
Current: 30.480
Low
38.00
Averages
53.13
High
70.00
Current: 30.480
Low
38.00
Averages
53.13
High
70.00
About FIG
Figma, Inc. designs and develops platforms for people who build digital products together. The Company helps cross-functional teams align and build software more efficiently and ensure the advanced access and controls that large organizations require. Its products include Figma Design, Dev Mode, Figma Sites, Figma Make, Figma Draw, Figma Buzz, FigJam and Figma Slides. Figma Sites is a product that lets clients design a Website and directly publish it to the Web, with a custom URL. Figma Make is an AI-powered tool that turns a prompt into a fully functional prototype. Figma Buzz is a product for easily creating marketing assets (like social media assets and digital ads) at a scale that is consistent with brand or visual identity. Figma Draw provides a space for finer vector editing required when drawing detailed iconography and product illustrations. Figma Design combines powerful features with a collaborative workspace to help teams design and build better products together.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Opportunities Amid Market Volatility
- Figma's Price Decline: Figma's stock has fallen from its IPO price of $33 to $28.94, representing a 79% drop from its 52-week high of $143, although its unexpected 40% revenue growth in Q4 raises questions about future growth prospects.
- Trade Desk's Challenges: The Trade Desk reported a mere 14% revenue growth in its latest quarter, marking its weakest performance since the pandemic, and is undergoing executive turnover; however, the CEO's recent $150 million stock purchase indicates confidence in the company's future.
- Duolingo's User Growth: Despite Duolingo's stock plummeting over 80% from last year's peak, its monthly active users have increased by 30% to 52.3 million, with 77% on free ad-supported accounts, demonstrating the platform's stickiness and appeal.
- Market Rebound Potential: Despite overall market volatility, Figma, Trade Desk, and Duolingo are trading at less than 14 times projected earnings, suggesting potential investment opportunities for patient investors willing to sift through the market's retreat.
See More
Insiders Take Action to Purchase These 3 Declining Stocks
Insider Buying Trends: Amid falling stock prices, several key stocks are showing bullish signals through significant insider buying, including a leading financial services company and a creative design disruptor, with insiders purchasing approximately $40 million worth of shares in 2026.
KKR's Market Position: KKR & Co., a major alternative asset management firm controlling over $700 billion in assets, has seen its stock decline more than 35% from its all-time high, raising concerns about potential disruptions from artificial intelligence affecting its investments.
Figma's Stock Performance: Figma, a digital design company, experienced a significant stock surge upon its IPO but has since faced a steep decline, trading below its initial price, while insiders have been actively buying shares, indicating potential bullish sentiment.
Redditt's Revenue Growth: Redditt has generated rapid revenue growth of 68% to 78% over the last three quarters, despite facing significant insider selling in 2026, with insiders also purchasing shares recently, suggesting confidence in the company's future performance.
See More
Burry Suggests Apple Acquire Anthropic Amid AI Competition
- Acquisition Proposal: Investor Michael Burry suggests that Apple should acquire AI startup Anthropic, citing its cultural fit and imminent cash flow positivity, which could help Apple close the gap with its competitors in the AI sector.
- AI Investment Pressure: Adobe's revenue growth has stagnated, leading analysts to believe its efforts in AI are insufficient to compete with rivals like Canva and Figma, prompting Burry to recommend that Adobe acquire AI image generation platform Midjourney to enhance its creative capabilities.
- Financial Position: As of the end of December, Apple held over $45 billion in cash, indicating its acquisition potential, while Adobe reported $5.4 billion in cash and cash equivalents by the end of November, suggesting it also has the capacity for strategic acquisitions.
- Market Reaction: Despite Apple's stock rising 10.7% over the past year, Adobe's shares have fallen 36.2%, reflecting differing market expectations regarding the two companies' performances in AI, and Burry's comments may further influence investor sentiment.
See More
Figma Stock Rises 13%: Key Drivers and Outlook
- Stock Recovery: Figma's stock rose 13% in February, although it remains down 77% since its IPO, indicating a gradual restoration of market confidence in its growth prospects.
- Strong User Growth: Weekly active users are growing at an astonishing 70% quarter-over-quarter, reflecting rapid adoption of Figma's products in the enterprise market, which has driven a 40% year-over-year revenue increase to $303 million.
- Market Position Strengthened: By simplifying real-time collaboration in digital design, Figma has successfully disrupted Adobe's dominance in the sector, attracting nearly 14,000 customers paying over $10,000 annually, demonstrating broad acceptance in the enterprise market.
- Cautious Future Outlook: Despite Figma's guidance for $1.37 billion in revenue this fiscal year, resulting in a forward price-to-sales ratio of 11, it is still considered relatively expensive, with expected operating earnings just over $100 million and a pre-tax earnings multiple of 150, suggesting limited future stock market returns.
See More
Figma Partners with Claude to Enhance Design Capabilities
- Stock Volatility: Figma's stock has plummeted approximately 80% from its 52-week high of $142.92, currently trading at $29.38 with a market cap of $15 billion, reflecting market concerns about its long-term growth potential.
- Collaborative Opportunity: The partnership with AI chatbot Claude introduces the 'Code to Canvas' feature, enabling users to easily convert code into modifiable designs, aimed at enhancing user experience and strengthening its competitive edge in the design sector.
- Financial Performance: Figma's recent quarterly report revealed revenue of $303.8 million for the last three months of 2025, marking a 40% year-over-year growth, indicating robust growth potential despite the looming AI threat.
- Market Confidence: Despite bearish sentiment towards software companies, Figma's stock has risen 22% over the past month, as investors express optimism regarding its collaboration with Anthropic and a projected 38% revenue growth for the current quarter.
See More
Software Sector Faces Disruption Risks
- Disruption Indicators: In a recent podcast, analysts discussed historical disruption cases, highlighting that persistently declining gross margins and customer attrition are key signs of companies facing disruption, which is crucial for investor decision-making.
- Salesforce's Challenges: Salesforce is projected to generate approximately $41 billion in revenue for 2026, yet its annualized AI agent business is only $1.4 billion, and sluggish growth places it at risk of disruption, especially in an increasingly competitive market.
- Market Reaction: While the S&P 500 and NASDAQ saw slight gains last week, the software-as-a-service (SaaS) sector experienced sharp sell-offs, intensifying investor concerns about potential disruptions and reflecting market uncertainty about the industry's future.
- Investor Mindset: Analysts emphasized the importance of maintaining courage amid fear, asserting that investors must possess the ability to act against market trends to navigate volatility and seize potential investment opportunities.
See More
Investment Opportunities Amid Market Volatility
- Figma's Price Decline: Figma's stock has fallen from its IPO price of $33 to $28.94, representing a 79% drop from its 52-week high of $143, although its unexpected 40% revenue growth in Q4 raises questions about future growth prospects.
- Trade Desk's Challenges: The Trade Desk reported a mere 14% revenue growth in its latest quarter, marking its weakest performance since the pandemic, and is undergoing executive turnover; however, the CEO's recent $150 million stock purchase indicates confidence in the company's future.
- Duolingo's User Growth: Despite Duolingo's stock plummeting over 80% from last year's peak, its monthly active users have increased by 30% to 52.3 million, with 77% on free ad-supported accounts, demonstrating the platform's stickiness and appeal.
- Market Rebound Potential: Despite overall market volatility, Figma, Trade Desk, and Duolingo are trading at less than 14 times projected earnings, suggesting potential investment opportunities for patient investors willing to sift through the market's retreat.
See More
Insiders Take Action to Purchase These 3 Declining Stocks
Insider Buying Trends: Amid falling stock prices, several key stocks are showing bullish signals through significant insider buying, including a leading financial services company and a creative design disruptor, with insiders purchasing approximately $40 million worth of shares in 2026.
KKR's Market Position: KKR & Co., a major alternative asset management firm controlling over $700 billion in assets, has seen its stock decline more than 35% from its all-time high, raising concerns about potential disruptions from artificial intelligence affecting its investments.
Figma's Stock Performance: Figma, a digital design company, experienced a significant stock surge upon its IPO but has since faced a steep decline, trading below its initial price, while insiders have been actively buying shares, indicating potential bullish sentiment.
Redditt's Revenue Growth: Redditt has generated rapid revenue growth of 68% to 78% over the last three quarters, despite facing significant insider selling in 2026, with insiders also purchasing shares recently, suggesting confidence in the company's future performance.
See More
Burry Suggests Apple Acquire Anthropic Amid AI Competition
- Acquisition Proposal: Investor Michael Burry suggests that Apple should acquire AI startup Anthropic, citing its cultural fit and imminent cash flow positivity, which could help Apple close the gap with its competitors in the AI sector.
- AI Investment Pressure: Adobe's revenue growth has stagnated, leading analysts to believe its efforts in AI are insufficient to compete with rivals like Canva and Figma, prompting Burry to recommend that Adobe acquire AI image generation platform Midjourney to enhance its creative capabilities.
- Financial Position: As of the end of December, Apple held over $45 billion in cash, indicating its acquisition potential, while Adobe reported $5.4 billion in cash and cash equivalents by the end of November, suggesting it also has the capacity for strategic acquisitions.
- Market Reaction: Despite Apple's stock rising 10.7% over the past year, Adobe's shares have fallen 36.2%, reflecting differing market expectations regarding the two companies' performances in AI, and Burry's comments may further influence investor sentiment.
See More
Figma Stock Rises 13%: Key Drivers and Outlook
- Stock Recovery: Figma's stock rose 13% in February, although it remains down 77% since its IPO, indicating a gradual restoration of market confidence in its growth prospects.
- Strong User Growth: Weekly active users are growing at an astonishing 70% quarter-over-quarter, reflecting rapid adoption of Figma's products in the enterprise market, which has driven a 40% year-over-year revenue increase to $303 million.
- Market Position Strengthened: By simplifying real-time collaboration in digital design, Figma has successfully disrupted Adobe's dominance in the sector, attracting nearly 14,000 customers paying over $10,000 annually, demonstrating broad acceptance in the enterprise market.
- Cautious Future Outlook: Despite Figma's guidance for $1.37 billion in revenue this fiscal year, resulting in a forward price-to-sales ratio of 11, it is still considered relatively expensive, with expected operating earnings just over $100 million and a pre-tax earnings multiple of 150, suggesting limited future stock market returns.
See More
Figma Partners with Claude to Enhance Design Capabilities
- Stock Volatility: Figma's stock has plummeted approximately 80% from its 52-week high of $142.92, currently trading at $29.38 with a market cap of $15 billion, reflecting market concerns about its long-term growth potential.
- Collaborative Opportunity: The partnership with AI chatbot Claude introduces the 'Code to Canvas' feature, enabling users to easily convert code into modifiable designs, aimed at enhancing user experience and strengthening its competitive edge in the design sector.
- Financial Performance: Figma's recent quarterly report revealed revenue of $303.8 million for the last three months of 2025, marking a 40% year-over-year growth, indicating robust growth potential despite the looming AI threat.
- Market Confidence: Despite bearish sentiment towards software companies, Figma's stock has risen 22% over the past month, as investors express optimism regarding its collaboration with Anthropic and a projected 38% revenue growth for the current quarter.
See More
Software Sector Faces Disruption Risks
- Disruption Indicators: In a recent podcast, analysts discussed historical disruption cases, highlighting that persistently declining gross margins and customer attrition are key signs of companies facing disruption, which is crucial for investor decision-making.
- Salesforce's Challenges: Salesforce is projected to generate approximately $41 billion in revenue for 2026, yet its annualized AI agent business is only $1.4 billion, and sluggish growth places it at risk of disruption, especially in an increasingly competitive market.
- Market Reaction: While the S&P 500 and NASDAQ saw slight gains last week, the software-as-a-service (SaaS) sector experienced sharp sell-offs, intensifying investor concerns about potential disruptions and reflecting market uncertainty about the industry's future.
- Investor Mindset: Analysts emphasized the importance of maintaining courage amid fear, asserting that investors must possess the ability to act against market trends to navigate volatility and seize potential investment opportunities.
See More
