Figma's Stock Declines Amid Google's AI Product Launch
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 19 2026
0mins
Should l Buy GOOGL?
Source: CNBC
- Stock Decline: Figma's stock has dropped over 11% in the past two days, with an 8% decline on Wednesday followed by a 3% drop on Thursday, reflecting market concerns about AI threats, leading to a total decline of approximately 35% this year.
- Google Product Launch: Google introduced an AI design product called Stitch, which allows users to generate designs by entering prompts and provides real-time design critiques; although currently in beta and free, its potential impact has triggered Figma's stock decline.
- Increased Market Competition: Google's Stitch product could reshape the design workflow, and if launched to paying customers in the future, it would further solidify Google's dominance in the product design space, putting Figma under greater market pressure.
- Expanded Partnership: Google Cloud and Figma announced an expanded partnership in October, integrating more generative AI technology into Figma's platform; however, Figma still faces significant competition from Google's robust offerings.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 274.340
Low
305.00
Averages
374.25
High
400.00
Current: 274.340
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
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.
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See More
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- Market Context: The stability of Microsoft's stock amidst broader tech weakness reflects market concerns about its ability to convert future AI revenues, even as analysts note it is not currently among the top investment picks.
See More
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- Increased Trading Volume: The trading volume reached 41 million shares, nearly 16% above the three-month average, indicating strong institutional demand and reflecting market expectations for Microsoft's future growth.
- Impact of AI Investments: The expansion of AI tools across Microsoft 365 and other enterprise products may limit near-term earnings growth, but long-term demand support could stabilize revenue growth for the company.
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