Figma Stock Decline Analysis Amid AI Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: NASDAQ.COM
- Stock Decline Trend: Figma's stock fell 31% last month, now down over a third from its IPO price, reflecting market fears that AI could disrupt software products, particularly in the design software sector.
- Analyst Ratings Remain Positive: Despite the stock pressure, most Wall Street analysts maintain a bullish outlook on Figma, with Wells Fargo upgrading it to overweight, asserting that its leadership in product design and efficient growth warrant a premium.
- Industry Pressure Impact: The decline in Figma's stock is linked to earnings reports from SaaS leaders like Microsoft, ServiceNow, and SAP, where despite meeting expectations, concerns over future guidance heightened market anxiety.
- Future Earnings Expectations: Figma is set to report its fourth-quarter earnings on February 18, with analysts expecting revenue of $293.2 million and adjusted earnings per share of $0.06, indicating ongoing market interest in its future performance.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSFT is 631.36 USD with a low forecast of 500.00 USD and a high forecast of 678.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 393.670
Low
500.00
Averages
631.36
High
678.00
Current: 393.670
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
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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- New Investment in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, suggesting he sees potential in Apple's AI capabilities, particularly its vast iPhone sales network and upcoming AI-powered smart glasses.
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- Capital Expenditure Forecast: Amazon's projected capital expenditures for 2026 are set at $200 billion, a significant increase from $132 billion in 2025; although this raised market concerns, CEO Andy Jassy emphasized that most of the spending will address high demand for AWS services.
- AWS Growth Momentum: AWS experienced a 24% year-over-year revenue increase in Q4, reaching an annualized revenue run rate of $142 billion, with a backlog of $244 billion, reflecting robust growth in the cloud services market and a 40% increase in backlog year-over-year.
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- New Position in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, signaling confidence in Apple's AI potential, particularly its vast iPhone user base and upcoming AI-powered smart glasses.
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- Earnings Drive: The continuous growth of corporate earnings among Dow components is a critical factor driving stock prices upward, and if this trend persists, the index is expected to keep rising, reflecting strong economic fundamentals.
- Macroeconomic Factors: While macroeconomic indicators such as inflation, interest rates, and GDP growth can impact the market, there are currently no signs of dramatic negative swings in these metrics, maintaining an optimistic market sentiment.
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