Figma's Survival Strategy in the AI Era
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 24 2026
0mins
Should l Buy FIG?
Source: Fool
- Strong Sales Growth: Figma's sales surged by 40% in the last quarter of the year, reaching $303.8 million, indicating sustained demand and customer loyalty despite competitive pressures from AI.
- High Net Dollar Retention: With a net dollar retention rate of 136%, Figma shows that existing customers are increasing their spending, reflecting the strong value of its products and further solidifying its market position.
- Integration of AI Tools: By incorporating AI tools like Figma Make, which allows users to create apps or data dashboards with simple prompts, Figma demonstrates proactive adaptability in technological innovation, enhancing its product competitiveness.
- Overly Punitive Market Reaction: Despite a more than 70% drop in Figma's stock price due to AI fears, the company's solid business performance suggests that investors may be underestimating its long-term growth potential, presenting an intriguing contrarian investment opportunity.
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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: 17.180
Low
38.00
Averages
53.13
High
70.00
Current: 17.180
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.
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- Dual-Class Structure: SpaceX plans to implement a dual-class share structure, with Class A common stock for public investors and Class B super-voting shares for insiders, which grants Musk greater power in corporate governance while limiting the influence of ordinary shareholders.
- Expert Opinions: Governance experts note that tying CEO removal directly to Musk's voting power is uncommon in the industry, as typically, the board retains the authority to remove a CEO, raising concerns about corporate governance practices.
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- Lucid Delivery Issues: Despite securing new funding and a CEO change, Lucid's stock fell to a 52-week low of $6.17, with first-quarter deliveries dropping to 3,093 units, highlighting ongoing supply chain challenges and high production costs negatively impacting performance.
- Figma Faces AI Competition: Figma's stock hit a 52-week low of $16.69 on Friday before recovering to $17.47 at close, as concerns over emerging AI design tools threaten its core workflow, leading to significant investor apprehension.
- Divergent Market Sentiment: On Stocktwits, retail sentiment around SMX is neutral, while Lucid and Figma show extreme bullishness despite significant stock declines, reflecting varying market expectations for future performance.
See More
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- Stock Performance: Figma's stock has plummeted nearly 80% from its peak, currently priced at $19.17 with a market cap of $9.8 billion, indicating market concerns about its future viability.
- Intensifying Competition: The launch of Anthropic's Claude Design poses a direct challenge to Figma, Adobe, and Canva, and while Claude may attract non-professional users, Figma must strengthen ties with professional designers to maintain its market position.
- Strong User Base: As of 2025, Figma boasts over 13 million users, with 95% of Fortune 500 companies utilizing its platform, reflecting its robust market share and user loyalty in the design industry.
- Significant Revenue Growth: Figma's revenue surpassed $1 billion in 2025, marking a 41% year-over-year increase, with international revenue growing by 45%, demonstrating a strong business foundation and growth potential despite competitive pressures.
See More
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- Management Change: Figma announced the immediate resignation of board member Mike Krieger, although the company did not disclose the reason for his departure, it clarified that there were no disagreements with management or policies, which may impact corporate governance.
- Rating Analysis: Investment firm BTIG assigned a “neutral” rating to Figma, reflecting a mixed outlook on the company's future performance, particularly concerning valuation and profitability pathways, despite expectations for revenue growth.
- User Growth: Figma's AI tool, Make, has begun generating revenue from credit consumption and limits, with a 70% increase in weekly average users quarter-on-quarter, yet analysts remain cautious about short-term monetization potential, suggesting other AI stocks may offer greater upside.
See More
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