Findell Capital Urges Figma to Focus on Product and Cost Rationalization
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 38 minutes ago
0mins
Source: PRnewswire
- Product Focus Recommendation: Findell Capital suggests that Figma streamline its product portfolio by concentrating on core offerings like Design, Dev Mode, FigJam, and Make, which would enable better utilization of engineering and product resources, thereby enhancing market competitiveness and accelerating product development speed.
- Cost Rationalization: With R&D spending projected to exceed 30% of revenues in 2026, Findell believes this figure should be significantly reduced to align with industry norms for SaaS companies, ultimately improving profit margins.
- Board Governance Review: Findell expresses concerns regarding the dynamics of Figma's board, particularly in relation to its ties with competitor Anthropic, urging an independent investigation to assess any potential improper use of Figma's confidential information.
- Market Misunderstanding and Value Unlocking: Findell asserts that Figma is a generational company that is currently misunderstood by the market, and improving margins and governance will help unlock additional value while enabling the market to better recognize its potential as a high-quality asset.
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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: 21.340
Low
38.00
Averages
53.13
High
70.00
Current: 21.340
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.
Findell Capital Urges Figma to Focus on Product and Cost Rationalization
- Product Focus Recommendation: Findell Capital suggests that Figma streamline its product portfolio by concentrating on core offerings like Design, Dev Mode, FigJam, and Make, which would enable better utilization of engineering and product resources, thereby enhancing market competitiveness and accelerating product development speed.
- Cost Rationalization: With R&D spending projected to exceed 30% of revenues in 2026, Findell believes this figure should be significantly reduced to align with industry norms for SaaS companies, ultimately improving profit margins.
- Board Governance Review: Findell expresses concerns regarding the dynamics of Figma's board, particularly in relation to its ties with competitor Anthropic, urging an independent investigation to assess any potential improper use of Figma's confidential information.
- Market Misunderstanding and Value Unlocking: Findell asserts that Figma is a generational company that is currently misunderstood by the market, and improving margins and governance will help unlock additional value while enabling the market to better recognize its potential as a high-quality asset.
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- Strong Earnings Performance: Figma's first-quarter earnings report released last week showed robust revenue growth, alleviating market concerns about its AI monetization capabilities, with shares rising nearly 12% since the report, indicating a rebound in investor confidence.
- Enterprise Customer Upgrades: Many enterprise customers willingly upgraded to premium AI-related offerings after hitting usage limits tied to the company's 'Figma Make' features, demonstrating strong demand for generative design capabilities and further solidifying Figma's position in the industry.
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Findell Capital Urges Figma to Focus on Product and Cost Rationalization
- Product Focus Recommendation: Findell Capital suggests that Figma streamline its product portfolio by concentrating on core offerings like Design, Dev Mode, FigJam, and Make, which would enable better utilization of engineering and product resources, thereby enhancing market competitiveness and accelerating product development speed.
- Cost Rationalization: With R&D spending projected to exceed 30% of revenues in 2026, Findell believes this figure should be significantly reduced to align with industry norms for SaaS companies, ultimately improving profit margins.
- Board Governance Review: Findell expresses concerns regarding the dynamics of Figma's board, particularly in relation to its ties with competitor Anthropic, urging an independent investigation to assess any potential improper use of Figma's confidential information.
- Market Misunderstanding and Value Unlocking: Findell asserts that Figma is a generational company that is currently misunderstood by the market, and improving margins and governance will help unlock additional value while enabling the market to better recognize its potential as a high-quality asset.
See More
FTSE Russell Announces Changes to Russell 3000 Index
- Index Changes Effective: FTSE Russell's reconstitution of the Russell 3000 Index will take effect after the US market close on June 26, aiming to better reflect the performance of the 3,000 largest U.S. companies, which represent approximately 98% of the investable U.S. equity market, potentially influencing investor asset allocation strategies.
- New Additions: Newly added companies in the information technology sector include CoreWeave (CRWV), Iren Limited (IREN), BitMine Immersion (BMNR), Wolfspeed (WOLF), and Figma (FIG), which may attract increased investor attention and enhance their market liquidity.
- Exiting Companies: Companies such as MicroVision (MVIS), Rezolve AI (RZLV), Kulr Technology Group (KULR), Airship AI Holdings (AISP), and AudioEye Inc. (AEYE) will exit the index, which could pressure their stock prices and impact investor confidence.
- Market Reaction Anticipation: With the entry of new companies and the exit of others, market volatility is expected, prompting investors to closely monitor the potential impacts of these changes on the financial performance and market positioning of the affected companies.
See More
Analysis of SpaceX IPO Prospects and Investment Risks
- IPO Market Performance: A Reuters analysis reveals that among the 50 highest-valued IPOs in the past five years, investors would have been better off investing in an S&P 500 index fund about two-thirds of the time, highlighting the investment risks associated with IPOs.
- SpaceX Valuation Challenges: SpaceX is expected to debut with a valuation of $1.75 trillion, yet its nearly 100 price-to-sales ratio significantly exceeds AI giant Nvidia's 24, indicating that high valuations may expose investors to greater risk of losses.
- Investor Participation Opportunities: Founder Elon Musk is making some shares available to retail investors through platforms like Robinhood and SoFi; however, Reuters' analysis suggests that investors buying on the first day of trading often face greater losses.
- Market Volatility and Returns: While AI-related companies like Astera Labs and Arm Holdings have shown impressive gains of 700% and 400% respectively, the disappointing performances of companies like Didi Global and Rivian Automotive illustrate the high uncertainty in the market.
See More
Figma Launches AI Design Assistant to Enhance Efficiency
- AI Design Assistant Launch: Figma's newly launched AI Design Assistant is designed to understand the context of design files and automate repetitive tasks, allowing designers to focus on innovation and aesthetics, which is expected to enhance team efficiency significantly.
- Strong Earnings Performance: Figma's first-quarter earnings report released last week showed robust revenue growth, alleviating market concerns about its AI monetization capabilities, with shares rising nearly 12% since the report, indicating a rebound in investor confidence.
- Enterprise Customer Upgrades: Many enterprise customers willingly upgraded to premium AI-related offerings after hitting usage limits tied to the company's 'Figma Make' features, demonstrating strong demand for generative design capabilities and further solidifying Figma's position in the industry.
- Workflow Integration: The new feature integrates directly into Figma's design environment, allowing designers to activate prompts from specific layers while exploring multiple creative directions simultaneously, enhancing team collaboration and reducing reliance on external tools.
See More
Chinese AI Labs Gain Cost Advantage Over U.S. Competitors
- Market Share Shift: Chinese AI models are capturing an increasing share of enterprise AI traffic, rising from 1% in 2024 to over 60% by May 2025, indicating a growing focus on cost-effectiveness that threatens OpenAI and Anthropic's market dominance.
- Significant Cost Comparison: AI benchmarking reveals that Anthropic's Claude model costs $4,811, while China's Zhipu GLM only costs $544 for the same workload, highlighting the cost advantage of Chinese labs that may drive enterprise customers to cheaper alternatives.
- Surge in Enterprise Spending: A survey indicates that 45% of companies are spending over $100,000 monthly on AI in 2025, a significant increase from the previous year, suggesting heightened sensitivity to AI costs that could impact OpenAI and Anthropic's IPO valuations.
- Accelerated Technological Shift: The CEO of Databricks noted that enterprises are adopting an
See More
Rising AI Costs Impact IPO Valuations for OpenAI and Anthropic
- AI Cost Pressure: Companies like Meta, Shopify, Spotify, and Pinterest have reported rising AI and inference costs as a drag on margins, with Shopify noting that economies of scale were partially offset by increased LLM costs, highlighting the profitability challenges faced across the industry.
- Intensifying Market Competition: As Chinese labs offer competitive models at lower prices, the IPO valuations for OpenAI and Anthropic, projected to exceed $800 billion, face pressure, as the assumptions regarding market share and pricing power are increasingly challenged.
- Shifts in Enterprise Budgets: A survey by CloudZero indicates that by 2025, over 45% of companies will spend more than $100,000 monthly on AI, a significant increase from the previous year, demonstrating a growing commitment to AI investments among enterprises.
- Accelerated Technological Transformation: The CEO of Databricks noted that enterprises are adopting an
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