Investment Comparison: Adobe vs. Figma
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Source: Fool
- Market Performance Comparison: Adobe boasts a market cap of $120 billion with $23.8 billion in annual revenue and $7.1 billion in net income, showcasing its strong profitability as a creative software giant; in contrast, Figma has a market cap of $13 billion and only $1 billion in annual revenue, despite a 38% revenue growth rate, indicating a high-risk investment profile.
- Product Positioning Differences: Adobe primarily offers a suite of creative tools through its Creative Cloud, covering graphic design, video editing, and more, while Figma focuses on a browser-based design tool for real-time collaboration, attracting design teams from startups and tech companies, highlighting their distinct strategic positions in the market.
- Acquisition Impact Analysis: Adobe's failed attempt to acquire Figma for $20 billion due to antitrust concerns resulted in a $1 billion breakup fee, which provided crucial support for Figma's operations, allowing it to gain a larger market share in the competitive landscape.
- Investor Choice Considerations: While Figma's revenue growth is nearly four times that of Adobe, it continues to burn cash and has seen its stock price plummet since its IPO; conversely, Adobe, as a profitable market leader, appeals to value investors, whereas Figma attracts those seeking high-risk, high-reward opportunities.
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Analyst Views on FIG
Wall Street analysts forecast FIG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FIG is 53.13 USD with a low forecast of 38.00 USD and a high forecast of 70.00 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.
9 Analyst Rating
3 Buy
6 Hold
0 Sell
Moderate Buy
Current: 27.070
Low
38.00
Averages
53.13
High
70.00
Current: 27.070
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.
Figma's Stock Volatility and AI Strategy
- IPO Performance Review: Figma went public at $33 per share last July, soaring to a 52-week high of $142.92 in August, but by January 21, the stock had plummeted to $26.79, indicating market caution regarding its future prospects.
- Customer Growth and Retention: In Q3 2025, Figma added over 1,000 customers with annual recurring revenue of $10,000 or more, achieving a net dollar retention rate of 131%, which indicates that high-value customers are increasing their spending, reflecting the market appeal of its products.
- Strong Financial Performance: Figma achieved record revenue of $274.2 million in Q3, a 38% year-over-year increase, and anticipates Q4 revenue between $292 million and $294 million, showcasing its ongoing sales growth potential.
- Profitability Challenges: Despite robust revenue growth, Figma faced a massive net loss of $1.1 billion in Q3 primarily due to stock-based compensation costs related to its IPO; however, the company posted a net income of $28.2 million in Q2, suggesting a potential return to profitability in the future.
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Investment Comparison: Adobe vs. Figma
- Market Performance Comparison: Adobe boasts a market cap of $120 billion with $23.8 billion in annual revenue and $7.1 billion in net income, showcasing its strong profitability as a creative software giant; in contrast, Figma has a market cap of $13 billion and only $1 billion in annual revenue, despite a 38% revenue growth rate, indicating a high-risk investment profile.
- Product Positioning Differences: Adobe primarily offers a suite of creative tools through its Creative Cloud, covering graphic design, video editing, and more, while Figma focuses on a browser-based design tool for real-time collaboration, attracting design teams from startups and tech companies, highlighting their distinct strategic positions in the market.
- Acquisition Impact Analysis: Adobe's failed attempt to acquire Figma for $20 billion due to antitrust concerns resulted in a $1 billion breakup fee, which provided crucial support for Figma's operations, allowing it to gain a larger market share in the competitive landscape.
- Investor Choice Considerations: While Figma's revenue growth is nearly four times that of Adobe, it continues to burn cash and has seen its stock price plummet since its IPO; conversely, Adobe, as a profitable market leader, appeals to value investors, whereas Figma attracts those seeking high-risk, high-reward opportunities.
Continue Reading