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By Raan (Harvard alumni)

© 2025 stockswarg.com | About | Authors | Disclaimer | Privacy

By Raan (Harvard alumni)

Figma Stock Explained: Is Figma a Good Buy or Risky Bet?

Figma Stock: Is Figma a Good Buy or Just Hype?

If you’ve ever designed a website, app, or logo, chances are you’ve heard of Figma. Designers love it. Startups depend on it. Big tech teams swear by it.

But when it comes to Figma stock, things get confusing fast.

Is Figma stock public?

Can you invest in Figma now?

Why is everyone asking if Figma is overvalued?

And most importantly — is Figma stock a good buy?

Let’s slow things down and break this apart in plain English. No hype. No financial jargon. Just real talk.

Think of this article as sitting across a coffee table while we flip through Figma’s business story together.

Table of Contents

Sr#Headings
1What Is Figma and Why Is It So Popular?
2Is Figma Stock Public Right Now?
3The Figma IPO: What We Know So Far
4Why Is Figma So Highly Valued?
5Why Is Figma Stock Falling (or Expected to Fall)?
6Is Figma Profitable or Losing Money?
7Who Owns Figma? Biggest Investors Explained
8Who Almost Bought Figma? The Adobe Deal
9Figma vs Canva: Who’s the Bigger Threat?
10Is Figma Overvalued or Undervalued?
11Figma Stock Price Target (2025–2027)
12Is Figma a Risky Investment?
13Should You Buy, Hold, or Avoid Figma Stock?
14What Warren Buffett Would Think About Figma
15Final Verdict: Is Figma Worth It in 2025?

1. What Is Figma and Why Is It So Popular?

Figma is a cloud-based design platform that lets teams design together in real time. No downloads. No chaos. Everyone works on the same canvas.

Why designers love it:

  • Real-time collaboration
  • Browser-based (works anywhere)
  • Strong community ecosystem
  • Sticky subscriptions (teams don’t leave easily)

In simple terms, Figma is to designers what Google Docs is to writers.

That’s powerful.

2. Is Figma Stock Public Right Now?

Short answer: No.

Figma is still a private company. That means:

  • You can’t buy Figma stock on the stock market yet
  • No ticker symbol
  • No daily stock price chart

So when people search “Figma stock price live” or “Figma stock Reddit”, they’re usually talking about IPO rumors and expectations, not real trading.

3. The Figma IPO: What We Know So Far

Figma’s IPO is one of the most anticipated tech listings.

Key expectations:

  • Strong institutional demand
  • Likely oversubscribed (possibly “40x oversubscribed”)
  • High valuation compared to revenue

People who got rich off the Figma IPO (when it happens) will likely be:

  • Early employees
  • Venture capital firms
  • Founders

Retail investors? They usually come after the biggest gains.

4. Why Is Figma So Highly Valued?

Figma’s valuation isn’t about today’s profits — it’s about future dominance.

Reasons investors love it:

  • Massive design market
  • High switching costs
  • Viral growth among developers
  • AI-powered design roadmap

But here’s the catch…

High expectations mean low room for mistakes.

5. Why Is Figma Stock Falling (or Expected to Fall)?

Even before an IPO, people ask: Why is Figma stock falling?

What they really mean is:

  • Valuations are compressing across tech
  • Investors are less patient with losses
  • High-growth stocks aren’t trendy right now

Just look at what happened to companies after IPOs in 2022–2024.

Great products. Painful stock charts.

6. Is Figma Profitable or Losing Money?

Figma does generate revenue, but profitability is still debated.

Key points:

  • Strong recurring subscriptions
  • Heavy spending on R&D and AI
  • Focus on growth over margins

So if you’re asking:

  • Is Figma making money?Yes
  • Is Figma highly profitable?Not yet

7. Who Owns Figma? Biggest Investors Explained

Major Figma investors include:

  • Venture capital firms
  • Founders and early employees

No, Microsoft does not own Figma.

And no, Figma does not own Bitcoin.

8. Who Almost Bought Figma? The Adobe Deal

In 2022, Adobe shocked the market by announcing plans to buy Figma.

Why it failed:

  • Regulatory pressure
  • Antitrust concerns
  • Global scrutiny

The deal collapsed — but it validated one thing:

Figma is a monster asset.

9. Figma vs Canva: Who’s the Bigger Threat?

Canva is Figma’s biggest competitor.

The difference:

  • Canva = simplicity for everyone
  • Figma = power for professionals

Think bicycle vs sports car. Different users. Different risks.

10. Is Figma Overvalued or Undervalued?

Right now? Likely overvalued on traditional metrics.

But growth investors don’t care about today’s valuation. They care about:

  • Market dominance
  • Long-term expansion
  • AI integration

So is Figma undervalued? Not yet.

Is it promising? Absolutely.

11. Figma Stock Price Target (2025–2027)

Because Figma isn’t public yet, price targets are hypothetical.

Analyst expectations (estimated):

  • IPO valuation: aggressive
  • 12-month target: volatile
  • 2027 outlook: depends on profitability

Translation? This won’t be a calm stock.

12. Is Figma a Risky Investment?

Yes — especially early on.

Risks include:

  • IPO volatility
  • Overvaluation
  • Competition
  • Market sentiment

If you hate red days, Figma may test your patience.

13. Should You Buy, Hold, or Avoid Figma Stock?

Before asking “Should I buy or sell Figma stock?”, ask yourself:

  • Can I handle volatility?
  • Am I investing long-term?
  • Do I understand the business?

This is not a dividend stock.

This is a growth rollercoaster.

14. What Warren Buffett Would Think About Figma

Warren Buffett prefers:

  • Predictable cash flows
  • Strong moats
  • Profitable businesses

Through Berkshire Hathaway, he avoids flashy IPOs.

So no — Figma is not Buffett’s favorite stock to buy.

15. Final Verdict: Is Figma Worth It in 2025?

Figma is:

  • A brilliant product
  • A strong brand
  • A risky investment

It’s like buying a rocket before liftoff — exciting, but dangerous if timed wrong.

Conclusion

Figma isn’t just a design tool. It’s a movement. But great companies don’t always make great stocks — especially at IPO.

If you’re patient, informed, and risk-aware, Figma could be worth watching closely. Just don’t confuse popularity with safety.

FAQs

1. Is Figma stock public?

No, Figma is still a private company and has not gone public yet.

2. Can I invest in Figma now?

Only through private markets or pre-IPO funds, not regular stock exchanges.

3. Why did Adobe want to buy Figma?

To dominate the design software market and remove a major competitor.

4. Is Figma profitable?

Figma generates revenue but prioritizes growth over profitability.

5. Is Figma a safe investment?

No high-growth IPO is truly “safe.” Figma carries significant risk and reward.

No advice. Just the raw stuff.

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By Raan (Harvard alumni)

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