$Figma(FIG)$ Figma’s 250% IPO pop is the kind of debut that gets everyone’s attention—and divides the market into true believers and seasoned skeptics. Opening at $85 and closing at $115.50, the stock not only more than tripled its IPO price but also set a modern benchmark for first-day euphoria, briefly giving Figma a staggering $47 billion market cap. That’s heady territory for a company that, just a few years ago, was still a startup darling in the SaaS world.

So what now—do you go long, or is it time to fade the hype?

If you’re long: You’re betting that Figma isn’t just a design tool, but a foundational cloud collaboration platform with huge runway ahead. The company’s viral adoption, passionate user base, and deep integration into workflows have all the hallmarks of a modern SaaS superstar. The argument is that Figma’s network effects and product stickiness mean it can keep winning market share from incumbents, expand globally, and monetize more deeply. If the company can keep growing at 40%+ and edge towards profitability, $47 billion might look reasonable in a few years—especially in a market that’s still rewarding cloud growth stories.

But if you’re short: The case is clear. At $47 billion, Figma’s valuation is richer than some blue-chip software companies with far deeper enterprise penetration and profitability. The debut was driven by FOMO, a light float, and pent-up IPO demand—classic conditions for a sharp post-IPO hangover once the euphoria fades and early insiders are able to sell. Remember Snowflake, Arm, and even CRCL—all saw epic first-day moves and then months of choppy trade or outright declines as the real world caught up to the hype. With interest rates still elevated and the market more discerning about SaaS valuations, a pullback is almost inevitable unless Figma delivers perfect execution.

Fundamentals:

Figma has the product and growth metrics that excite bulls, but sustaining such a lofty valuation requires flawless growth, expanding margins, and a clear path to real profits—not just buzz and user growth. The company needs to prove it can convert free users to paid, expand into new verticals, and maintain its innovation edge against a wave of copycats and big tech competitors.

Bottom line:

Right now, Figma is a “trade the volatility” name, not a “set and forget” investment. If you believe in the vision and can stomach wild swings, scaling in slowly or waiting for a pullback makes sense. If you’re a value investor, the risk/reward isn’t there yet—let the dust settle, see a few quarters of public earnings, and judge the fundamentals against the hype. Either way, this IPO is a reminder: nothing soars 250% forever, and gravity (and lockup expiries) always catch up.