To The Moon

$Figma(FIG)$ 

🚀 IPO Overview

• Figma priced its debut at US $33/share on July 30, 2025, offering a total of ~36.94 million shares, raising around US $1.2 billion. 

• It began trading under the ticker FIG on the NYSE on July 31, 

• In its first trading session, shares surged over 200–250%, reaching above US $115–$117, driven by high demand and repricing of valuation, giving a market cap > US $57–68 billion at close.

Fundamental & Prospectus Highlights

• Revenue: US $749 million in FY 2024, up ~48% YoY; Q1 2025 revenue of US $228 million, +46% YoY.

• Profitability: Net loss in 2024 of US $732 million (mostly from stock-based comp) turning to a net income of US $44.9 million in Q1 2025.

• Margins: Very strong, with gross margin ~91% and operating margins ~18% in early 2025.

• Capital: Backers include Sequoia, Greylock, Index Ventures, Kleiner Perkins—Sequoia turned ~$150M into billions post‑IPO.

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Technical / Momentum Analysis

• Huge first‑day pop: IPO at $33, trading opened ~ $85, closed above $115—tripling in value, reflecting strong market momentum and investor enthusiasm.

• Momentum narrative: Positioned as one of the hottest emerging SaaS IPOs; analysts suggest it may fuel further VC‑backed tech offerings (e.g. Canva, Netskope).

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Macro Environment & User‑Base Strength

• Macro tailwinds: Sluggish tech IPO activity in prior years; Figma seen as a bellwether for revival of venture exits and tech IPO openings.

• User metrics: ~13 million monthly active users, nearly all Fortune 500 companies are clients (~95%).

• Network effects: Collaboration tools drive team-wide adoption; high switching costs reinforce stickiness and growth.

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Value Investing / Intrinsic Valuation Lens

• Reddit / DCF-based estimate suggests a conservative intrinsic value of $3.3–3.5 billion ($18.5/share on ~585 million FD shares), arguing IPO pricing is rich with limited margin of safety.

• Key risks include intense AI competition (from Adobe, Microsoft, etc.), regulatory scrutiny, high expectations baked into current pricing, and potential deceleration of growth post-IPO.

Investment Perspective

• Fundamentals: Impressive growth, strong monetization, engaged user base—classic SaaS qualities.

• Momentum: Post-IPO trading strength is unmistakable—but may already reflect full potential.

• Long-term: If you’re a value‑focused investor, entry at $33–$35/share leaves little floor. Consider waiting for potential pullbacks. If you believe in Figma’s long-term AI‑driven expansion and wide moat, a small starter position may make sense, ideally near $50–60/share.

• Watch‑outs: AI competition, valuation cooling, lock‑up expiries, and general tech market sentiment shifts.

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In conclusion

Figma’s IPO was a blockbuster debut event: pricing above range, strong growth fundamentals and user traction, and exceptional first-day momentum. But from a value‑oriented angle, the pricing may be aggressive relative to intrinsic estimates. Ultimately, investor strategy—growth‑oriented vs. value‑focused, long‑term conviction vs. timing entry—is key in framing whether FIG stock fits.

PS: Not financial Advise but will wait and see since it's already near 5x ipo price. DYOR🙏😎🫡🍀