Figma Stock Tests Trend Reversal as Sellers Return After July Rally

Quick overview

Figma shares have lost more than half their value over six months despite strong financial results, with a sharp July rebound now facing a critical test as renewed AI disruption fears send FIG stock below $22.

Figma Stock Drops Nearly 9% as Downtrend Reversal Faces Test

Figma stock has come under renewed selling pressure after attempting to reverse a prolonged downtrend in July.

The collaborative design software company saw its shares climb above several technical indicators and reach approximately $25 earlier this month, raising hopes that buyers were beginning to regain control.

However, that recovery quickly lost momentum.

On Tuesday, FIG stock dropped nearly 9%, falling below $22 as sellers returned aggressively.

Figma Stock Chart Daily – Will MAs Hold As Support

The latest decline creates an important technical test for Figma shares. Investors must now determine whether the July rebound was the beginning of a broader recovery or simply a temporary bounce within a longer-term downtrend.

Strong Earnings Fail to Overcome AI Concerns

Figma delivered impressive financial results in the first quarter of 2026, but strong fundamentals have struggled to overcome investor concerns about the potential impact of artificial intelligence.

Revenue increased 46% year over year to $333.4 million, while non-GAAP earnings per share reached $0.10, significantly exceeding the $0.06 consensus estimate.

Net dollar retention also climbed to 139%, its strongest level in more than two years.

The company subsequently raised its full-year revenue guidance by $55 million.

Despite these results, investors have remained focused on the possibility that AI-native design tools could eventually disrupt Figma’s core business model.

AI Competition Becomes the Central Investor Concern

Much of the negative sentiment has centered on the emergence of AI-native competitors, including Anthropic’s Claude Design.

The concern is that increasingly capable generative AI tools could eventually commoditize parts of the design process, reducing the need for specialized collaborative design platforms.

The argument is straightforward: if designers can generate high-quality interfaces and prototypes using simple prompts, the long-term value of traditional design software could come under pressure.

However, Figma’s actual financial performance has not yet confirmed this bearish scenario.

The company continues to grow rapidly, while management is actively integrating AI features into its platform.

Figma Attempts to Monetize AI

Figma began charging customers for AI credits in mid-March, providing an opportunity to turn growing AI usage into an additional revenue stream.

Early results have reportedly been encouraging.

More than 75% of enterprise users who reached their AI usage limits continued paying for additional credits.

Teams purchasing AI add-ons are also spending more than three times as much annually as customers who do not use the features.

CEO Dylan Field has argued that Figma’s collaborative multiplayer canvas and extensive product context give the platform advantages that purely AI-native tools may struggle to replicate.

However, investors remain cautious about whether these advantages will be sufficient to protect Figma’s market position as AI technology continues developing rapidly.

Activist Pressure Adds to Investor Uncertainty

Figma’s challenges have also attracted activist investor attention.

Findell Capital reportedly described the stock as significantly undervalued and encouraged management to reconsider aspects of its relationship with Anthropic.

A securities law investigation announced earlier in the year has added another layer of uncertainty.

While these developments do not necessarily change Figma’s underlying financial performance, they have contributed to a difficult investment narrative.

FIG Stock Valuation Remains Demanding

Even after its substantial decline, Figma remains valued at a premium.

The stock has been trading at approximately 47 times free cash flow and 62 times forward earnings.

Those multiples leave limited room for disappointment.

However, supporters argue that a company growing revenue by 46% annually, improving profitability, and maintaining strong customer retention deserves a premium valuation.

Figma also holds approximately $1.6 billion in cash and has nearly 690,000 paid customers, providing a significant financial cushion.

Its strong upselling dynamics and customer switching costs could also help protect the business from competitive disruption.

Figma Stock Faces Critical Technical Decision

The sharp decline below $22 has weakened the July recovery and raises questions about whether the broader downtrend remains intact.

If buyers can stabilize the stock and reclaim the $25 area, the recent pullback could eventually prove to be a temporary correction.

However, continued weakness could signal that sellers remain firmly in control.

For now, Figma’s fundamentals remain impressive, but the stock’s valuation and AI disruption fears continue to create significant uncertainty. The next phase of the recovery will likely depend on whether investors begin trusting Figma’s ability to turn AI from a competitive threat into a profitable growth opportunity.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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