Figma IPO Price Prediction & Investment Outlook: Beginner-Friendly Full Walkthrough

8/4/2025, 6:25:27 PM
A comprehensive interpretation of Figma's IPO pricing process, financial growth, competitive landscape, and stock price predictions on July 31, 2025, combined with the latest data and risk analysis, providing a research guide for Newbie investors.

1. IPO Pricing Review: Why Did It Ultimately Rise to $33

Figma initially submitted a price range of $25–28 per share, corresponding to a valuation of approximately $1.64 billion. As the roadshow progressed and investor response was enthusiastic, the company raised the range to $30–32 at the end of July. Oversubscription by investors and several large institutions queuing for purchases ultimately drove the final pricing to $33 per share, raising a total of $1.2 billion–$1.22 billion, with a valuation exceeding $1.9 billion. This price increase reflects the high recognition from investors of the company’s development prospects.

2. Analysis of Financial and Product Advantages Supporting Valuation Increase

Figma achieved revenue of $749 million in 2024, a year-on-year increase of 48%. As of Q1 2025, revenue reached $228.2 million, with a net profit of $4.49 million, NDR exceeding 130%, and a gross margin of 91%. The Rule of 40 metric stands at 77, which is enough to demonstrate its growth alongside profitability.

Figma estimates that its addressable market size is 33 billion dollars, far greater than its current revenue scale, indicating strong growth potential. At the same time, Figma has launched several AI-driven new products such as Figma Make, Sites, Buzz, Draw, etc., creating a complete ecosystem from design to prototyping, marketing content, and website building, achieving product expansion and revenue diversification.

3. Future Stages of Stock Price Prediction: Surge, Correction, and Growth Stages

Phase One (First Day Explosion)

The first day of trading for the IPO was extremely impressive, with an opening price of about 85 USD, a peak intraday price close to 125 USD, and a closing price of 115.50 USD, representing an increase of over 250%. This “first-day bounce” is usually driven by market sentiment premium for popular IPOs.

Phase Two (Mid-term Correction)

After the release period ends and institutions take profits, some funds may lower the price. Analysts predict that a pullback to the range of 50–70 dollars is reasonable, corresponding to a valuation between 15–20 billion dollars.

Stage 3 (Long-term Growth)

If AI tools are commercialized, corporate payments grow, and global expansion continues to gain momentum, the valuation could surpass 24 billion dollars, with a stock price target range expected to reach 75–90 dollars, and even rise further with the expansion of market capitalization.

4. Investment Strategy Recommendations and Potential Risks

Investment Strategy:

  • Short-term traders: Consider participating slightly in the high volatility on the first day, and lock in profits in a timely manner after gaining.
  • Batching positions: Wait for the lock-up period to pass, invest in batches during price stabilization and pullback phases;
  • Long-term holders: Focus on product commercialization progress and financial report data, suitable for long-term holding.

Potential Risks:

  • Market competition risk: Increased competition from Adobe, Canva, and other new AI projects;
  • Valuation volatility risk: Short-term valuation has reached 75× revenue, and if performance does not meet expectations, it may correct;
  • Macroeconomic policies and economic environment: Changes in international customer demand, interest rate fluctuations, and global economic uncertainty may all impact stock price performance.

Conclusion: Figma successfully priced its IPO at $33 per share, raising over $1.2 billion and achieving a valuation of approximately $1.93 billion. Despite the impressive short-term rise, prudent analysts should focus more on the mid-term valuation rationality and long-term growth potential. For Newbie investors, understanding the phase risks and future drivers is key to making investment decisions.

* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
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