Figma’s Record-Breaking IPO: What Alternative Data Tells Us About the Stock’s Future
August 1, 6:34 pm
Figma (FIG) has officially made its public market debut, and it’s already one of the most talked-about IPOs of the year. The design software company, headquartered in San Francisco, opened with a splash that few could have anticipated—even in today’s AI-fueled tech landscape. At AltIndex, we’ve been tracking Figma for quite some time, and our alternative data insights shed new light on the company’s outlook following its record-setting market entry.
Historic Trading Debut
Figma went public with an IPO price of $33 per share, but the stock quickly defied expectations. Shares surged more than 250% on the first day of trading and peaked at $140, representing a 333% increase from the IPO price before pulling back slightly. According to Bloomberg data, this marks the largest first-day pop in over 30 years for a U.S.-listed company that raised more than $1 billion.
That kind of debut gave Figma a staggering $58 billion market capitalization - nearly triple the $20 billion valuation that would have come from its previously proposed merger with Adobe, a deal that was ultimately scrapped due to antitrust scrutiny. Investors clearly see a bright independent future for Figma, but the question now is: what happens next?
AltIndex’s Take: What the Alternative Data Tells Us
Figma may have wowed Wall Street, but what’s happening behind the scenes? That’s where our alternative data becomes invaluable. Let’s break down the signals we’re seeing across key metrics:
🔍 Employee Sentiment: Stable and Positive
According to online employee reviews we monitor, 78% of Figma employees report a positive business outlook. What’s even more telling is that this figure has remained consistent over the past 12 months, showing confidence in the company’s direction and leadership even prior to going public.
📈 Web Traffic: A Steady Climb
Web traffic is one of the strongest real-time indicators of user growth and product adoption, especially for a SaaS company like Figma. Our data shows monthly web visits are growing steadily, which points to healthy user acquisition and engagement. Since most users interact with Figma directly via its web platform, this is a particularly relevant metric to watch.
📱 Social Media Momentum: Catching Up Fast
Figma currently boasts nearly 800,000 Instagram followers, which is still behind Adobe’s 2 million+, but Figma is gaining ground quickly. The acceleration in its social following is a sign of brand awareness on the rise - especially impressive for a product that until recently was primarily used by design professionals.
🗣 Reddit Sentiment: Bullish but Shifting
Reddit has become a barometer for real-time investor sentiment, and Figma has quickly risen to become one of the most discussed stocks on Reddit. Until recently, sentiment was overwhelmingly bullish, fueled by excitement over the IPO. But in the last 24 hours, Reddit users have begun expressing caution, pointing out that the massive post-IPO run has pushed the stock into potentially overvalued territory.
Financial Reality: A Lofty Valuation
While growth metrics and enthusiasm are clear, the financials provide a dose of reality. In its most recent filing, Figma reported:
- Net income: $44.9 million
- Revenue: $228 million (for the quarter ended March 31)
Those numbers are solid for a software company, but a $58 billion valuation gives Figma a rich multiple, even by growth-tech standards. It’s a signal that the market is pricing in aggressive future growth, and perhaps some execution risk as well.
So, Is Figma a Buy?
That depends on your investment horizon and risk tolerance. The alternative data paints a very promising picture of Figma’s momentum, brand appeal, and user growth. But the valuation is undeniably steep. For now, we think Figma deserves a spot on every investor’s watchlist, especially if the stock pulls back to more sustainable levels.
As always, AltIndex will continue to track Figma’s performance through a wide lens of non-traditional data - from employee reviews and social buzz to web traffic and product growth. These insights can help investors stay one step ahead in identifying where the company, and the stock, might be headed next.
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