As Competition Heats Up, Can Figma Recover?
Key Points
Figma reached $1 billion in revenue for the first time last year.
The company's stock has plummeted nearly 80% since the company's IPO in mid-2025.
- 10 stocks we like better than Figma ›
Figma (NYSE: FIG) made its stock market debut less than a year ago. It immediately popped on its first day of trading, marking the largest single-day gain for a U.S. company of its size in three decades.
The good times didn't last though, and now shares are down nearly 80% from their peak. Last week, Anthropic released Claude Design as a direct rival to Figma, Adobe, and Canva. In a space where artificial intelligence (AI) competitors are improving substantially and quickly, does this spell doom for Figma?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The answer isn't definitive right now, but Figma does need to deepen its relationship with its core customer: professional designers. As of right now, Claude Design is more likely to be used by nonprofessionals and hobbyists. This is where Figma can reassert its dominance.
Figma has become a leading design tool for designers worldwide, and it's indispensable to the workers who rely on it. It's doubtful companies will jump ship and immediately pledge loyalty to Claude Design.
Figma had an excellent 2025. Revenue eclipsed $1 billion, increasing 41% year over year. International revenue grew 45%.
Image source: Getty Images.
Early 2025 estimates showed that Figma had more than 13 million users and that 95% of Fortune 500 companies used the platform. Figma also has a commanding market share in the design industry. Rival Invision went out of business in late 2024, leaving Figma and Adobe competing for design professionals' preference.
Figma only has so much time to cement its relationship with professional teams. Figma isn't doomed, but it does need to act with urgency. AI is closing the gap on professional design tools.
Now is the time for Figma to stay true to its core purpose: serving pros better than anyone else.
Should you buy stock in Figma right now?
Before you buy stock in Figma, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Figma wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $499,277!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,225,371!*
Now, it’s worth noting Stock Advisor’s total average return is 972% — a market-crushing outperformance compared to 198% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of April 22, 2026.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe and Figma. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.
Recommended Articles
