Shares of Figma (NYSE: FIG) have fallen off a cliff following the company’s initial public offering (IPO) just over a month ago. The initial investor enthusiasm about this cloud-based provider of collaborative digital design tools that help customers make websites, apps, and other digital products has faded quickly as its valuation and growth are now being examined closely.
Figma priced its IPO at $33 per share. The stock closed at just over $115 on the first day of trading on July 31, a jump of 3.5-fold. However, things have been going south for Figma investors since then. The stock is down 57% from the highs it achieved following its debut.
But why has that been the case, and is Figma’s big slide a buying opportunity for savvy investors? Let’s find out.