Thousands of Figma Inc. (NYSE:FIG) employees who spent a decade building the design software giant officially saw their paper fortunes evaporate this week as the company's 180-day post-IPO lock-up period expired, leaving staff to liquidate shares at a fraction of their peak value.
The Great Reset
The expiration of the lock-up period on Jan. 27 marked a somber milestone for the San Francisco-based firm.
While Figma's July 2025 debut was viewed as one of the hottest tech offerings of the year, surging 250% on its first day to reach a staggering $143.45 per share, the subsequent six months have been a relentless downward slide.
As of Feb. 4 close, the stock is trading at $22.51 apiece—an 80.51% drop from its all-time high and significantly below its $33 IPO price.
For many early employees, the 180-day waiting period acted as a legal barrier to life-changing wealth. “Imagine being a Figma employee who waited a decade for the IPO only to have a 180-day lock-up that ended last week,” noted one viral post on X from Rebound Capital, highlighting the irony of the timing.
Market Pressures, AI Fears
The collapse in valuation follows a series of analyst downgrades and broader sector volatility. On Feb. 3, Piper Sandler analyst Hannah Rudoff slashed the price target for Figma from $70 to $35, citing “heavy selling pressure” across software names.
Beyond macroeconomic trends, investors have grown wary of Figma’s competitive moat in an AI-dominated landscape.
Despite launching new products like Figma Make and Figma Sites, the company faces mounting pressure from incumbents like Adobe Inc. (NASDAQ:ADBE) and Microsoft Corp. (NASDAQ:MSFT), who have aggressively integrated generative AI into their own creative suites.
Inside The Numbers
The technical outlook remains bleak. The stock is currently positioned closer to its 52-week low of $18.41 than its triple-digit highs.
While the company reported 38% year-over-year revenue growth in its last quarterly filing, the market’s reassessment of SaaS valuations has been unforgiving.
With the lock-up now over, the flood of insider selling is expected to provide further headwind for the embattled stock. Benzinga’s Edge Stock Rankings indicate that FIG maintains a weaker price trend over the short, medium and long terms.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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