Why Figma Stock Is Crashing Hard Today - 2025’s Biggest Tech Wipeout?

Figma shares are in freefall—bleeding out as the market delivers a brutal verdict on the design platform's prospects.

The Mass Exodus

Investors are dumping shares like hot potatoes after disappointing earnings revealed growth is stalling. The numbers don't lie—user adoption rates are slipping while competitors are eating their lunch.

Market Reality Check

Wall Street analysts are slashing price targets across the board. One fund manager quipped 'This is what happens when you prioritize designer-friendly interfaces over actual revenue streams—another tech darling learning that aesthetics don't pay the bills.'

Broader Tech Carnage

The plunge drags down the entire SaaS sector. Traders are rotating into AI infrastructure plays instead, leaving design tools in the dust. Because nothing says '2025 portfolio' like betting on pixels while everyone else is cashing in on compute.

Image source: Getty Images.

Figma stock is sinking despite solid Q2 results

Figma reported non-GAAP (adjusted) net income of $19.8 million on revenue of $249.6 million in Q2. The company's net profit was roughly in line with Wall Street's target, and sales for the period topped the average analyst estimate's call for sales of $248.8 million. 

Figma had already published preliminary results for the quarter, so the performance for the period was in line with the market's expectations. On the other hand, the company's guidance for the Q3 and full-year periods disappointed investors and is prompting a big valuation pullback today.

What's next for Figma?

Figma completed its initial public offering (IPO) at the end of July, and the quarterly report published yesterday has provided investors with the company's first official guidance update. For the third quarter, Figma is targeting sales between $263 million and $265 million, representing growth of roughly 33% year over year at the midpoint of the guidance range.

On the heels of the growth it posted in Q2 and the 48% annual sales increase recorded in 2024, the company's forecasts call for a substantial deceleration of growth. Figma's second-quarter results and forward guidance don't look terrible by any stretch of the imagination, but the stock could continue to be volatile as investors try to assess how to value the newly public company and its longer-term growth trajectory.