Figma Stock Could Rebound on May 14 Earnings After 83% Drop and AI‑Driven Sell‑off

Figma debuted on the NYSE in July 2023 and quickly became a symbol of the broader SaaS downturn, often called the "SaaSpocalypse." Despite strong revenue growth, investor worries about valuation and the threat of AI‑native design tools have kept the stock under pressure. The iShares Expanded Tech‑Software ETF, a benchmark for cloud software, has risen more than 20% from its recent low, suggesting the sector may be finding a floor.

Figma’s share price is now 83% below its post‑IPO high. On April 17, the stock fell 7% after Anthropic unveiled Claude Design, a direct AI‑powered competitor to Figma’s core product. For the upcoming quarter, Figma guided to 38% revenue growth, while its full‑year outlook of 30% implies only 27% growth for the remaining three quarters. The stock currently trades at a trailing price‑to‑sales ratio of about 10, with a market cap near $4.2 billion.

If Figma beats its Q1 estimate and raises full‑year guidance, the stock could react sharply given its relatively modest valuation. Management will likely highlight its own AI‑enabled features and recent acquisitions to counter the Anthropic narrative. Investors will watch the May 14 earnings call for any upward revision to revenue targets and commentary on AI product adoption, which could signal whether the recent sell‑off was overdone.