Figma

FIG

Market cap $13B

A look at the best and worst S&P 500 stocks this year shows how tech investors have piled into semiconductor plays and bailed on software.

Software titans like ServiceNow, Microsoft, and SAP all fell double-digits on earnings, leading to a broad sell-off in the software sector. Fears of competition or disruption from AI are weighing on the sector.

Artificial intelligence (AI) is changing the way software traditionally operated, including for Figma and Adobe. Adobe implemented its own AI platform and delivered record fiscal fourth-quarter revenue.

Figma shares have fallen 58% since the last quarterly report, compressing valuation to an EV/S of 9.4x, despite hyper revenue growth (38% year on year last quarter) and market leadership. Recent AI-driven product launches, notably Figma Make, and a shift to usage-based pricing are expected to drive revenue acceleration and expand the addressable market. Concerns over Anthropic Claude Cowork competition are overstated; Figma's collaboration moat and integration with AI partners underpin its sustained growth potential.

SAN FRANCISCO--(BUSINESS WIRE)--Figma, Inc. (NYSE: FIG), a leading design and product development platform, today announced that its fourth quarter and full year 2025 financial results will be released after the U.S. financial markets close on Wednesday, February 18, 2026. Figma will host a conference call to discuss its results and guidance at 2 p.m. PT / 5 p.m. ET the same day. Access to the live webcast of the call and related earnings materials will be available through the Investor Relatio.

Fears of AI disruption have made software stocks very unpopular at the moment. Figma continues to slide, but the company could grow its revenue by 50% over the next couple of years.

The software design firm soared early on, then sank. Investors bought the hype.

The most oversold stocks in the information technology sector presents an opportunity to buy into undervalued companies.

Figma was one of the hottest IPOs of 2025. Its slowing growth and rising costs spooked the bulls.

Figma provides a collaborative design platform for creators of digital products. It went public last year and has delivered strong results in the quarters since then.